MPR’s Lorna Benson interviews Kurt Badenhausen, a senior editor at Forbes Magazine, who estimates the Minnesota Twins are worth $127 million…up from $99 million in the previous year. The jump in value was the second largest in major league baseball. Still, the Twins rank 29th out of 30 teams, ahead of only the Montreal Expos.
Badenhausen says the magazine calculates team worth with a formula that factors in the team's revenue and stadium situation.
KURT BADENHAUSEN: The 2001 season, the Twins were very successful and had a lot of success on the field, which often translate to success off the field. As far as financial success goes, sponsorships were way up. Attendance was way up, translates into higher gate receipts and overall higher total revenues.
LORNA BENSON: So how likely is it if the team were sold that owner Carl Pohlad would actually get 127 million?
KURT BADENHAUSEN: Well, as you know, the Twins are kind of an interesting situation right now. There's with talk of contraction being on the high end, $150 million or so. They're talking about Major League Baseball paying Carl Pohlad.
It really comes down to if they can secure financing for a new stadium, you'd see that value jump dramatically. Right now, the Twins are really in limbo, not knowing if they're going to be contracted or not. They're really a tough team to put a precise value on. But as far as we're concerned, this is what the team's worth to Carl Pohlad right now in the current stadium situation, ignoring the idea of contraction.
LORNA BENSON: So if the team were to get a new stadium, how much would that add to their value?
KURT BADENHAUSEN: In past cases, you've seen teams increase their revenues $40-$50 million from a new stadium in terms of generating money through luxury suites, club seating. So you could conceivably see with a good lease situation, which is ultimately the most important thing if the team's getting all the revenues from the new stadium. You could see the value of the team go up easily 50%, $60-$70 million.
LORNA BENSON: Any recent examples of that?
KURT BADENHAUSEN: Certainly the San Francisco Giants who paid for-- their owner paid for the stadium out of his own pocket, which is the first time in quite a few years, I think in 40 years that an owner has paid for a stadium himself. And he's seen the team-- the value of his team increase dramatically. This year, they're up 14% to $355 million. And since the new stadium has been up, the value of the team has increased over 50%.
LORNA BENSON: Now we haven't heard much lately about Alabama businessman Donald Watkins. He put in a $125 million bid for the Twins. What's his status with trying to buy the team?
KURT BADENHAUSEN: Mr. Watkins seems to want in to Major League Baseball no matter what he can do. He seems to be bouncing around from team to team, seeing who will accept his bid. There's been talk recently that he's moved on to the Anaheim Angels and looking to purchase them from Walt Disney for a bid north of $200 million.
Nobody really knows where the guy's wealth ultimately stacks up. I haven't really heard much recently about his involvement with the Twins. The most important thing probably for the Twins is to resolve the stadium situation. It's going to be hard for them to have somebody to buy the team right now, If Bud Selig is intent on contracting them after the season, if they don't secure a new stadium.
LORNA BENSON: So they wouldn't buy themselves any time if that wasn't resolved?
KURT BADENHAUSEN: No, I don't think so. I mean, if Bud Selig is intent on going forward and contracting the Minnesota Twins, depending on how things work out in Congress, it would seem unlikely that an owner would step forward and buy the team without a new stadium situation intact.
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