After unseating the New York Yankees from having the highest payroll in baseball, the Los Angeles Dodgers came close to overtaking them in another category. Since being taken over by the Guggenheim Group, the Dodgers have climbed the ranks in many aspects and have regained their popularity as one of the best teams in baseball.
According to Mike Ozanian of Forbes, the Dodgers ranked second in this category for the third straight year:
The Dodgers place second on our list with a value of $2 billion.
The Dodgers still have a ways to catch the Yankees, who are worth an estimated $2.5 billion and are the most valuable team in all of sports. What will help the Dodgers in the future is if they continue to have success and lead the league in attendance. They were given a big boost in value by their deal with Time Warner Cable that paid them an approximate $8 billion over the next 25 years.
However, the deal hasn’t been as lucrative as expected thus far because of a number of issues that Ozanian breaks down:
The TWC deal justifies the $2 billion paid by Guggenheim Partners for the Dodgers two years ago, although the team will not keep as much of its television bounty as it wanted. The Dodgers argued with MLB that only the rights fee portion of the deal, which increases at a 4% annual rate, should be subject to the league’s 34% revenue-sharing system. Baseball argued that a precedent had been set at the time of the Texas Rangers new cable deal and that because TWC has assumed most of the risk around the channel and promised to cover affiliate fees from distributors who refuse to carry it, all of the money should be subject to revenue sharing. A compromise was reached whereby roughly half of the RSN “value” payment–$1.9 billion in total–will be included in MLB’s revenue-sharing pool.
In total, the Dodgers will lose almost $2 billion to revenue sharing, as well as deal with the fact that not all distributors have picked up the channel yet. A strong season by the Dodgers and a possible World Series title could inch them closer to the Yankees next year and put them over the $2 billion line to make them one of the most valuable teams in all of sports.
ICYMI: Here’s our Dodgers Nation Update Video