The Los Angeles Angels of Anaheim are off to a solid start on the field this season. But President Dennis Kuhl sees the big picture when he looks at the baseball team.
The Angels have more than doubled in valuation since owner Arturo “Arte” Moreno bought the team from Walt Disney Co. in 2003 for $184 million.
The team is drawing more than 3 million fans per season to Angel Stadium of Anaheim, something not seen since the early 1960s.
Last year’s revenue came in at $187 million, up 4% from a year earlier, with ticket sales at $65 million. In merchandise sales, the Angels last year moved up from 24th in the league to No. 8, according to Forbes.
Then there’s the team’s $500 million contract with Fox Sports TV.
Kuhl, a longtime billboard colleague and former University of Arizona fraternity brother of Moreno’s, recently talked with the Business Journal’s Dan Beighley about the business side of the team.
Could you give a rundown of the business side,advertising, ticket sales, merchandising,as the season gets under way?
We have developed new advertisers and incorporated one into establishing two restaurants in the stadium, that being Ruby’s (Diner Inc. of Newport Beach). We have added a new state of the art merchandise store to the terrace level. Season tickets are at about the same level as the previous year with group sales showing significant increases.
The team’s growth in TV, advertising, overall revenue and valuation since 2003 is impressive. How have you and Arte been so successful in generating more out of the franchise?
The growth in TV has gone from the broadcasting of 90 games in 2003 to 162 games in 2004, 2005, 2006 and 2007. These additional games have enabled us to be in more households and on a consistent basis over the course of the season.
We started by evaluating all our sources of revenue and established goals we want to reach. Programs were put into place to achieve these goals.
We’ve encouraged more high profile advertisers such as General Motors to partner up with the Angels in long-term sponsorships. Hopefully we’ve brought the Angels experience to a higher level that allows us to approach newer and better advertisers.
Are you satisfied with your 10-year contract with Fox Sports Net? Would you like to see more coverage?
We are very satisfied with our agreement with Fox. It’s an exceptional partner. It knows this business and has helped enhance our product.
Can you put a number on the effect of changing the name to the Los Angeles Angels of Anaheim? What has been the downside, if any?
The name change is part of a long-term process to assist in the Angels organization being identified as a major market franchise.
The team ranks No. 4 in the league for payroll. Would you rather see this increased or decreased?
The payroll and building of the ball club itself is the responsibility of our general manager Bill Stoneman and his baseball operations department. He and his staff are always looking to make the Angels better. There’s a lot of hard work that goes into evaluating talent and we have one of the best staffs in Major League Baseball when it comes to scouting and player development. Bill’s staff is constantly exploring avenues and opportunities to improve our organization on all levels.
You and Arte go way back. Do you two ever just sit and enjoy a game over a beer?
Yes, Arte and I go back a ways, and yes we’ve always enjoyed a cold beer especially when it’s watching a baseball game.
