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Wednesday, March 17, 2021

Minor Leagues Seek Distressed Oaktree Loans to Meet New MLB Terms

For the first time, there are numbers attached to the amount of money lost in 2020 by minor league baseball, and it’s going to take a lot of ticket and hot dog sales to close the gap.

“I think the average team, revenue-wise, will have lost $5 million,” Larry Botel, a New York real estate mogul who owns three teams with partner Gary Green, said in an interview.

That’s $800 million total for the 160 teams that were still in business last season. Now, 40 of those teams are out of business, having not been given a Player Development License (PDL) by Major League Baseball this year to remain an affiliated franchise.

The remaining 120 teams now are faced with the issue of how to cope with those lost revenues, which according to Botel, were offset somewhat by a pair of federal PPP loans, staffing furloughs, and creative use of various ballparks this past summer for socially-distanced events.

In those cases, he added, the average operating loss for each club was between $2 million to $3 million last year.

“But $2 million to $3 million in minor league baseball is a lot of money,” said Botel, who has one team each in Triple-A, Double-A and Single-A.

RoyalsRetro (AG#1F) Posted: March 17, 2021 at 02:14 PM | 4 comment(s) Login to Bookmark
  Tags: minor leagues

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   1. Starring Bradley Scotchman as RMc Posted: March 17, 2021 at 05:47 PM (#6009002)
“I think the average team, revenue-wise, will have lost $5 million,”

Why bother with "revenue-wise" in that sentence? Can you lose five million dollars any-other-way-wise?
   2. RoyalsRetro (AG#1F) Posted: March 17, 2021 at 06:18 PM (#6009009)
Yea, I think paper losses, right? Depreciation of assets? The way MLB teams claim losses?
   3. Never Give an Inge (Dave) Posted: March 17, 2021 at 06:20 PM (#6009010)
#1, yes, as TFE explains, they were able to make up some of the shortfall by cutting costs and finding other revenue streams, so they didn’t lose $5 million on a net basis.
   4. willow19 Posted: May 07, 2021 at 07:55 AM (#6017509)
According to these reports Vargas is coming back after treatment of sever elbow tendinitis. It is definitely a big news for fans and this is going to be interesting to see him after a long break. I must say upcoming basketball matches on are going to be crazy for Vargas fans. Keep sharing new updated of this innings.

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