Thursday, October 7, 2010

How Much is too Much: Part 2

So I decided to do a bit more research on team finances (special thanks to Forbes magazine's business of baseball special)

The Blue Jays were ranked by Forbes as the 26th most valuable (or 5th LEAST valuable) franchise in the MLB, ahead of only the Marlins, Rays, A's and Pirates, in that order.

The major shortcomings were the lack of paid attendance, and the revenue that is declared as part of their media contracts. (Also, the stadium rights agreement pays less than other teams receive)

All of this is accurate based on Generally Accepted Accounting Practices (GAAP) as the Rogers Corporation chooses to minimize the value of the Jays as an ASSET, to increase their profitability for both the media and cable divisions. It also helps the corporate arm control their debt-equity ratio.

I am now determined to estimate the potential revenue that the Jays bring to the Rogers Corporation with the hope of building an even better case for a $150 Million payroll. Check back later.

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