At 2pm EST today, I’ll be conducting my first chat on Baseball Prospectus. If interested, you can ask questions in advance, and no… You don’t have to be a subscriber to ask questions, or read the chat transcript.

Ask questions in advance here

In some press news…

LA Times today…

I get a small mention in Michael A. Hiltzik’s article today in the LA Times (Cubs a Winner for Tribune):

The team’s 1914-vintage stadium and its location, hemmed in by residential and commercial neighborhoods, would normally be regarded as shortcomings. But Wrigley Field’s historical cachet keeps fans coming despite the Cubs’ futility on the field.

“I don’t think you’d have people flocking out to see the Cubs lose in a different facility,” said Maury Brown, co-chairman of the business of baseball committee of the Society for American Baseball Research.

Well, duh, Maury.

In a larger sense, look at the value of the Cubs this way…

The Nationals were just sold for $450 million. It appears that $450 million figure could apply to the sale of the Braves, as well. Forbes has the Cubs valued at $448 million.

Let’s think about that… WGN… Comcast SportsNet Chicago… Wrigley Field… Debt value = 0%… More revenue opportunities for Wrigley than are currently being exploited… If the Cubs aren’t worth in excess of $500 million +, it would be a miracle.

Pittsburgh Tribune-Review… “Who is this Maury Brown guy who is disputing our figures?”

On Sunday, Joe Rutter of the Pittsburgh Tribune-Review had an extensive article on the Pirates and how they are treating their revenue sharing dollars. Rutter had interviewed me about a month ago on this matter, so he was able to get responces from Kevin McClatchy. Somehow I don’t think I’ll be getting an interview with him any time soon.

In Rutter’s article from Sunday (Loser’s Winnings):

We submit our finances and how we spend our money to the league, and it’s also reviewed by the union,” McClatchy said. “We never — ever — have had a problem with anyone questioning how we’ve spent our money. I’m sure people can make claims, but we’re very comfortable that we’re in the right here.”

One skeptic is Maury Brown, co-chair of the Society for American Baseball Research’s business of baseball committee. He has spent five years studying the game’s finances, and his findings have been published in publications such as CNN/Money, the Boston Globe and the Los Angeles Times.

“The Pirates can go on record and say they’ve increased payroll and been fiscally responsible,” Brown said. “But you have to wonder where all of the money really is going.”

Further in the article…

A Forbes magazine study claims the franchise posted a $34.1 million profit (before interest, taxes, depreciation and amortization) over the past two years. The profit last year was $21.9 million.Through a spokesman, McClatchy disputed the Forbes figures.

He said the magazine “never had access to financial information from Major League Baseball or the individual clubs. MLB said in a recent statement that ‘the estimates … materially misstate the financial performance of the industry as a whole and of the individual clubs.’ The Pirates agree with that statement.”

According to Forbes, the Pirates and 20 other teams made money last season. That’s a dramatic change from 2001, when the Pirates were among the 25 franchises that finished in the red.

“If he’s making a considerable profit, that makes me wonder if McClatchy is spending his revenue-sharing dollars in the manner defined” in the players’ contract, Brown said. “That’s a key question that is widely debated. If the CBA (Collective Bargaining Agreement) was held to the letter of the law, he’d probably be penalized for it. But so would a number of other clubs.”

I should mention that I thought I said I was off the record on the Bataan Death March comments below… eh, what the heck…

Brown, for one, wonders why they didn’t mimic the Blue Jays and pour more revenue-sharing money into the major-league payroll. Particularly heading into a year when the franchise would generate additional local revenue from hosting the All-Star Game. With the midsummer classic as a lure, full-season ticket equivalents have increased by 2,000 from 2005.

“This was a prime opportunity to build something for next year, and they didn’t take it,” Brown said. “Money doesn’t buy a winning team, but it certainly wouldn’t have hurt them.

“I hate to use this analogy, but the situation in Pittsburgh, it’s like the Bataan Death March, it’s just kind of there. There doesn’t seem to be any excitement around it, and it translates to the fans. There’s no sense of real hope that they’re going to go that route like (team CEO) Paul Godfrey and the Blue Jays have gone.”

McClatchy, through a spokesman, said it was not a “fair comparison,” because, “Toronto is a much larger market than Pittsburgh.”

Well, that may be, Mr. McClatchy, but what about Milwaukee?

• The Pirates opening day payroll: $46,717,750
• Revenue sharing received by the Pirates: $25 million
• Pittsburgh population (based on the last census): 2,358,695
• The Brewers opening day payroll: $57,568,333
• Revenue sharing received by the Brewers: $24 million
• Milwaukee population (based on the last census): 1,689,572

Oops…

Is it any wonder that McClatchy kept asking, “Who is this Maury Brown guy who is disputing our figures?”

This entry was posted on Wednesday, June 21st, 2006 at 7:13 am and is filed under Baseball Insight. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.