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Thursday, September 02, 2010

Frank McCourt proposed to slash Dodgers’ payroll in business plan - Los Angeles Times

How do you know a MLB owner is lying?

Among the promises Frank McCourt made on the day he took over the Dodgers in 2004: He would maintain the Dodgers’ player payroll within the top one-quarter of major league teams, and he had no plans to consider selling naming rights to Dodger Stadium.

The business plan he filed with Major League Baseball tells a different story on both counts. In two largely similar versions of the plan, the document explains how he plans to reverse the Dodgers’ financial losses in part by slashing payroll—from $100 million in 2004 to $85 million in 2006—and limiting annual growth to about 4%.

His lips are moving. [cue rimshot]

Jim Furtado Posted: September 02, 2010 at 11:44 AM | 33 comment(s) | Login to Bookmark
  Related News: GeneralLA Dodgers

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   1. bfan Posted: September 02, 2010 at 11:49 AM (#3631784)
Wait a minute; those 2 statements are not necessarily contradictory. If 85 million was within the top 25% of payrolls in 2006, then both are true.

And...if he was obligated to come up with a plan to reverse financials losses (as any good business owner should do), there are 2 ways to do that; reduce costs and increase revenues. Most new owners of any business enterprise will use a combination of both.
   2. cercopithecus aethiops Posted: September 02, 2010 at 12:06 PM (#3631793)
Dodger's actual payroll for 2006 opening day 25-man roster was $98,447,187 per Cot's. That was 6th in MLB.

EDIT: $85M would have put them around 13th. They were 11th in 2005, at ~$83M.
   3. AROM Posted: September 02, 2010 at 12:11 PM (#3631799)
Dodgers are already over 3 million in attendance, and typically draw about 3.7 million per season. Los Angeles as a somewhat decent media market, and they own the stadium. Dodger payroll is not extremely high. I don't believe for a second this team could be losing money, unless the expenses are bloated with Frank and Jamie's personal luxuries.

Certainly after the Marlins fiasco, if any team wants sympathy for losing money they must produce an independently audited financial statement. Otherwise, tell them to STFU.

McCourt sure is a piece of work. I wish California would make some progress on immigration control. Stop worrying so much about the Mexicans. Deport the Bostonians.
   4. snapper (history's 42nd greatest monster) Posted: September 02, 2010 at 12:16 PM (#3631804)
I don't believe for a second this team could be losing money, unless the expenses are bloated with Frank and Jamie's personal luxuries.

Yup. What would be the logic that the Dodgers don't have revenues somewhere in the Red Sox range, if not closer to the Yankees?

I'm pretty sure this is a team that could sustain a $150M payroll w/o breaking a sweat.

I imagine a ton of revenue is hidden in the stadium/parking/concessions/TV deals.
   5. RJ in TO Posted: September 02, 2010 at 12:20 PM (#3631810)
I imagine a ton of revenue is hidden in the stadium/parking/concessions/TV deals

While I would agree with the first three, aren't the Dodgers still locked in to that not-so-good TV deal with FOX?
   6. hokieneer Posted: September 02, 2010 at 12:22 PM (#3631812)
Certainly after the Marlins fiasco, if any team wants sympathy for losing money they must produce an independently audited financial statement. Otherwise, tell them to STFU.

Loria had to go and ruin it for all the other scum bag pseudo-criminals.
   7. Shooty: Applying to be Fearless Leader Posted: September 02, 2010 at 12:39 PM (#3631821)
Good job Bud.

McCourt: I really want this team. The first thing I plan to do is not invest in the on field product.

Selig: Brilliant. Don't worry about not having any money. We like the cut of your jib!
   8. Marc Sully's not booin'. He's Youkin'. Posted: September 02, 2010 at 12:40 PM (#3631823)
Why would it be in any way surprising that the Dodgers' payroll would be linked to the fiscal health of its owner? Things have changed for the Dodgers. Not that it doesn't suck, but isn't it just the reality?

If the argument is that team revenues could support a top-tier payroll w/o eroding reasonable margins, that's a different story.
   9. Shooty: Applying to be Fearless Leader Posted: September 02, 2010 at 12:42 PM (#3631826)
If the argument is that team revenues could support a top-tier payroll w/o eroding reasonable margins, that's a different story.

I think this is the argument.
   10. snapper (history's 42nd greatest monster) Posted: September 02, 2010 at 12:49 PM (#3631833)
If the argument is that team revenues could support a top-tier payroll w/o eroding reasonable margins, that's a different story.

Yup. Huge market, huge attendance, and they own the stadium and parking. Their revenue should be second only to the Yankees.
   11. cercopithecus aethiops Posted: September 02, 2010 at 12:57 PM (#3631839)
Their revenue should be second only to the Yankees.

Basically tied for fourth with the Cubs, behind the Red Sox and Mets. Probably could be second easily with a better TV deal.
   12. Shooty: Applying to be Fearless Leader Posted: September 02, 2010 at 12:57 PM (#3631840)
Not to mention a lot of their payroll commitment was deferred and they've been selling prospects in order to add veterans for stretch drives. But hey, you have to have that Malibu mansion across the street because it has a slightly better pool.

edit: And the Dodgers also have a sweet Spring Training deal.
   13. Diapers McGee Posted: September 02, 2010 at 01:14 PM (#3631847)
Good job Bud.

McCourt: I really want this team. The first thing I plan to do is not invest in the on field product.

Selig: Brilliant. Don't worry about not having any money. We like the cut of your jib!


This.

Not that this is suprising in the least.

I can also imagine the opposite being true.

Mark Cuban walks into Selig's office,
Cuban: I'm going to improve this team by investing money here, here, here, and oh yeah, here.
Selig: Next!
   14. phredbird Posted: September 02, 2010 at 04:10 PM (#3632143)
I don't believe for a second this team could be losing money, unless the expenses are bloated with Frank and Jamie's personal luxuries.


this

aren't the Dodgers still locked in to that not-so-good TV deal with FOX?


its coming out that mccourt has approached fox about a new contract now that would mean a lot more $$$ for the dodgers. his leverage is that the contract is up in 2013 and he could go to a cable model like the yanks and keep all the money for himself.
   15. Bring Me the Head of Alfredo Griffin (Vlad) Posted: September 02, 2010 at 04:14 PM (#3632147)
Good job Bud.

McCourt: I really want this team. The first thing I plan to do is not invest in the on field product.

Selig: Brilliant. Don't worry about not having any money. We like the cut of your jib!


In fairness to Bud (can't believe I'm typing this) - if you don't have any money, promising not to spend on your team is a pretty plausible claim.
   16. RJ not in TO Posted: September 02, 2010 at 04:17 PM (#3632153)
In fairness to Bud (can't believe I'm typing this) - if you don't have any money, promising not to spend on your team is a pretty plausible claim.


In fairness to the "Best Interests of Baseball", if you don't have any money, you shouldn't be allowed to buy a team...
   17. Yankee Redneck is a Pinhead. Posted: September 02, 2010 at 04:18 PM (#3632155)

I can also imagine the opposite being true.

Mark Cuban walks into Selig's office,
Cuban: I'm going to improve this team by investing money here, here, here, and oh yeah, here.


SELIG points at his own wallet. "What about here?"
   18. Bring Me the Head of Alfredo Griffin (Vlad) Posted: September 02, 2010 at 04:30 PM (#3632169)
In fairness to the "Best Interests of Baseball", if you don't have any money, you shouldn't be allowed to buy a team...


Since when has Selig cared about the best interests of baseball?
   19. Yankee Redneck is a Pinhead. Posted: September 02, 2010 at 04:36 PM (#3632178)
Since when has Selig cared about the best interests of baseball?


He does, he just has a different definition of the term than an impoverished lout like you.
   20. Bring Me the Head of Alfredo Griffin (Vlad) Posted: September 02, 2010 at 04:45 PM (#3632184)
...an impoverished lout like you.


Impoverished? I have a home, and a job, and a cat. What more do I need?
   21. RJ not in TO Posted: September 02, 2010 at 04:57 PM (#3632195)
Since when has Selig cared about the best interests of baseball?


Yeah, that was my point.
   22. Never Give an Inge (Dave) Posted: September 02, 2010 at 04:59 PM (#3632197)
For some reason the link is not working right now.
   23. Bring Me the Head of Alfredo Griffin (Vlad) Posted: September 02, 2010 at 05:09 PM (#3632208)
Yeah, that was my point.


Your post made him look like both a patsy and a terrible steward. I agree on the latter, but not the former.
   24. AROM Posted: September 02, 2010 at 05:31 PM (#3632225)
Impoverished? I have a home, and a job, and a cat. What more do I need?


Cat litter.
   25. Greg Goosen at 30 Posted: September 02, 2010 at 05:37 PM (#3632232)
It's a shame Mark Cuban won't bid the most money when a team is for sale so we can see what he can do if he owns a team. But that's probably his plan: bid just low enough to lose and have your minions harp about poor old mean Seligula.
   26. Yankee Redneck is a Pinhead. Posted: September 02, 2010 at 05:43 PM (#3632239)
Impoverished? I have a home, and a job, and a cat. What more do I need?


Compared to the fabulously wealthy like Bud and his ownership cronies, you're an insignificant, yacht-less insect. The closest he probably comes to interacting with untermenschen like yourself is when a nurse takes his blood for a PSA assay.
   27. Ron Johnson Posted: September 02, 2010 at 06:23 PM (#3632284)
Worth noting that the earliest franchise valuations I'm aware of are 1980 and the Dodgers were the most valuable franchise.

From an old usenet post (September 2002).

Here are team revenues for the years I have them from 1980-94 as a percentage of league average.
Team       80  82  84  90  91  92  93  94 High Low
Braves     67  87  88  68  89  83 125 138  138  67
Orioles    91  84 105  92 104 137 128 131  137  84
Red Sox   126 112  95 132 121 149 122 123  149  95
Angels    103 130 116  94 105  92  85  74  130  74
Cubs       80  80 127  97 107 106 131 133  133  80
White Sox  77 106 117  95 110 128 124 113  128  77
Reds      121  92  85  94  98  81  83  76  121  76
Indians    59  58  59  67  69  65  77 101  101  58
Rockies                            82 108  108  82
Tigers    104  97 129  73  85  83  88  82  129  73
Marlins                            71 101  101  71
Astros    127 128  NA  77  73  71  95  85  128  71
Royals    139 110  99 103  86  85  82  79  139  79
Dodgers   183 230 179 124 135 138 126 122  230 122
Brewers   100 112  85  74  74  74  73  64  112  64
Twins      65  58  NA  79  88  87  77  65   88  58
Expos     113 118  97  68  68  77  73  64  118  64
Mets       81  94 108 156 158 143 127 111  158  81
Yankees   205 174 135 189 158 155 170 177  205 135
As         73  83  72 112 105 106  95  91  112  72
Phillies  160 134 125 119 100  82  96 102  160  82
Pirates   107  77  69  79  85  82  68  63  107  63
Padres     61  75 100  91  84  88  75  62  100  61
Giants     NA  74  75  96  83  77 109 107  109  74
Mariners   43  49  50  66  85  74  80  68   85  43
Cardinals  73  91  87 108  98  84 102  97  108  73
Rangers    62  65  85  97  95 109  95 124  124  62
Blue Jays  83  82 112 149 136 144 139 140  149  82
St
Dev.   40  38  28  30  25  28  26  29 


And what I have handy since then (Again percentage of league average)

Team          95  96  97  99  01
Angels        77  64  79  96  86
Braves       120 120 151 164 134
Orioles      149 160 170 147 111
Red Sox      135 134 116 130 127
Cubs         125 116 103 111 110
White Sox    111 107 104  78  85
Reds          80  69  63  63  73
Indians      120 145 169 160 126
Rockies      140 145 147 129 108
Tigers        78  67  64  76  95
Marlins       95  85 111  63  68
Astros        88  95  86  99 105
Royals        71  65  65  66  71
Dodgers      141 134 119 127 120
Brewers       59  63  59  64  90
Twins         60  62  59  50  63
Expos         58  62  55  50  53
Mets         122 104 102 133 142
Yankees      186 202 183 207 180
As            82  75  71  64  75
Phillies      90  76  72  72  79
Pirates       49  60  62  61  90
Padres        56  80  73  83  77
Giants        92  79  88  76 119
Mariners      73  87 113 118 139
Cardinals     97 106 105 110 103
Rangers      123 133 123 124 112
Blue Jays    124 106  85  78  76
Diamondbacks             118 106
Devil Rays                82  77
St
Dev.      34  36  37  38  28 


EDIT: Sorry about the headers, but it formatted better than Normal
EDIT2: Hey it worked!
   28. zachtoma Posted: September 02, 2010 at 07:42 PM (#3632366)

McCourt sure is a piece of work. I wish California would make some progress on immigration control. Stop worrying so much about the Mexicans. Deport the Bostonians.


Dude's trying to play a game that's out of his league. Give it up, ya carpetbagger.
   29. Bring Me the Head of Alfredo Griffin (Vlad) Posted: September 02, 2010 at 07:47 PM (#3632371)
Compared to the fabulously wealthy like Bud and his ownership cronies, you're an insignificant, yacht-less insect. The closest he probably comes to interacting with untermenschen like yourself is when a nurse takes his blood for a PSA assay.


Why should I care what Bud thinks? He probably smells like old people.
   30. jwb Posted: September 02, 2010 at 09:37 PM (#3632474)
The closest he probably comes to interacting with untermenschen like yourself is when a nurse takes his blood for a PSA assay.
Well, there's also the butler, the chauffeur. . .
   31. Pops Freshenmeyer Posted: September 02, 2010 at 10:22 PM (#3632509)
Impoverished? I have a home, and a job, and a cat. What more do I need?

A publicly financed litter box with attached restaurants and hotels.
   32. Jeff R., P***y Mainlander Posted: September 02, 2010 at 11:04 PM (#3632552)
#27, where does that data come from?

And gosh, when you compare the Brewers revenue to the Twins, it's kind of hard to tell which one of them is a hopeless franchise that needs to be contracted, and which one just needs a taxpayer-bought stadium to compete. I wonder why the Brewers were never offered up for contraction?
   33. Ron J Posted: September 04, 2010 at 08:17 AM (#3633445)
#32 I got it from Rod Fort's Business of Baseball site. I think Doug Pappas (followed by Maury) got most if not all of what Fort had. It used to be the place for primary sources.

Only real work I did was converting absolute numbers (usually based on Michael Ozanian's work) to a relative number (to deal with the strong upward trend in baseball revenue)
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