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One monetary point that no one has mentioned yet...


UltimateCabrera24
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I believe that teams are offering rediculous contracts this offseason because every team received a RATHER large sum of money from the new ESPN and XM Satellite radio deals. Nearly every article you read mentions this and the result being insane contracts.

 

My question is this... what the heck happened/is happening with the Marlins windfall?

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whether he's losing money, breaking even, or even making a little bit, if he wants to add more money to any possible stadium deal, he's got to free up more money.

 

Some people even asked what Loria was doing last year, signing Delgado to a big contract when at the time it seemed they were around 50 million short on a stadium deal.

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I truly doubt Loria is breaking even. This organization is losing ridiculous money. Winning the WS probably hurt him financially in that Loria wanted to counting fielding a competative team. This team needs a new stadium and a better TV contract.

 

The Marlins start the first year of their new TV deal in 2006. 150 games on FSN Florida (or Sun Sports) long-term and with a good amount of money. Plus you add on the loss of the Pudge and Hampton deals and you have more cash available. Loria is cleaning the financial house of that which is not max bang for buck.

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To be honest, I'm having a tough time understanding why Loria would feel compelled to slash payroll to the degree indicated these past few days.

 

Revenue sharing is up, TV/Radio contracts are up, ticket prices are up, season ticket renewals were ahead of last year's pace. Attendance is up throughout MLB, which the Marlins directly benefit for every team they visit. Overall, revenue will be up significantly in 2006.

 

On the other side, I was completely surprised when Loria took payroll from $50M to $67M last year. That may have been a bit much. I can certainly see them bring it back down into the high 50's, but all the way down to $40M by gutting the team is ridiculous and unnecessary IMHO.

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I wonder if in the new era of MLB (revenue sharing), it pays off to be either a big fish or a small fish.

 

Maybe "Tampa Bay" ball is what is required to keep baseball in South Florida, and the FO to make money?

 

 

It pays to be a big money team getting a new stadium funded out of your own pocket. You're exempt from paying luxury tax equal to your own contribution to stadium production...that's the only reason the Yankees are building a new Yankee Stadium.

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To be honest, I'm having a tough time understanding why Loria would feel compelled to slash payroll to the degree indicated these past few days.

 

Revenue sharing is up, TV/Radio contracts are up, ticket prices are up, season ticket renewals were ahead of last year's pace. Attendance is up throughout MLB, which the Marlins directly benefit for every team they visit. Overall, revenue will be up significantly in 2006.

 

On the other side, I was completely surprised when Loria took payroll from $50M to $67M last year. That may have been a bit much. I can certainly see them bring it back down into the high 50's, but all the way down to $40M by gutting the team is ridiculous and unnecessary IMHO.

 

Take the pain now to allow for the stablity of tomorrow.

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I wonder if in the new era of MLB (revenue sharing), it pays off to be either a big fish or a small fish.

 

Maybe "Tampa Bay" ball is what is required to keep baseball in South Florida, and the FO to make money?

 

 

It pays to be a big money team getting a new stadium funded out of your own pocket. You're exempt from paying luxury tax equal to your own contribution to stadium production...that's the only reason the Yankees are building a new Yankee Stadium.

 

Wow !!!! That's a great piece of data Swift.

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I think a lot of people missed my point in this thread. EVERY team is getting ALOT of money this off-season from the new just signed ESPN contract and the new XM Satellite Radio contract. Many teams are using this to sign players and improve the team.

 

What exactly are the Marlins doing with it?

 

That's where I was trying to go, not in the direction of whether or not Loria turned a profit last year.

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I think a lot of people missed my point in this thread. EVERY team is getting ALOT of money this off-season from the new just signed ESPN contract and the new XM Satellite Radio contract. Many teams are using this to sign players and improve the team.

 

What exactly are the Marlins doing with it?

 

That's where I was trying to go, not in the direction of whether or not Loria turned a profit last year.

 

 

Just how much are the teams gaining with the new contracts?

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I think a lot of people missed my point in this thread. EVERY team is getting ALOT of money this off-season from the new just signed ESPN contract and the new XM Satellite Radio contract. Many teams are using this to sign players and improve the team.

 

What exactly are the Marlins doing with it?

 

That's where I was trying to go, not in the direction of whether or not Loria turned a profit last year.

 

 

Just how much are the teams gaining with the new contracts?

 

Enough that Dan O'Dowd expects this to be a massively out of control off-season of spending.

 

I don't have numbers in front of me but you have to believe that teams on MLB welfare are probably going to be getting somewhere in the neighborhood of eight figures.

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I also suppose that in a way you can argue that the Marlins are being responsible, because many teams plan on spending all of the money (or at least most of it) this offseason.

 

 

Or looking at it another way. If all that money is available to spend, it sure would be a good time to be sellers.

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