Dodgers See Modest Growth in Value
Kirk McCormick serves as the Executive Pastor at Royal Palm Church in Lake Worth, Florida. In addition to his service in the ministry, Kirk McCormick is a fan of the Los Angeles Dodgers. In the most recent Forbes valuation rankings, the Los Angeles Dodgers continue to remain the second most-valuable baseball franchise, trailing only the New York Yankees. Forbes estimates the Dodgers’ net worth at $2.5 billion, which is an increase of $100 million above last year’s figure. One of the most vital elements of that valuation is the 25-year, $8.35 billion TV deal the team signed with Time Warner Cable in January 2013. Breaking down the figures, the team's value is derived from a combination of four factors: its sport value ($433 million), market value ($1.263 billion), stadium ($417 million), and brand value ($405 million). The team has seen modest growth in its value since NBA legend Magic Johnson and his investment group purchased the team for $2 billion in 2012. At the time, it was the highest purchase price ever for a sports franchise in North America. Even with a lucrative cable television contract and a highly valuable brand, however, the Dodgers have financial issues that they will likely to address in the upcoming future. In 2015 the Dodgers set the dubious record in becoming the first team with payroll exceeding $300 million in a single season. To make matters worse, $95 million of that figure was paid to players who didn’t so much as play an inning for the team that year. The team pulled in revenue of $438 million last season, but still ended with a net loss of $73.2 million for the year. Even with those negatives, the Dodgers are still a highly valuable commodity in terms of merchandise and brand recognition. Once the team gets its payroll issues under control, it will become highly profitable for the Johnson-led investment group.







