ESPN Network: ESPN | NBA.com | NHL.com | ABC | Radio | EXPN | Insider | Shop | Fantasy

SEARCH ESPN

ESPNWeb
SPORTS BUSINESS
Fan Rankings
Franchise Values
Naming Rights
ESPN MALL
TeamStore
ESPN Auctions
SPORT SECTIONS
MLB
   Scores | GameCast
NFL
   Scores
Col. Football
   Scores
NBA
   Scores
Golf
   Scores
Tennis
   Scores
Motorsports
Soccer
Boxing
NHL
M Col. BB
W Col. BB
WNBA
Horse Racing
Recruiting
Sports Business
College Sports
Olympic Sports
Action Sports
ESPNdeportes
ProRodeo
More Sports
Monday, October 28
 
Team could be worth $200 million on market

By Darren Rovell
ESPN.com

Expect the World Series victory to help the value of the Anaheim Angels climb over the $200 million mark.

"The Angels just got more expensive and the outlook is a whole lot brighter," said sports consultant John Moag, chairman and chief operating officer of Moag & Company. "There's going to be a direct economic impact since the World Series victory will put more bodies in the seats."

The Walt Disney Co., which bought a minority percent stake in the team in 1996 and the balance two years later after the death of longtime owner Gene Autry, paid approximately $140 million (not counting an estimated $80 million to renovate Anaheim Stadium into Edison Field). The team's speculated value has been held in check by economic factors in both the country and in the sport. Before the season, Forbes magazine estimated the franchise's value to be $195 million.

It is not known whether Disney will sell the team. In late September, Disney hired Lehman Brothers' sports practice to help look for prospective buyers. Lehman's managing director Sal Galatioto would not comment about the team's newly realized value or about the number of interested bidders.

"I'm going to concentrate tonight on what a great night it is," Disney's chairman and chief executive Michael Eisner told ESPN after Sunday night's victory over the San Francisco Giants, when asked about the company's future plans for ownership. "We don't know where the offseason will take us."

But others feel more sure of Disney's plans to sell the team.

"I know they are going to sell it," said Richard Brown, president and chief executive officer of the Angels from 1990-1996, who is helping prospective buyer Donald Watkins in his bid to buy the team. "All the reasons why Disney wanted to sell it have not disappeared. I would suspect this team will be signed, sealed and delivered to the new owner before the end of the year."

Amount of competition will be the single biggest factor in determining how high a defending World Series champion is worth, Brown says. At least four groups have expressed interest, including Watkins, an Alabama businessman, and Carlos Peralta, a Mexican billionaire and owner of the Mexican baseball team (Tigres de Puebla), who met with Disney ownership on Sept. 29. Former baseball commissioner Peter Ueberroth is also reportedly interested in assembling a group to buy the team. So, too, is Broadway theatre owner Robert Nederlander and family.

Watkins told ESPN.com on Monday that due to the World Series victory he will adjust his bid price for the fifth time since he began concentrating on the Angels in March. Watkins would not comment on specific values, but if a strike occurred, Watkins was reportedly prepared to offer Disney $150 million for the team.

"The team is not going to be undervalued like it was in March," Watkins said. "But that comes with a plus side. You now know that you're definitely dealing with a winner."

"If the price goes beyond $220 million, it will be because of competitive bidding," Brown said. "I think Peter, the Nederlanders as well as Donald, will all think with their heads as far as the number at which they can still make things work. Peralta is the wild card in that he might sit back and say, 'When everyone's done bidding, I'm going to match their price and then some.'"

Forbes ranked Peralta as the world's 351st richest person with an estimated net worth of $1.3 billion.

After Major League Baseball qualifies a potential owner, from the initial papers he or she fills out, Lehman Brothers is then authorized to send a packet containing the team's financial information. Brown says he expects Lehman and baseball executives to move quickly, since most team planning for the next season usually takes place in October and November.

The Angels, whose average attendance increased by 15 percent this season, have drawn an average of 2.3 million fans per season over the last four seasons. The team has a long-term lease through 2017 at Edison International Field, which Disney helped renovate for more than $80 million. Brown says he expects the season ticket base to increase by as much as 3,000, thanks to the World Series championship.

"The ownership will still have to work hard to keep fans in the seats and California is a challenge," Moag said. "But they just won the World Series and I don't know one buyer that doesn't think he can't do better than the seller did."

Moag said the guaranteed labor peace (four years) as well as the new financial structure negotiated in the Collective Bargaining Agreement benefits the Angels. Assuming payroll stays low, the team would receive money due to revenue sharing and would not pay a luxury tax.

According to financial information presented to Congress in December, the Angels received about $9.6 million in revenue sharing dollars last season. The team had the 15th highest payroll in Major League Baseball this season, paying $62.7 million -- up about $13 million from 2001.

Other revenue streams, such as broadcast deals -- which will not reopen for years, according to Brown -- and merchandise opportunities, will not be a significant factor in calculating team value.

"How many rally monkeys can a person buy?" Brown joked. "That is, assuming they're not starting a zoo."

The last time a team was sold so close to a World Series victory was in 1999, when Wayne Huizenga -- who paid $95 million in 1991 for the rights to the expansion team -- sold the 1997 World Champion Florida Marlins to current Boston Red Sox partner John Henry for $150 million. That price was very favorable considering the weak local market and the fact that, the season after the championship, Huizenga slashed payroll so significantly that the team finished with the worst record in the league. After two seasons of ownership, Henry was only able to sell the Marlins to Jeffrey Loria for $158 million.

Darren Rovell, who covers sports business for ESPN.com, can be reached at Darren.rovell@espnpub.com.




 More from ESPN...
World Series coverage
In a thrilling seven-game ...

 ESPN Tools
Email story
 
Most sent
 
Print story
 
Daily email
 



ESPN.com: Help | PR Media Kit | Sales Media Kit | Contact Us | Tools | Jobs at ESPN.com | Supplier Information | Copyright ©2007 ESPN Internet Ventures. Terms of Use and Privacy Policy and Safety Information/Your California Privacy Rights are applicable to this site. Employment opportunities at ESPN.