The Price is Right

NEW YORK, NEW YORK - The New York Yankees were sold on this date in 1945 for $2.5 million to Larry MacPhail, Dan Topping and Del Webb. Compare that sale to the $900 million sale rice of the Chicago Cubs in the summer of 2009. Even comparing for inflation, major league baseball teams command significantly greater dollars these days.

This list from Forbes Magazine shows the estimated value of each team as of April 2007 (note that it had the Cubs undervalued):

1. New York Yankees $1,200,000,000
2. New York Mets $736,000,000
3. Boston Red Sox $724,000,000
4. Los Angeles Dodgers $632,000,000
5. Chicago Cubs $592,000,000
6. St. Louis Cardinals $460,000,000
7. San Francisco Giants $459,000,000
8. Atlanta Braves $458,000,000
9. Philadelphia Phillies $457,000,000
10. Washington Nationals $447,000,000
11. Houston Astros $442,000,000
12. Seattle Mariners $436,000,000
13. LA Angels of Anaheim $431,000,000
14. Baltimore Orioles $395,000,000
15. Chicago White Sox $381,000,000
16. San Diego Padres $367,000,000
17. Texas Rangers $365,000,000
18. Cleveland Indians $364,000,000
19. Detroit Tigers $357,000,000
20. Toronto Blue Jays $344,000,000
21. Arizona Diamondbacks $339,000,000
22. Colorado Rockies $317,000,000
23. Cincinnati Reds $307,000,000
24. Oakland A's $292,000,000
25. Minnesota Twins $288,000,000
26. Milwaukee Brewers $287,000,000
27. Kansas City Royals $282,000,000
28. Pittsburgh Pirates $274,000,000
29. Tampa Bay Rays $267,000,000
30. Florida Marlins $244,000,000

Comparing the cost of living in 1945 with today, the average new home back then cost about $4,600. The same home in 2008 would cost about $280,000 - that's an increase of 61 times. A gallon of gas in 1945 was 15¢. At its worst, gas got to about $3.80 last summer. That's an increase of 25 times. But the value of the Yankees is 480 times greater than it was in 1945. The increase in value is staggering even for middle of the pack teams, such as the Chicago White Sox. Even if the White Sox were worth $2.5 million in 1945, which they most likely were not, the franchise's value as of 2007 is 152 times greater.

Contributing Sources:
Forbes Magazine
The New York Times, January 26, 1945
Energy Information Administration
US Census Bureau (home prices)

by Ann Saphir, ChicagoBusiness, July 6, 2009