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Saturday, August 28, 2010

PIT Post-Gazette: Baseball commissioner takes no issue with Pirates’ finances

Major League Baseball commissioner Bud Selig said today that he has no issues with the Pirates’ finances or commitment to winning in light of the team recently divulging $35 million in profits from 2007-09 and a $20.4 million distribution to ownership.
...
Selig told the Post-Gazette last September that he had no issue with the Pirates’ finances and that he never received a complaint from a team owner or the players’ union. He reiterated both Friday, adding that the teams and the union had access to all teams’ figures teams before the recent leaks of five teams’ books to the Associated Press and Deadspin.com.

Selig cited as evidence on the union front a meeting between the Pirates and the union’s new chief, Mike Weiner, during spring training in Bradenton, Fla. That was aimed—and succeeded—at heading off a union complaint similar to the one that prompted the Florida Marlins to pass the Pirates in spending this year.

“I feel comfortable with telling you that the union wanted to talk about Pittsburgh six months ago. They did and left satisfied,” Selig said. ““Let me say this to you: We constantly check everything. The players association has all the numbers. You have to look at the long view of numbers, not just a year or two.”
...
[Selig] applauded the Pirates’ investment in the draft, which has been highest in the majors over the past three years at $30.7 million and was second-highest this season at $11.9 million: “I follow the draft intimately, and I think they’ve done a good job of signing players the past two or three years. I think they’re on the right track. I really do. I evaluate everything that goes on, and people tell me the kids that they’re signing are good. I know there’s frustration, and I understand that. And I’m not unsympathetic. But I really think they’re on the right track.”

NTNgod Posted: August 28, 2010 at 02:11 AM | 11 comment(s) Login to Bookmark
  Tags: pirates

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   1. Sleepy supports unauthorized rambling Posted: August 28, 2010 at 02:40 AM (#3628360)
$15M annual profit on a franchise valued at $289M isn't really THAT excessive, is it? And what can you really buy these days for $15M, anyway, 3-4 wins? The '09 team would have won 66, instead of 62, the '08 club, 71 over 67, etc. It's not like it's mattered.

If I was a pirates fan I'd much rather they put that money into strategic reserve/draft/long term extension for Ronny Cedeno, etc. If I was a competing GM, I'd be torn, because spending more for failure means they'd drive up FA prices for everyone and maybe cost me a cheap win or two. As a player, obviously I'd want them spending everything, plus some. Unless I was a pirates player, in which case I'd hope they traded me to the Cubs, or gave me away to the Cubs for nothing, which is more likely.

If anything, I'm surprised by how low that leaked figure is. I would have thought they'd be making a lot more than that.
   2. cercopithecus aethiops Posted: August 28, 2010 at 02:47 AM (#3628362)
How can Bud applaud the Pirates for spending so much in the draft when he's always hectoring clubs about not going over slot for draft pick signing bonuses?
   3. Der_K is feeling better now. Posted: August 28, 2010 at 02:55 AM (#3628367)
2!!!!

(I have wondered if we'll see a pre-CBA renewal spike in draft spending (with the commish's unspoken consent) - as an incentive for the MLBPA to agree to concessions that will result in caps/etc... - this proves nothing of course, but doesn't hurt my pet theory.)
   4. WTM Posted: August 28, 2010 at 04:40 AM (#3628433)
$15M annual profit on a franchise valued at $289M isn't really THAT excessive, is it?

Especially not when it's not $15M annual profit. The Pirates made $5.4M in 2009 and expect to break even in 2010. For some reason (like, it doesn't fit the narrative) every sportswriter out there except Kovacevic is pretending that two years' statements from 2-3 years ago are the Pirates' entire financial picture for all time.
   5. McCoy Posted: August 28, 2010 at 05:31 AM (#3628456)
I would guess that is after tax profit and after squirreling away as much revenue in various places while puffing up expenses all over the place. So if they spent it and they had honest accounting, and had an ownership group that was willing to spend instead of take profits I'm betting that 15 million would really be something like 30 million dollars to play with on the team.
   6. WTM Posted: August 28, 2010 at 06:22 AM (#3628462)
That's before tax profit. Partnerships don't pay income tax.
   7. McCoy Posted: August 28, 2010 at 02:09 PM (#3628565)
I'm not talking about income tax for the partnership but corporate taxes.
   8. WTM Posted: August 29, 2010 at 12:59 AM (#3628913)
Uh, partnerships don't pay corporate taxes, either.
   9. haven Posted: August 29, 2010 at 02:42 AM (#3628959)
I would guess that is after tax profit and after squirreling away as much revenue in various places while puffing up expenses all over the place. So if they spent it and they had honest accounting, and had an ownership group that was willing to spend instead of take profits I'm betting that 15 million would really be something like 30 million dollars to play with on the team.

And your guess and bet should be taken seriously by others for what reason exactly?
   10. Pirate Joe Posted: August 30, 2010 at 12:09 AM (#3629376)
Partnerships don't pay income taxes or corporate taxes, but the Pirates have also "admitted" that in the years in question they paid the owners approximately $10 million to pay the individual taxes that they owed for profits on the team. Add that in with the $10 million that Nutting paid to himself from the team in interest and that $35 million over three years is really $55 million over three years.

But hey, other than that $20 million over three years the Pirates owners claim they don't take any money out of the team.
   11. WTM Posted: August 30, 2010 at 01:53 PM (#3629718)
Add that in with the $10 million that Nutting paid to himself from the team in interest and that $35 million over three years is really $55 million over three years.

This makes no sense at all.

But hey, other than that $20 million over three years the Pirates owners claim they don't take any money out of the team.

The Nuttings also PAID IN $20M, but I guess that little detail doesn't fit the narrative.

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