The value of the Philadelphia Phillies climbed 12% during the past year to $2.3 billion, according to The Philly Business Journal citing a report published by Forbes.
That figure, attained despite the Phillies missing out on the playoffs for the 10th consecutive season in 2021, ranked the team at No. 8 among Major League Baseball's most valuable franchises. Philadelphia had the same ranking last year.
The New York Yankees claimed the top spot in Forbes' rankings with a value of $6 billion, followed by the Los Angeles Dodgers at just under $4.1 billion and the Boston Red Sox at $3.9 billion. The Phillies finished one spot below the St. Louis Cardinals, which Forbes valued at $2.45 billion, and one spot ahead of the Los Angeles Angels at $2.2 billion.
The Phillies were one of 11 MLB teams that saw their value jump at least 10% year over year, tying the Atlanta Braves and the Cleveland Guardians for the sixth-highest increase in the league.
Forbes' team values are enterprise values, which combine equity and net debt. Its values are calculated using multiples of revenue that are based on "historical transactions and the future economies of the sports and teams."
The analysis credited the boost in MLB team values, which averaged 9% league-wide, to new television money and provisions in the newly signed collective bargaining agreement (CBA) that will provide new sponsorship revenue opportunities for teams in the years ahead.
That potential infusion will be well-received, given the hit baseball teams took over the past two years because of the Covid-19 pandemic.
Overall, the report noted, MLB lost more than $1.1 billion during the past two years as teams struggled with a shortened season in 2020 when no fans were allowed in ballparks and a full 2021 season when attendance was restricted at most stadiums until July.
According to Forbes, the Phillies lost $17 million last year while generating revenue of $323 million — including gate receipts of $55 million.
Under the five-year CBA signed two weeks ago, teams are expected to be able to generate more than $400 million combined in new revenue for jersey and helmet sponsorships beginning in 2023. Forbes said the jersey patch deals are expected to be done at the local level, meaning teams will be able to keep all revenue. The helmet deal is expected to be done at the league level, with revenue split evenly among the league's 30 teams. A portion of the helmet sponsorships will go toward the $50 million bonus pool created under the CBA for younger players who do not qualify for salary arbitration.
On the television front, the league's decision to expand the playoffs to 12 teams will mean more postseason broadcasting revenue under the league's deal with ESPN, which has the rights to the additional games. The league also signed new streaming deals with Apple and Peacock valued at $115 million annually.
The Phillies, Forbes notes, have one of the five most lucrative local cable television rights deals in the league, collecting about $110 million in fees from Comcast in 2021. Only the Dodgers and Yankees collected more from cable fees last season, according to Forbes.
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