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Did every MLB team make a profit in 2012?

Posted on 3/5/13 at 1:21 am
Posted by LSUIEGRAD13
Member since Jan 2011
3939 posts
Posted on 3/5/13 at 1:21 am
I think so. How do MLB franchises make so much money? Could someone explain this chart to me? I thought I had it figured out, until I got to operating income. LINK

Also, an interesting note. The ATL braves have a grand total of ZERO debt.
Posted by VermilionTiger
Member since Dec 2012
37576 posts
Posted on 3/5/13 at 1:25 am to
Tv?
Posted by Pedro
Geaux Hawks
Member since Jul 2008
33437 posts
Posted on 3/5/13 at 6:51 am to
180 games means more chances for more money
Posted by Pilot Tiger
North Carolina
Member since Nov 2005
73143 posts
Posted on 3/5/13 at 6:52 am to
quote:

Also, an interesting note. The ATL braves have a grand total of ZERO debt.
are they not counting player salaries as debt??

Posted by SM6
Georgia
Member since Jul 2008
8796 posts
Posted on 3/5/13 at 8:26 am to
Salaries are expenses, debt would be stadium, etc.

ETA - Even long term commitments would be expenses provided the team has reason to believe the services contracts will be honored. Now a player that was cut, I'm not sure how that plays into it. Or a situation like Albert Belle and my Orioles where we were paying him 6 years after he was deemed medically unable to play (but a portion of his contract was insured)
This post was edited on 3/5/13 at 8:29 am
Posted by Lloyd Christmas
Baton Rouge
Member since Aug 2005
4283 posts
Posted on 3/5/13 at 8:28 am to
quote:

How do MLB franchises make so much money?


162 games and TV deals
Posted by ProjectP2294
South St. Louis city
Member since May 2007
70153 posts
Posted on 3/5/13 at 8:31 am to
quote:

Also, an interesting note. The ATL braves have a grand total of ZERO debt.


Just in terms of being a large business, not just a baseball team, this seems difficult to do.
Posted by SPEEDY
2005 Tiger Smack Poster of the Year
Member since Dec 2003
83359 posts
Posted on 3/5/13 at 8:33 am to
I read something a while back that one of the best sports investments a billionaire can make is to own a minor league baseball team. Warren Buffet owns part of one.

Gonna go try and find it
Posted by Rouge
Floston Paradise
Member since Oct 2004
136798 posts
Posted on 3/5/13 at 8:33 am to
quote:

Did every MLB team make a profit in 2012?
considering that the ownership groups do not open their books, nor do they have an obligation to do so, this is a pretty pointless question
Posted by Moustache
GEAUX TIGERS
Member since May 2008
21556 posts
Posted on 3/5/13 at 8:34 am to
quote:

How do MLB franchises make so much money?


81 games is the most by far of any sports for tix sales and concessions and merch.

No salary cap=capitalist structure. Surprise surprise. It's better than a fricking welfare league like the NBA.
Posted by Lloyd Christmas
Baton Rouge
Member since Aug 2005
4283 posts
Posted on 3/5/13 at 8:35 am to
quote:

The ATL braves have a grand total of ZERO debt.


Private entities, including NBC and other Olympic sponsors, agreed to pay a large sum of the cost to build Centennial Olympic Stadium (approximately $170 million of the $209 million bill). The Atlanta Committee for the Olympic Games (ACOG) sought to build the stadium in a way that it could be converted to a new baseball stadium, and ACOG paid for the conversion.[

worked out pretty good for the Braves
Posted by SPEEDY
2005 Tiger Smack Poster of the Year
Member since Dec 2003
83359 posts
Posted on 3/5/13 at 8:38 am to
How Billionaires Like Warren Buffett Profit From Minor League Baseball Ownership


quote:

And Buffett isn’t the league’s only billionaire owner, either. Robert E. Rich, Jr., who made his $2.1 billion with food conglomerate Rich Products, owns the Buffalo Bisons (No. 13); Herb Simon, chairman and director of Simon Property – the nation’s largest publicly traded real estate investment trust – is a co-owner of the Reno Aces (No. 14).

Why would some of the nation’s wealthiest men be interested in owning such small professional sports teams? Simple: it’s smart business.

Of the 160 minor league teams with player development contracts with MLB team, not one pays a single player, coach, manager or trainer. While the majority of MLB teams’ expenses go towards player costs, they are paid in full for minor league teams. The minor league squads don’t even pay the full cost for bats and balls; it’s split with the major league affiliate. It’s a sweet deal made even sweeter by the cities and counties that are willing to finance minor league stadiums in order to help stimulate their local economies.


quote:

While even the top MiLB teams are worth a fraction of the $605 million that the typical MLB team is worth, minor league teams have often delivered spectacular returns because of the minimal investment required to buy one. Someone that paid $22 million for a team earning $4 million is roughly getting an 18% pretax return on capital.



Posted by TigerintheNO
New Orleans
Member since Jan 2004
41177 posts
Posted on 3/5/13 at 8:39 am to
quote:

How do MLB franchises make so much money?


The Dodgers just got $7 Billion for their 3rd tier TV rights.
Posted by LSUTIGER in TEXAS
Member since Jan 2008
13608 posts
Posted on 3/5/13 at 8:49 am to
Plus while attending a baseball game, people use lots if cash. Cash for tickets, cash for beer, cash for food. If they're claiming a profit, you know there's even more money off the books from all the cash money
Posted by SeeeeK
some where
Member since Sep 2012
28049 posts
Posted on 3/5/13 at 10:19 am to
the cardinals are worth more than 591 mil,at least, near the 700mil mark

Large, fanatic fan base, 3mil+ fans per, and season ticket holders in 23 states.

they are the only midmarket team, who can spend major market money, in any sport, and still rake in the $$$.
Posted by barry
Location, Location, Location
Member since Aug 2006
50340 posts
Posted on 3/5/13 at 10:25 am to
quote:

Salaries are expenses, debt would be stadium, etc.


It all depends on how they do their books. The players aren't typical employees. They directly generate revenue. Technically you could call them assets, the public european soccer teams consider them assets. The problem is lots of this info is either inside information or a guess. They are private entities and don't have to disclose their books.

Teams get their towns to build stadiums and the league bullies them around and threatens to leave. Its one of the few things I hate about MLB.
Posted by Pilot Tiger
North Carolina
Member since Nov 2005
73143 posts
Posted on 3/5/13 at 10:27 am to
quote:

worked out pretty good for the Braves


love the Ted

wish it wasn't in a crappy area of town
Posted by SwatMitchell
Austin, TX
Member since Jan 2005
2312 posts
Posted on 3/5/13 at 10:48 am to
quote:

Cash for tickets, cash for beer, cash for food. If they're claiming a profit, you know there's even more money off the books from all the cash money


...actually this not really likely for an MLB team/franchise with debt and investors, subject to numerous annual audits by various parties
Posted by GumBro Jackson
Raleigh
Member since Mar 2011
3114 posts
Posted on 3/5/13 at 11:19 am to
The link you provided that three teams had negative operating income (i.e. negative earning before interest, taxes, depreciation, and amortization). Mets, Phillies, and Angels.
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