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MLB Hot Stoves: Three Things Owners Should Keep In Mind When Discussing Economic Losses During the Late Off-Season – MLB Sports

Commissioner of Baseball Rob Manfred has set the tone inevitable for the World Series off-season. Mann when the eyes and ears focus on the game’s distinctive events while at the same time assessing what players had to sacrifice to play the season in the midst of a pandemic. Fred is a team owner millionaire class.

This is part of what Manfred told Sportico’s Barry M. Bloom. A work that ran between the Rays and the Dodgers the day before Game 6:

“Economic loss [this season] “It’s been a devastating blow to the industry,” Manfred said. “We’re seeing some impact on the decisions the club is making. [laying off] Baseball management and business employees. That is, you have never seen such a type of decision, at least because I was around.

“To survive the year, the club did a great job of staying liquid, but they also took on a lot of additional debt.”

Specifically, Manfred estimated that the team as a group lost about $ 3 billion during the 2020 season. This loss was due to the fact that until the second half of the postseason, and yet a very limited number of fans were not allowed to participate in the game. That is, there was little sales of tickets, parking lots, concessions, and merchandise in the stadium for the season. Such a tragic story has already become an off-season refrain between the owner and his followers, and it has to trade stars under long-term contracts, the top class of 2020-21 free agents. It will continue to be a sprint as an excuse to take over.

To be fair MLB Through its constituent teams, it probably endured an economic blow during 2020, but before starting to believe what Manfred and the owner were saying. scale Three of these losses need to be remembered. To wit …

1. Almost everything MLB team There is no obligation to publicly disclose the finances or tell the truth about them.

With the exception of the Braves, which is part of Liberty Media, the MLB team is not a publicly traded company. They are private, which means they do not have to publish financial statements. That is, they are free to lie about their finances, which has been done by team owners since ancient times. These lies are usually a calculated variety designed to involve public opinion in the owner’s ongoing efforts to limit a player’s salary. Too often, we are in line with it.

But if you look behind the curtains, you’ll see that the team is very profitable.For example, the Braves I’m doing well.. Leaked documents from the lower classes of the supposed baseball team It has also shown healthy profits in the not too distant past. Forbes conducts forensic accounting on the financial position of the MLB team each year, and the findings are almost universally promising. In non-pandemic years (almost every year), baseball is a very profitable industry. Beyond that, when an MLB franchise is sold, it inevitably bestows the capital gains of their outgoing owners, which are difficult to find in other markets. If the MLB franchise is consistently losing money, that won’t happen.

When tackling these issues, this space likes to drag old Paul Beaston quotes howling from the vault. Former Blue Jays president and top MLB executive once said:

“Anyone who cites baseball club profits misses the point. Under generally accepted accounting principles, I can turn a $ 4 million profit into a $ 2 million loss and everything You can get my consent from the national accounts company. “

What is important is not that the owner was not hit in 2020. The point is that when it comes to the team’s financial debate, it’s extremely unreliable. Their current catering may have a core of truth buried in them, but be sure to apply sound discounts to their particular claims.

2. “Loss” can have different meanings.

Owner Manfred, Team Management, is careful to emphasize the “loss” incurred in 2020 in both public comments and planted citations. Potentially, it acts as a weasel term in this context. Losses could mean a significant decrease in revenue from 2019. This is true, but it didn’t necessarily run in the red in 2020.

Scott Boras recently made a similar point:

“Many teams have lost profits. It’s a big profit. But I know. It’s about running games and making money for baseball game teams …. Playing baseball games without fans. We know that the players who play make money for the MLB team. “

Yes, income has declined, and in that sense they have lost money. However, MLB and its team, albeit less than usual, still generated national and local television revenues and some merchandising and sponsorship revenues, as well as post-season broadcast revenues. Money comes in, though not as usual.

3. Remember that players apportioned their salaries in 2020.

What seems to be forgotten in all of this is that by 2020, team costs were also lower. Prior to the season, players agreed to apportion their 2020 salary based on the number of games played. That number eventually reached 60. This means that owners were on just 37% of their payroll obligations in 2020. Obviously, that’s a huge cost savings. By the way, when discussing the financial sadness of this year’s team owners, this fairly important fact is overlooked. Above, this was just written: “There was money coming in, not as usual.” Similarly, money was coming out, not as usual.

In light of all this, a more realistic interpretation of the word “loss” may be to assume a decline in profits rather than a situation in which costs outweigh income.

These are the old sleights of hand that team owners have used, as long as there is something like a team owner. They did record a one-off hit in 2020, but they almost certainly decorate the range of things. When it comes to such issues, MLB and its owners would have been wasting your trust long ago.


– MLB Sports

MLB Hot Stoves: Three Things Owners Should Keep In Mind When Discussing Economic Losses During the Late Off-Season

https://www./mlb/news/mlb-hot-stove-three-things-to-keep-in-mind-as-owners-discuss-financial-losses-during-slow-offseason/ MLB Hot Stoves: Three Things Owners Should Keep In Mind When Discussing Economic Losses During the Late Off-Season

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