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Sunday, January 31, 2010

Rochester Red Wings hold annual shareholders meeting (Batavia Muckdogs leading to finacial loss)

After the news of how Oneonta Tiger is moving to Norwich, some wondered if the Batavia Muckdogs might be the next small-town NYPL team to go. Well, here’s an update on how the Muckdogs are affecting the Rochester Red Wings (who stepped in to save Batavia in 2008) in the wallet. Make your own conclusions on what will happen to one of the smallest non-rookie league teams in the Minors….

“At what point does the board (of directors) feel we can no longer sustain losses operating the Muckdogs?” Schum asked Saturday during the annual RCB shareholders meeting at the Doubletree hotel in Henrietta.

The Wings have lost $396,920 since assuming operational control of the short-season Muckdogs — $143,495 in 2009 and $253,425 in 2008. The Wings lost $24,349 running their own operation last season — investment losses were the primary driver — and finished in the red for the first time since moving into Frontier Field in 1997.

RCB president Gary Larder pointed out that the Wings will make 5 percent for every year they run the Muckdogs if the struggling New York-Penn League franchise is sold (the team is owned by the Genesee County Baseball Club). The Wings will run Batavia for a third season in 2010. The minimum price for a short-season Class A team is $4 million. That would net RCB $600,000, and allow it to recoup its losses — but only if the team is sold.

“Oneonta just moved to Norwich, Conn.,” said Schum, 37. “With Norwich off the table, there aren’t many options left. Not many people are buying ballclubs. Yes, we’re building equity in Batavia. But are we building equity in something we can’t sell?”

Larder promised the Red Wings always will come first.

“Our main priority is baseball in Rochester,” he said. “We really don’t know what’s going to happen with Batavia.”

Gamingboy Posted: January 31, 2010 at 04:01 PM | 0 comment(s) Login to Bookmark
  Tags: business, minor leagues

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