The Pirates’ value has surged 28 percent in the past year from $975 million to $1.25 billion, according to an estimate released Tuesday by Forbes. That value ranks No. 17 in Major League Baseball and No. 3 in the National League Central division behind the Chicago Cubs ($2.7 billion) and St. Louis Cardinals ($1.8 billion.)
Forbes staff writer Mike Ozanian, who authored an analysis, said the Pirates’ soon-to-expire television contract with Root Sports accounted for much of the boost, significantly more than the average gain for MLB teams of 19 percent.
“The Pirates are up more than the league average because when they get their next TV deal it should be worth considerably more than the current one,” Ozanian said in an email.
The Pirates are in the eighth year of 10-year local television contract with Root Sports that the Post-Gazette has reported pays the team about $20 million per year. Team executives have disputed that figure in the past, saying it’s higher, but have declined to provide their own.
Forbes reported the team brought in $265 million in revenue and $51 million in operating income in 2016. Those figures rank Nos. 19 and 8 in MLB, respectively, and are both all-time team highs for the Forbes calculations. For reference, the team earned $139 million in revenue and $17.6 million in operating income in 2008, according to Forbes. The Pirates spent $115 million in player expenses, though their opening day payroll of $91.5 million is down 7.4 percent from $98.8 million in 2016.
MLB teams often question the accuracy of the Forbes revenue figures, which some executives have argued are estimates based on incomplete data. The Pirates did not immediately respond to request for comment.
Locally, Forbes estimates the Pirates are more valuable than the Penguins ($570 million) and less valuable than the Steelers ($2.25 billion). Forbes conducted its NHL valuation list in November 2016 and its NFL valuation list in September 2016.
Forbes values the average MLB team at $1.54 billion, with teams getting big boosts from local television contracts and from stakes in BAMTech and Major League Baseball Advanced Media, which can be worth an estimated $400 million to 500 million per team.
The New York Yankees lead MLB with an estimated value of $3.7 billion. Five other teams are valued at $2 billion or more. The Milwaukee Brewers ($925 million) and Cincinnati Reds ($915 million) — both of which compete with the Pirates in the NL Central — ranked Nos. 26 and 28, respectively, in Forbes’ value rankings.
Adam Bittner: abittner@post-gazette.com and Twitter, @fugimaster24.
First Published: April 11, 2017, 10:32 p.m.
