Forbes Florida Marlins Valuation was 97.4% Accurate

I thought I had been following this issue closely, but in preparing a longer post regarding the stadium deal, I came across an amazing number in the Florida Marlins Ballpark Project Report issued on January 22, 2008 by Miami-Dade County Manager, George Burgess. In section 22(i), Community Benefit Obligations, the Florida Marlins assumed team value is stated at $250,000,000.

Forbes estimated the team's value back in March of 2008 at $256,000,000. As part of estimating every MLB team's value, Forbes determines each team's operating profits and then applies its internally developed metrics [i.e. the hard part] to arrive at the team valuations. The point is that the revenues and expenses are the most straight forward aspects of the data they provide. The valuations themselves are subjective, short of a sale which would provide a benchmark. Or in the case of the 2008 Florida Marlins, a publicly issued document which was negotiated between local governments and the Florida Marlins in which the team ties itself to a reasonable valuation.

End of manufactured controversy. In being off just 2.4% [256/250], Forbes basically nailed the number on the head. Contrast that with Marlins President David Samson's comments to the Sun-Sentinel's Juan Rodriguez at he time the Forbes 2008 numbers were publicized:

'Every year I continue to be surprised at the absolute inaccuracy that a so-called reputable magazine is willing to print,' Marlins President David Samson said. 'We've never gotten called by them. We've never been asked to verify, deny, confirm, nothing. It's just a shame their readership is forced to read numbers that aren't true. 'I know the number they have for the Marlins is simply wrong. They have no information of any kind on which to base that article.'

I had earlier posts which delved into why the Forbes numbers are credible and how Mr Samson has the unenviable task of trying to debunk perceptions as to the Marlins recent profitability. No need to speculate now. The Marlins, through Samson, are lying about their numbers and the county manager's memo is the proof.

Public Service Announcement for a Public Servant

In a recent column by Dave Hyde, he notes that in a deposition regarding the Braman lawsuit, Miami-Dade mayor Carlos Alvarez states that he had never seen a Florida Marlins financial statement.

Yes Virginia, there is a P&L.

Please click on the spreadsheet to enlarge or print.

The Marlins Turn a Profit?

Perhaps no franchise has been examined, dissected, and judged more closely under the microscope than the Marlins, and yet the team continues to compete. Nevertheless, I've been alerted to some new happenings on the Marlins business scene, and some of them are quite insulting.

It's not surprising that Forbes rates the Marlins as 30th in franchise value, although David Sampson was still good for one of his obligatory rants. That's not even what caught my eye. It's this, which Reader Nathan pointed out, that disturbs me:

"According to Forbes's numbers, Florida brought in the second-highest profit last year, at $35.6 million. This is a team that not only spent just $30 million on payroll last year, the lowest figure in the National League, but then shipped off 24-year-old superstar Miguel Cabrera and 25-year-old star pitcher Dontrelle Willis, neither of whom was due to make anything like his market value, to lower this year's payroll to $21 million. That's about a third of what they'll get this year in revenue sharing payments and national broadcast money. There's a reason they're worth $40 million less than any other team, and it isn't that Miami is a small market."

Ouch! I knew the Marlins were getting a nice cut of their salary paid by MLB, but not to this extent. The payroll is 1/3 of the OUTSIDE money they receive! With information like this, it's no wonder some people like Imber feel inclined to abandon the team.

Now to the good news. One thing Forbes does not account for is the dreaful lease the Marlins have on Dolphin Stadium. That's the real reason the Marlins are losing some money, but they're clearly still turning a hefty profit.

The better news? As Tom D'Angelo of the Palm Beach Post proudly reports:

"The Marlins can say they had something to do with the Pirates dropping below them for the lowest average paid attendance in the majors. Because just 10,185 fans bothered to watch the Marlins and Pirates on Tuesday at PNC Park, the Pirates' average attendance for their eight home games fell to 14,766. The Marlins are second-lowest with an average of 15,033."

29th never felt so good! As a last note, I leave you with this interesting piece commending those athletic women depicted in "A League of Their Own." Congratulations, ladies, on the Hall of Fame honors!