Small Market Teams With Insanely Rich Owners

[THUNDER HANDS]

Minnesota Twins

Owner's net worth = $2.6 BILLION
Team payroll = $56 million (26th in the league)

Washington Nationals

Owner's net worth = $2.5 BILLION
Team payroll = $49 million (27th in the league)

Oakland Athletics

Owner's net worth = $1.7 BILLION
Team payroll = $42 million (28th in the league)

Florida Marlins

Owner's net worth = $1.8 BILLION
Team payroll = $27 million (29th in the league)

Tampa Bay Rays

Owners' net worth = $6.5 BILLION
Team payroll = $22 million (30th in the league)


I'm tired of hearing how small-market teams can't compete. They can. The cheap-ass owners just refuse to.

[hughee99]

1. Not just that...

The Florida Marlins were the MOST profitable team in MLB in 2006 (I don't have the 2007 numbers, I'm not sure if they're available yet).

The Marlin's owners made a $43 million dollar profit on the team. Tampa was 11th with a $20 million profit, the Nationals were 13th with a $19.5 million dollar profit, The Twins and Oakland were 19th and 20th with about a $14.5 million dollar profit. The LEAST profitable franchise was the Yankees who showed a $25 million loss, but don't feel to bad for George, he made that all up and then some with his profits from the YES network, that broadcasts his team's games.

http://www.forbes.com/lists/2007/33/07mlb_The-Business-Of-Baseball_Income.html

[RL3AO]

2. The Twins owner has to be worth more than 2.6B.

I thought he was worth 6B or so. Or maybe thats Glen Taylor.

[northzax]

3. first off, the Nationals aren't small market

they were in a poor stadium deal, and have a crappy TV deal, but that's their fault.

and you know that these billionaires didn't become billionaires by spending more than they make, right?

[madinmaryland]

4. Actually it's MLB's fault about the crappy deal.

When they moved to DC, they were owned by MLB. MLB and Peter Angeleos negotiated the television deal with Peter Angelos. Yes, can you say conflict of interest!

[northzax]

5. yes, but the Lerners knew the terms

and, I assume, factored that deal into the price they were willing to pay for the team.

[madinmaryland]

6. Absolutely, the Lerners knew the terms, but they

were not the ones who made the crazy terms. I sure hope they factored it into what they paid for the team.

[northzax]

7. I doubt it

but they are getting a heck of a stadium gift out of it.

[DaveinMD]

8. the Nats

aren't spending a lot of money now on major league payroll because its not the right time. They are rebuilding through the minors. They'll spend when they reach the level of competitiveness with this crop of young players in a couple of years.

[northzax]

11. uh huh

conveniently, that should be just about when the stadium gravy train is running out of gas after another few years of futility. They didn't spend the first two years because of the novelty of being in DC and the new ownership, they didn't spend last year because of the pending stadium, they won't spend the next two years because of the novelty of the new stadium. come to think of it, given the structure of the city, they never need to spend, all the high revenue seats will be sold to lobbyists and lawyers for tax deductions, no matter how bad they are. As long as people are willing to go see their home team play the Nats (which they seem to be somewhat) and the technocrats buy suites and $400 seats behind home plate, who cares? the Lerners have put no money into the team, and it's probably appreciated in value by a hundred million or so, now that the gift of the stadium is almost done.

[DaveinMD]

12. they spend moderately

the second year. When it was apparent that the success of the first year was a fluke, they paired down and put money to rebuild the minor league system. They made some very good moves this offseason. They'll be competitive in a couple of years when the young pitching they drafted develops. Then they'll sign some players.

In the end, I don't really care. But I think most people don't understand that is not wise to spend when you are not ready to compete. Its much wiser to use that money on player development at that stage. That's what Cleveland did to rebuild their team. Its what Colorado did. Those are the models to follow for mid-market teams like the Nationals.

[northzax]

13. the problem is

that if that pitching develops as it might, those pitchers will be gone in two-three years. the window for mid-market teams (although I think that the Nats are wealthier than that, or will be) is tiny (who thinks Colorado will be back? how often does Cleveland actually compete?)

[DaveinMD]

14. Cleveland

has been competitive 2 of the last three years. Winning the division last year and barely missing the playoffs two years ago. That after a rebuilding period that came after a very long run of the making the playoffs.

I think both Colorado and Arizona will be back next year. Colorado has a very good young team. The teams make more money when they are good. Look at Detroit. They went from small market to mid market to now big market.

[cboy4]

9. The top payrolls in 2007 belonged to the two

New York teams, the two Los Angeles teams, the two Chicago teams.

That's very telling.

[trotsky]

10. Yes, Carl Pohlad is a tightwad.

He regularly takes hits in the Minnesota sports media, deservedly so.

However, teams in small markets are run like businesses. And a business must make a profit. The economics of the situation are that without a salary cap, and without equitable revenue sharing, the Twins will simply never be able to pay Mets-like salaries and still make money. They can't sell enough tickets or have their own network to broadcast games or charge enough for luxury boxes. Sure, Pohlad could run the Twins at a loss. Can you blame him if he doesn't want to?

[cboy4]

15. And that's why they don't run them for losses because

they're businessmen.

Everything you just said is correct.