Forbes annual Major League Baseball franchise value rankings have been released for 2014. The Detroit Tigers have an estimated franchise value of $680 million,15th overall in baseball. In Forbes' eyes, the Tigers have increased in value 6% over the past 12 months. Over the past decade, the Tigers have increased in value by $441 million. The estimated worth of the team in in 2005, a year before the Tigers returned to baseball relevance, was just $239 million.
The $680 million valuation as broken down by Forbes:
Portion of franchise's value attributable to revenue shared among all teams - $155 million.
Portion of franchise's value attributable to its city and market size - $277 million
Portion of franchise's value attributable to its stadium - $165 million
Portion of franchise's value attributable to its brand - $87 million
Forbes' full breakdown:
Current Value - $680 million (15th overall)
1-Yr Value Change - 6% (20th)
Debt/Value- 26% (10th)
Revenue - $262 million (8th)
Operating Income - $7.5 million (14th, one of 19 teams in the black)
Of note is the Tigers actually had a positive operating income for the only the second time in six years, estimated to be $7.5 million out of $262 million in 2013 revenue.
The team's payroll is tracking to be a little over $162 million, the fifth highest in MLB. The Associated Press has calculated the payroll of every MLB franchise, posted by ESPN's Darren Rovell.
Complete MLB Opening Day payrolls from @AP pic.twitter.com/wdSubeIpgx— darren rovell (@darrenrovell) March 26, 2014
The Tigers remain one of the crown jewels of Ilitch Holdings. Mike Ilitch bought the team in 1992 for just $82 million. Not a bad return on investment. But Ilitch has done even better with his other professional sports franchise. As of November 2013, the estimated worth of the Detroit Red Wings is $470 million, ninth in the NHL. Ilitch paid a mere $8 million for the team in 1982.
MLB franchise value rankings and the full breakdown of all 30 teams can be found by clicking here.