Bloomberg: Jays doing really well for Rogers

[dagger]

This is a subscriber only article in the Globe, so I'm an just giving excerpts here. It's pretty self-explanatory, and it backs up what we've suspected. Rogers is raking in a lot of profit from the Jays via the TV side.

Bloomberg puts the Jays total value at $950-million (U.S.), 12th in the league. The team alone is worth $573-million, 17th in the league. The difference is largely the value of the sports networks Rogers owns, which are fed with Jays content.

Ignoring cash plowed into the Jays, that’s an annual rate of return of 11.5 per cent on the team alone.

That is a much richer valuation than Forbes had granted and a much better return as a result. The magazine had ranked the franchise 27th with a team value of $337-million.

Losing a lot is not helping, but it's not holding the Jays back too much either. The Jays rank ahead of the Washington Nationals, Detroit Tigers and St. Louis Cardinals, teams that have been more successful on the field in recent years.

[Wo1verine]

Yeah, no real surprise here!

They should be amongst the top spending teams in baseball.

[Duffman100]

Go get Cano. ha.

[Skin Blues]

Yeah, no real surprise here!

They should be amongst the top spending teams in baseball.

Why would they spend more money if they're making this much with a crappy product? That's like saying Apple should double the amount they spend on making the iPhone since their profit margins are so huge.

[Wo1verine]

Yeah, no real surprise here!

They should be amongst the top spending teams in baseball.

Why would they spend more money if they're making this much with a crappy product? That's like saying Apple should double the amount they spend on making the iPhone since their profit margins are so huge.

Spend more to make more, i guess

They almost have no choice really with this group and our farm isn't all that great

[hsb]

A lot of naysayers over the years never really understood how big the Toronto market is and how strong the TV numbers the sports teams generate. I've been saying this for a long time now.

[overdose]

Here's a look at where they stack up against the rest of the league

http://www.bloomberg.com/infographics/2013-10-23/mlb-team-values.html

[satyr9]

Here's a look at where they stack up against the rest of the league

http://www.bloomberg.com/infographics/2013-10-23/mlb-team-values.html

There's a lot about that chart that I can't imagine is correct. Granted I didn't RTFA so it's probably obvious to those who did, but for a start, Jays prices are high compared to the league, that's been covered in threads here before, but they under-perform their attendance in relation to revenue at the gate and the beer stand here, which to me doesn't seem likely, unless these numbers are in some way tax and currency adjusted. Even then the differential is pretty extreme.

For instance, by gate receipt and concessions we generate less per person than TB. 44m gate and 12m concessions on 2.5m is $17.60/person gate and $4.80/person concession while TB is at $20.00/person gate and $5.33/person. Compared to NYY with $80.30/person gate and $16.06/person concession. I'm sorry, but going to a game at Rogers Centre is far closer to being as expensive as it is in NY than it would be going in TB (I should probably take anyone other than the Yankees who are obviously in their own class, but still). Unless I've missed all those games where the 100 level was empty and everyone was sitting in the 500's getting a person in the door and eating or drinking for less than 25 bucks on average is simply not possible.

I'm usually the one arguing against inflated valuations on the Jays, but this doesn't seem right. There are some other things that I was surprised by. First, none of the new media deals have kicked in? Or are those deals getting counted in Regional network stuff as most got some cash and some percentage stock in the RSN? Second, I was fairly certain Atl took a bath on media getting locked up long-term a long time ago, but there they are with a bigger chunk that most. Maybe it's prior reporting that's the issue, but every time I see things like this the numbers don't come close to adding up and contradict at least a few things previously reported.