Baseball Bonanza

The average baseball team is now worth $744 million, 23% more than a year ago. During the 2012 season, revenue (net of stadium debt service) rose 7%, to an average of $227 million per team. Operating income (earnings before interest, taxes, depreciation and amortization) per team fell 9%, to $13.1 million, mainly due to higher player costs and stadium expenses.

Why did values climb as profits fell? Well, valuations were boosted by escalating television rights fees, the increased value of MLB Advanced Media, and improved returns on the league’s investment fund.