"Why the difference between our figures and the MLB's? For starters, MLB includes "non-cash" charges in its cash flow numbers. Specifically, the league subtracts ballpark depreciation expenses. For teams that finance their own stadiums, like the San Francisco Giants and Detroit Tigers, ballpark depreciation runs over $5 million per team annually.
I subtract building depreciation in my business too. Are they somehow implying that baseball statiums appreciate in value instead of depreciate. Seems like the Forbes numbers are not up to standard business practices, IMHO. And even if the Forbes numbers are correct, a $75 million profit for Baseball is an absolute joke. These teams are valued at roughly $10 billion, so a $75 million profit represents a whopping 0.75% return! Shoot, the top couple of players earn more than the 30 owners combined and they don't have one penny invested. So yes, the players are WAY overpaid in a real business sense. They simply are not worth what they are paid. Not even close.