Sox worth $300 million after title, Forbes says

[rangercal]

http://www.suntimes.com/output/worldseries...soxworth31.html

 

Sox worth $300 million after title, Forbes says

 

October 31, 2005

 

BY ANDREW HERRMANN Staff Reporter 

 

The White Sox World Series victory was more than just a win on the field: The championship boosted the team's value to more than $300 million, says Forbes magazine.

 

Not a bad investment for what began with a $20 million buy-in some 25 years ago.

 

Forbes, using available business data and expert analysis, annually estimates the worth of major league baseball teams. In the spring, the business magazine pegged the value of the team at $262 million. Calling it "among the most poorly managed franchises in baseball," Forbes noted low attendance and general failure on the field. That figure was 21 percent lower than the league average.

 

Now, though, winning changes things.

 

"All told, the boost in revenue should propel the value of the White Sox to more than $300 million by next season," writes Michael K. Ozanian, who covers pro sports for Forbes. Ozanian cites an increase in demand for tickets and a hike in sponsorship fees.

 

Team won't comment on figure

 

 

 

Sox chairman Jerry Reinsdorf and co-chairman Eddie Einhorn headed a limited partnership that bought the team in 1981 for $20 million from a group of investors led by Bill Veeck. Others on the current Sox board include lawyer Allan Muchin, bankers Sanford Takiff and Burton Ury; traders Larry Pogofsku, Lee Stern and Fred Brzozowski; and real estate exec Judd Malkin. Rarely is there turnover in ownership. When there is, usually it's because a partner has died, said Sox spokesman Scott Reifert.

 

Reifert said the team doesn't comment on Forbes' team value reports, dismissing them as "best guesses."

 

"We don't put a lot of credence in them," Reifert said Sunday.

 

Regardless, Reifert said, Reinsdorf is "very much on the record that he does this because this is in his blood, not necessarily to make money. What he wanted out of it is a world championship."

 

Some years the team makes money, other years it doesn't, said Reifert, adding it was "too early to tell" how the team did financially this year -- a season that saw a 17.6 percent increase in attendance over last season, the largest in the American League.

 

Cubs worth a lot more

 

 

The government-owned Sox stadium opened in 1991, paid for with revenue generated by a 2 percent increase in the tax on Chicago hotel rooms. The city and state each contribute $5 million annually.

 

Under a 1988 pact that prevented the team from moving to Florida, the Sox do not share ticket revenue, concessions, souvenir sales or parking during postseason play with the Illinois Sports Facilities Authority, which owns U.S. Cellular Field. During the season, the Sox pay $1.24 million in rent, plus $4 for every full-priced ticket sold above 1.5 million and $1.50 for every nondiscounted ticket above 2 million.

 

The value of the Sox may yet again be adjusted to reflect the sale price of the Washington Nationals, priced at $450 million.

 

However, the team falls short when it comes to its crosstown rival. The Sox, even at $300 million, will still trail the Cubs, which Forbes values at $398 million.

 

 

 

$ox Owner$hip: 1899 to present

*1899-1931: Charles A. Comiskey, known as the "Old Roman.'' He was son of Ald. John Comiskey; moved his St. Paul Saints to Chicago in 1899.

 

*1931-1939: John Louis Comiskey, Charles' only son. Inherited team; died at age 54 leaving team to wife.

 

*1939-1956: Grace Reidy Comiskey, wife of John Louis. First National Bank -- the executor of John Louis' will -- reveals the club lost $675,029 over previous 11 years and tried unsuccessfully to force sale; Grace gave 54 percent of team to daughter Dorothy, 46 percent of team to son Charles II.

 

*1956-1959: Charles Comiskey II and Dorothy Comiskey Rigney. Dorothy, married to former pitcher John Rigney, and Chuck battled in court for control of the team. Dorothy would sell her 54 percent to Bill Veeck in 1959 for a reported $2.7 million.

 

*1959-1961: Bill Veeck, former owner of Cleveland Indians, St. Louis Browns. Team won 1959 pennant; illness prompted sale of shares to Arthur C. Allyn Jr. for $3.25 million in 1961.

 

*1961-1969: Arthur C. Allyn Jr., La Salle Street broker. Saw part of value in team was in tax breaks; bought remaining shares from Chuck Comiskey in 1962; turned down $13 million offer for team and, instead sold it to brother John W. Allyn.

 

*1969-1975: John W. Allyn. Cash woes almost forced missed payroll; sold controlling interest to Bill Veeck for $10 million but remained stockholder until death in 1979.

 

*1976-1980: Bill Veeck back for second time.

 

*1981-current: Jerry Reinsdorf and Edward M. Einhorn. Reinsdorf, real estate investor, and Einhorn, TV exec, lead investor group that bought team for $20 million. Forbes estimates its value at more than $300 million.

 

 

Sources: White Sox Encyclopedia by Richard C. Lindberg; news archives

Edited October 31, 2005 by rangercal

[daa84]

extremely interesting read...thanks for the note

[southsider2k5]

So a World Title is worth $40 million in total value. It will be interesting to see their total revenue figures for 2005.

[Steff]

So a World Title is worth $40 million in total value. 

 

 

The value is only what someone would be willing to pay, which is likely why Scott says they don't pay attention to those figures.

[Milkman delivers]

So, what we're saying is we'll have the highest payroll in baseball history next year?

[Chisoxfn]

The value is only what someone would be willing to pay, which is likely why Scott says they don't pay attention to those figures.

Ya, those numbers really don't mean much anything until the owners want to put it up for sale and sell it at a price near them.

[bighurt574]

So, what we're saying is we'll have the highest payroll in baseball history next year?

 

The franchise is worth $300 million, that's a far cry from having $300 million in annual revenue.

[Felix]

Note the green..