| Summary: | 碩士 === 中原大學 === 會計研究所 === 94 === The Cleveland Indians Professional Baseball Team was the first baseball corporation who is publicly listed in the Nasdaq market. Their initial public offering (IPO) price during the underwriting period was at $15 per share for issuing four million shares. This public offering creates a new stage for the professional sports industry. Since few studies in the past targets on the publicly listing companies of the sports industry, this work uses various methods to find the reasonable theoretic price for a professional sports team.
This study starts to introduce the background and development of the MLB., including a description of the professional sports industry and sports economics in the U.S.. Then this work examines various valuation models for professional baseball team. The Cleveland Indians baseball team of MLB is used as an example to show which valuation model is the best one to pricing a professional baseball team. The models employed in this investigation are Income Approach (DCT), Market Approach (P/E, P/S and P/BV), and Real Option Pricing model. The theoretic prices obtained from the above methods are significantly different from each other. However, the theoretic price obtained by these five models are much higher than the initial offering price of Cleveland Indians. The possible explanation is that there was no previous example for the IPO of a professional sports team and the analysts expected that the illiquidity of the common stock of this professional sports company.
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