FORBES magazine has released its latest report on Major League Baseball team values. The New York Yankees are listed as the most valuable team at $1.6 billion. Winning the World Series and playing in a new stadium probably played a role in the Yankees 7% increase in net worth from the previous year. 

The MLB team with the lowest value is the Pittsburgh Pirates. According to FORBES, the Pirates earned $15.6 million in ’09. However, they received $40 million in revenue sharing from their counterparts. According to FORBES, the Pirates are worth $289 million. Ironically, they are hosting an upcoming Career Fair on April 16, 2010. Maybe some of its new employees can bring some spark to the organization.

“When you talk about adding value, from a media standpoint, the Boise States and the Utahs add very little”

Barry Frank, IMG Media Consultant

This statement was made in the January 25, 2010 edition of the Sports Business Journal. The article was in regards to the revenue distribution system of the BCS (Bowl Championship Series) and whether it needed to be adjusted.

The summary of the article leaves the conclusion that there will not be a playoff system in college football in the near future. Reason: There is too much money involved and potentially lost if adjustments are made. The negotiation of the BCS TV rights deal and future negotiations are at the center of the disparity debate.

“Those teams have certainly performed well, but you’re talking about adding value. The real question is whether including those conferences when you negotiate a TV contract adds to the willingness of the network to increase the bid. I don’t think we’ve seen evidence that that’s true.”

Harvey Perlman, Chancellor-University of Nebraska, Chairman-BCS Presidential Oversight Committee

The issue here is whether the WAC and Mountain West conference champions (Ex. Boise State and TCU) should get the same payout distribution preferences as the Florida’s, Alabama’s, and USC’s in BCS rankings (or rather the SEC, PAC-10, etc..). Mr. Perlman’s issue is whether ESPN would pay the NCAA $125 million a year for the BCS TV rights if these conferences are given the same consideration as the other conferences. The answer is no.

Although Boise State and TCU were both undefeated this past season, they would not draw the amount of viewers that a Florida vs. USC provide. When that happens, ESPN cannot get a competitive rate from advertisers. As a rights holder, ESPN’s goal is to make over the $125 million paid by selling advertising. Ex. Would a Coca-Cola pay $750,000 for a 40-sec. ad spot during a Boise State vs. Utah game? The answer is no. This is no reflection on those teams and its players. It has everything to do with viewership. They play no games on national TV during the regular season. Therefore no relationship is established between these conference teams and college football fans. 

This leads the TSR staff to the conclusion that there will not be a playoff system in the near of distant future. Money and viewership seems to have a strong grip on the decision making process, which is not surprising.

“We need to make significant changes to deal with the very substantial losses that are in the  hundreds of millions of dollars.”

David Stern, Commissioner of the National Basketball Association

The TSR staff is as concerned about the financial success of professional sports leagues as we are about helping people to get employment with them. The recent statement made by Commissioner Stern should be one of concern for everyone (Players, Owners, Employees, Content Providers, Concessionaires, etc…).

We offer a solution that would reduce the amount of annual losses and help to increase revenue. The solution will return the games’ popularity. A collaborative effort between the union and the league owners is necessary for this to work.

SOLUTION: A player is eligible to participate in the NBA draft only after 3 years since graduating from high school.

This solution would actually benefit the NBA and the NCAA. If implemented, the number of “loyal fans” will rise. The NCAA would retain its star players for a longer time period. This would re-create the great rivalries of the ’80′s and ’90′s (UNC vs. DUKE, Georgetown v. Syracuse, Michigan v. Michigan State). There are barely any second looks when these teams compete against one another today. In college and the NBA, most of the focus is on the individual players than on the team (In college basketaball, this is very evident during March Madness).

All ”team” rivalries are bound to have star players. The longer they remain in college the stronger the relationship between basketball fans. This relationship will continue up to the NBA draft while in the NBA. Each “loyal fan” could represent over $10,000 in annual revenue for the NBA through various means (NBA sportswear, cable subscriber, ticket purchaser, NBA.com traffic, etc..). The attention and focus on the individual player and the NBA as a whole will continue to grow. It would also re-create the former rivalries amongst NBA teams as well.

When the Celtics won the title a few years ago in beating the L.A. Lakers, the attention leading up to and during the Finals series focused on the past series between both teams, the players and fans. When both teams play now the focus is on individual player achievements against their opponent (Kobe v. Ray Allen, Paul Pierce). What happens when the star players are injured? The fans turn their attention to another entertainment venue.

The NBA can return to prosperity. Many will not be excited about this proposal if implemented, especially the college basketball players. However, in the long term it will benefit them and the NBA.