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OC Register: What is Southern California’s most valuable pro team?


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    The Lakers are SoCal’s MVP — Most Valuable Property — worth $3.3 billion, a value that’s No. 5 among all pro sports teams and second in the NBA. That valuation was up $300 million in a year or 10 percent. Los Angeles Lakers’ Tyson Chandler (5) dunks the ball in front of Brooklyn Nets’ Jarrett Allen (31) during the first half of an NBA basketball game Tuesday, Dec. 18, 2018, in New York. The Nets won115-110. (AP Photo/Frank Franklin II)

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    The return of the Rams to Los Angeles was good for business. The team is valued at $3.2 billion, No. 4 in the league and No. 7 in pro sports. That’s up $209 million in a year or 7 percent. (Photo by Scott Varley, Daily Breeze/SCNG)

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    A World Series run for baseball’s Blue Crew was a money maker. The team is worth $3 billion, No. 2 in the league and No. 11 in pro sports. That’s up $248 million in a year or 9 percent.Los Angeles Dodgers Yasiel Puig, #66, looks to the sky after hitting a 3-run homer in game four of the World Series at Dodger Stadium on Saturday, October 27, 2018 in Los Angeles, California. (Photo by Keith Birmingham, Pasadena Star-News/SCNG)

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    It’s unclear if the move up the 5 freeway was a good financial idea. Forbes says the Chargers’ value was stagnant in the year at $2.28 billion, No. 22 in the league and No. 33 in pro sports. Revenues run $346 million and income’s $48 million with a 14 percent margin. All rank No. 4 in the region. Seen here, Los Angeles Chargers running back Melvin Gordon (28) scores a touchdown in the third quarter at the StubHub Center in Carson on Saturday, Dec. 22, 2018. (Photo by Scott Varley, Daily Breeze/SCNG)

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    Playing the Lakers’ shadow is a decent business. The Clippers are worth $2.15 billion, No. 8 in the league and No. 35 in pro sports. That’s up $141 million in a year or 7 percent. (AP Photo/Reed Saxon)

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    Having baseball’s top player — Mike Trout — hasn’t been a huge boost to this Anaheim-based franchise’s net worth. And one playoff appearance in nine years doesn’t help. A value of $1.8 billion — No. 8 in baseball and No. 46 in pro sports — is up $52 million in a year or a subpar 3 percent. The Los Angeles Angels Mike Trout celebrates in the dugout with teammates after scoring on an Albert Pujols double during the first inning at Angel Stadium in Anaheim, CA on Tuesday, August 22, 2017. (Photo by Kevin Sullivan, Orange County Register/SCNG)

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    Being San Diego’s only “home” team — minus the Chargers — was good for values. The Padres’ $1.26 billion worth may be No. 17 in baseball and only No. 69 in pro sports, but that’s up $145 million in a year or 13 percent — the biggest percentage jump in Southern California. (AP Photo/San Diego Union-Tribune, EarHoward Lipin)

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    Ice hockey in this warm climate works financially for the Kings. The team is valued at $810 million, a surprisingly strong No. 6 in the NHL though No. 98 in pro sports. That’s up a noteworthy $60 million in a year or 8 percent. The Los Angeles Kings host Pittsburgh at the Staples Center in Los Angeles Thursday, January 18, 2018. (Photo by Thomas R. Cordova Daily News/SCNG)

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    The billionaire Samuelli family owns the Anaheim team for more than cash flow. Despite one of the league’s top win-loss records in the past decade, the team’s value was unchanged in the past year at $460 million, a middling No. 18 in the league and a low No. 110 out of 123 pro teams. Arizona Coyotes defenseman Ilya Lyubushkin, left, checks Anaheim Ducks left wing Andrew Cogliano into the glass during the second period of an NHL hockey game in Anaheim, Calif., Saturday, Dec. 29, 2018. (AP Photo/Chris Carlson)

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The addition of two professional football teams to Southern California’s already crowded entertainment options seemingly has not hurt values of the nine franchises in four major leagues that call the region home, if Forbes magazine is correct.

I filled my trusty spreadsheet with sports business data from Forbes and learned these nine local teams are valued at a combined $18.3 billion, up $1.16 billion or 6.8 percent over 2017 measurements. Remember, two National Football League teams relocated to Los Angeles in 2017 — the Rams, from St. Louis, and the Chargers, from San Diego.

Pro sports values are on an overall upswing, according to Forbes’ math. The 123 teams in the four major pro leagues were collectively valued at $197 billion, up $14.8 billion in a year. That’s equal to an 8.1 percent one-year gain — better than the local teams’ average appreciation.

Please note that recent popularity swings, wins and losses, and/or managerial or roster moves may not be fully reflected in the data. Forbes valuations are not real-time measures — basketball’s report was done in the middle of last season; football and baseball early in their respective 2018 seasons; and hockey’s study was recently released.

But also ponder that pro sports teams aren’t small businesses.

Local franchises had collective revenues estimated at $2.79 billion and $448 million in total operating incomes in the respective years ended in 2018. That suggests Southern California teams are proportionally less profitable, as those tallies translate to average profit margins of 16 percent vs. 18 percent among the 123 pro teams in the four leagues.

Now, pro sports leagues, as businesses, each look very different by Forbes’ math. Simply put: Football is huge, hockey is tiny and baseball and basketball fit in between.

Take the average league-wide team values: football is No. 1 at $2.5 billion, followed by the National Basketball Association at $1.65 billion; Major League Baseball at $1.64 billion and the National Hockey League at $620 million.

Or peek at revenues: top average sales were in football ($405 million per team) then baseball ($315 million), basketball ($246 million) and hockey ($154 million).

Expenses such baseball’s long season and the lower stadium costs of indoor sports juggle the rankings by “profit margin” — operation income vs. sales: football’s still No. 1, averaging 23 percent, then there’s basketball at 21 percent and hockey at 16 percent before baseball’s 9 percent.

Knowing that context, here’s a look at how Forbes values local pro sports franchises, and how the magazine sees revenues and operating income, presented in order of valuation.

#1 Lakers

“Showtime” is SoCal’s MVP — Most Valuable Property — worth $3.3 billion, a value that’s No. 5 among all pro sports teams and second in the NBA. That valuation was up $300 million in a year or 10 percent.

Note: This valuation was done last season before the team acquired superstar LeBron James.

Revenues were pegged at $371 million and were No. 2 for sales dollars in the region. Income was $136 million, tops in Southern California. And the estimated operating margin was sky-high 37 percent, easily No. 1 in the region.

#2 Rams

The return of the Rams to Los Angeles was good for business.

The team is valued at $3.2 billion, No. 4 in the league and No. 7 in pro sports. That’s up $209 million in a year or 7 percent.

Rams’ revenues run $366 million, No. 3 in the region. Income is at $68 million, Southern California’s No. 2. That puts margins at 19 percent, No. 3 in the region.

#3 Dodgers

A World Series run for baseball’s Blue Crew was a money maker.

The team is worth $3 billion, No. 2 in the league and No. 11 in pro sports. That’s up $248 million in a year or 9 percent.

The team generated the region’s most revenue ($522 million) and was second in income ($68 million). But that translates to a margin of 13 percent, No. 6 in the region.

#4 Chargers

It’s unclear if the move up the 5 freeway was a good financial idea.

Forbes says the Chargers’ value was stagnant in the year at $2.28 billion, No. 22 in the league and No. 33 in pro sports.

Revenues run $346 million and income’s $48 million with a 14 percent margin. All rank No. 4 in the region.

#5 Clippers

Playing the Lakers’ shadow is a decent business.

The Clippers are worth $2.15 billion, No. 8 in the league and No. 35 in pro sports. That’s up $141 million in a year or 7 percent.

Revenues at $257 million, No. 5 in the region. Income of $35 million, Southern California’s No. 6. Margin of 14 percent, No. 5 locally.

#6 Angels

Having baseball’s top player — Mike Trout — hasn’t been a huge boost to this Anaheim-based franchise’s net worth. And one playoff appearance in nine years doesn’t help.

A value of $1.8 billion — No. 8 in baseball and No. 46 in pro sports — is up $52 million in a year or a subpar 3 percent.

Revenues at $334 million ranks as Southern California’s No. 5. Income of $25 million and a 7 percent margin were both next-to-last in the region.

#7 Padres

Being San Diego’s only “home” team — minus the Chargers — was good for values.

The Padres’ $1.26 billion worth may be No. 17 in baseball and only No. 69 in pro sports, but that’s up $145 million in a year or 13 percent — the biggest percentage jump in Southern California.

It’s a relatively small business: Revenues at $266 million are Southern California’s No. 6. Income of $26 million and a margin of 10 percent, were both No. 7 regionally.

#8 Kings

Ice hockey in this warm climate works financially for the Kings.

The team is valued at $810 million, a surprisingly strong No. 6 in the NHL though No. 98 in pro sports. That’s up a noteworthy $60 million in a year or 8 percent.

Revenues at $193 million, No. 8 in the region. Income of $44 million, Southern California’s No. 8. But an eye-catching 23 percent margin is No. 2 in the region.

#9 Ducks

The billionaire Samuelli family owns the Anaheim team for more than cash flow.

Despite one of the league’s top win-loss records in the past decade, the team’s value was unchanged in the past year at $460 million, a middling No. 18 in the league and a low No. 110 out of 123 pro teams.

Revenues were only $134 million as Forbes says the team had a lost $2 million in operating income — Southern California’s worst pro sports financial performance.

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I am assuming that this article includes the real estate equity a team owns. Like owing their stadium out right, and owning their spring training complex. On that assumption, i would assume that the Dodgers equity in owning their stadium might account for at least $1.5 billion of that $3 billion shown in the article. Take away that $248 million increase over the last year, and they are pretty much the same position as the Angels. I don't know if the Angels and Dodgers own their Spring Training facilities. Probably lease them. I know the Dogs share their ST complex.

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