Over the weekend, the Financial Times reported that the New York Times is finding that their 17.75% stake in the Red Sox is worth less than they originally thought. Word on the Street as well as reported in the article is that the ownership interest may go for only $50 million. This would value the franchise at just under $282 million. There’s a good argument, of course, that the pricing of a minority stake understates the value of controlling the whole. However, even taking this into account, the value of the team is far below the theoretical number of $833 million recently produced on Forbes’ website. Without reigniting the whole mark-to-market versus value pricing debate, it’s pretty clear that asset deflation has had an impact.
On the other hand, if you were at Fenway on Sunday, enjoying the last of an unusually warm April weekend, and watched the Red Sox sweep their series against the Yankees for a 10-game winning streak, there’s only one value you’d place on this team: “priceless.”