Paulwny
03-27-2002, 07:03 AM
Yesterday's on-line chat with Bud:
Michael W. from Port Washington, NY:
If Major League Baseball is in such financial trouble, how do you explain the fact that the value of all the Major League franchises continue to go up?
Selig: Well, let me suggest to you that all the asset values of teams don't go up. I know that people use the sale of the Boston Red Sox as the prime example. I want to submit to you that the Red Sox were aberrational. We have two or three franchises, quite frankly, who's asset value is high. The problem is it has no relation to the other 27. And in fact, we've had some franchises for sale for quite a long time, like an Anaheim, and we've had a very hard time finding a buyer. You must remember that the Red Sox franchise, was aberrational because it included NESN, the New England television network, it included Fenway Park and their land around it. So it had two component parts that are very, very valuable. And that, frankly, is what took that value of that franchise and moved it up to the level that it did. We have disparity, quite candidly, in the franchise values just like we do everywhere else. And so you can take two or three franchises and yes, they will do quite well. But unlike other sports, most of our franchises have not had an increase in value, and in fact in some cases have deteriorated. That is not true, for instance, in the National Football League where their economic system has really ensured that all teams' asset value have gone up.
Michael W. from Port Washington, NY:
If Major League Baseball is in such financial trouble, how do you explain the fact that the value of all the Major League franchises continue to go up?
Selig: Well, let me suggest to you that all the asset values of teams don't go up. I know that people use the sale of the Boston Red Sox as the prime example. I want to submit to you that the Red Sox were aberrational. We have two or three franchises, quite frankly, who's asset value is high. The problem is it has no relation to the other 27. And in fact, we've had some franchises for sale for quite a long time, like an Anaheim, and we've had a very hard time finding a buyer. You must remember that the Red Sox franchise, was aberrational because it included NESN, the New England television network, it included Fenway Park and their land around it. So it had two component parts that are very, very valuable. And that, frankly, is what took that value of that franchise and moved it up to the level that it did. We have disparity, quite candidly, in the franchise values just like we do everywhere else. And so you can take two or three franchises and yes, they will do quite well. But unlike other sports, most of our franchises have not had an increase in value, and in fact in some cases have deteriorated. That is not true, for instance, in the National Football League where their economic system has really ensured that all teams' asset value have gone up.