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Thread: 2013 Forbes Numbers

  1. #41
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    Since it might be obvious I am not an accountant. what % will the state get if Pohlad sells the team?
    DeRosa would make $600,000 as an announcer?

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    mike wants wins (03-27-2014), TheLeviathan (03-27-2014)

  3. #42
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    In the years leading up to the 2006 vote to finance the stadium the Twins operated at a break-even level. If you examine the 2008 Business of Baseball entry on the Twins they made $5 million total from 1999-2006, less than $1 million a year. After they got the vote to build the stadium they have made $175 million from 2007-2013, about $25 million a year. A lot of the anger towards the Twins is in regards to this clear change in business practice immediately after the taxpayers gave them $392 million in public subsidies.

    2008 Forbes
    http://www.forbes.com/lists/2008/33/...ns_330400.html

    2013 Forbes
    http://www.forbes.com/teams/minnesota-twins/

    Target Field Wiki (For Subsidy Amount)
    http://en.wikipedia.org/wiki/Target_Field

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  5. #43
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    So I am going to start this post by stating that I am not an accountant and would appreciate if any accountants could verify or correct what I am going to try to do.

    My understanding is that Rate of Return is calculated the following way:

    Rate of Return = ( (Current Value + Operating Income) - Initial Investment ) / Initial Investment
    http://en.wikipedia.org/wiki/Rate_of_return#Return

    Change in Twins franchise value since 2007 = $389 million
    Operating Income since 2007 = $175 million
    http://www.forbes.com/teams/minnesota-twins/

    Initial Investment = $168 million spent by Twins on Target Field
    http://minnesota.twins.mlb.com/news/...=.jsp&c_id=min

    235% = ( (389 + 175) - 168 ) / 168

    That is over 7 years though so if you divide that number by 7 you get an annual return of 33.5%.

    Does this look right?
    Last edited by jharaldson; 03-27-2014 at 03:48 PM. Reason: Comment suggestion

  6. #44
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    Quote Originally Posted by jharaldson View Post
    So I am going to start this post by stating that I am not an accountant and would appreciate if any accountants could verify or correct what I am going to try to do.

    My understanding is that Rate of Return is calculated the following way:

    Rate of Return = ( (Current Value + Profit) - Initial Investment ) / Initial Investment
    http://en.wikipedia.org/wiki/Rate_of_return#Return

    Change in Twins franchise value since 2007 = $389 million
    Profit since 2007 = $175 million
    http://www.forbes.com/teams/minnesota-twins/

    Initial Investment = $168 million spent by Twins on Target Field
    http://minnesota.twins.mlb.com/news/...=.jsp&c_id=min

    235% = ( (389 + 175) - 168 ) / 168

    That is over 7 years though so if you divide that number by 7 you get an annual return of 33.5%.

    Does this look right?
    Where are getting the Profit since 2007? Forbes doesn't list profit, the list operating income which is NOT profit.

  7. #45
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    Quote Originally Posted by SweetOne69 View Post
    Where are getting the Profit since 2007? Forbes doesn't list profit, the list operating income which is NOT profit.
    In the wikipedia entry I looked at they used Dividend instead of profit. The Dividend does not include the tax calculation in it which makes it similar to the operating income. I will edit my post to change the name from profit to operating income though. Thanks!

  8. #46
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    You don't exactly divide, because of compounding.....let's put it this way, the return on the Twins has outpaced most other investments they could have made.....
    Lighten up Francis....

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