Yankees are Forbes Most Valuable MLB Franchise
The Yankees have topped Forbes' list of Most Valuable MLB Franchises. Peter Foley/Shutterstock.

In the world of sports, according to Forbes, the New York Yankees are second only to the Dallas Cowboys in terms of total dollar value. As far as MLB franchises go, the New York Yankees have topped Forbe's list since 1998.

Forbes releases their valuations annually, and it's always interesting to see their data, especially since most MLB franchises do not publicly release their complete financials. The few who do are publicly owned instead of privately owned.

The brains at Forbes, however, employ a methodology for calculating total value. Forbes explains their methodology (to a degree), and here's a portion of that explanation.

Our team values are enterprise values (equity plus net debt) calculated using a multiple of revenue. The multiples are based on historical transactions and the future economics of the sport and team. Revenue and operating income (earnings before interest, taxes, depreciation and amortization) measure cash in versus cash out (not accrual accounting) for the 2019 season.

Their valuations are based, in part, on a formula of one-year value changes year-over-year, debt to value ratio, as well as known revenue dollars and operation costs. Forbe's complete MLB valuations can be found here.

The Forbes article further explains how media deals play into valuations, and how the current Coronavirus Pandemic is having a devastating impact on 2020 MLB revenues. Even though MLB still hopes to get in at least 100 games this year, revenues from gate receipts and even local TV deals could take a huge hit in some markets. For example, Forbes estimates the Atlanta Braves, as one example, could lose up to $60 million.

After all the data was crunched, Forbes valued the New York Yankees at $5 billion, a 9% rise from 2019. The LA Dodgers took the No. 2 spot with a valuation of $3.4 billion, and then the the Red Sox ($3.3 billion), Cubs and Giants ($3.1 billion) rounded out the top 5.

Check out where your favorite team valuation stands, according to Forbes at least, and let's all hope our favorite teams can weather the storm in 2020.