TEXAS MONEYBALL

The economics of Major League Baseball are whacky, but it looks like owner Tom Hicks has it down. According to this report from Forbes, the Texas Rangers couldn’t manage a winning season in 2005 but they still made lots of money: operating income of $24.7 million on revenues of $153 million. That’s a return of 16 percent, which ain’t shabby. What’s more, Forbes pegs the Rangers’ overall value at $363 million (or more than 14 times cash flow–that’s a sweet multiple!). Compare this to the NY Yankees, who won 95 games and their division but managed to lose more than $50 million for owner George Steinbrenner. No worries, though; even though they are operating “in the red” the Yanks are still baseball’s most valuable franchise at $1.03 billion.

Newsletter

Get a weekly recap in your inbox every Sunday of our best stories from the week plus a primer for the days ahead.

Find It

Search our directories for...

Restaurants

Restaurants

Bars

Bars

Events

Events

Attractions

Attractions

View All

View All

Comments

Comments are closed.