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A Snapshot of Team Finances: Top Tier

Unless you make it a habit to read FanGraphs only on Fridays (and if you do, what’s up with that?), you’ve likely read Part 1 and Part 2 of this series. So you know the score. We’re taking a look at team financial health as we head into the 2013 season. You also the know which teams are in the top tier, because you’re smart and can figure that out for yourself. But we’ve come this far, so we’re going to complete the exercise. We’re nothing if not true to our word.

The top tier teams, in alphabetical order by team name.

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A Snapshot of Team Finances: Middle Tier

As we explained yesterday in Part 1 of the series, we’re looking at the financial health of all thirty major league teams. The focus is on attendance, local TV contracts, and estimated 2013 payroll. We’re not ranking the teams one to thirty because we lack the kind of detailed information that would make such a ranking meaningful. We do, however, have enough information to paint with broad strokes, so as part of our attempt to give an overview of where each team stands as 2013 begins, we’ll look at their access to monetary resources for the upcoming season.

We’ve grouped the teams in tiers. Today we look at the ten teams in the middle.

In alphabetical order, by team name:

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A Snapshot of Team Finances: Bottom Tier

Here on the site, we’re currently doing a series called the Positional Power Rankings, going through each team’s strengths and weaknesses at each spot on the field. Well, this is also a positional power ranking of sorts. The position is each team’s financial health. The ranking? More like placing the teams in tiers: the teams most constrained by their finances; the teams in the middle; and the most financially-successful teams.

We can’t get to the same level of precision on team finances because we have to rely on publicly-available information that we haven’t generated, and that publicly-available information lacks the kind of details we’d need to really flesh out the small differences between franchises in the same tiers. However, we do have enough information to paint with broad strokes, so as part of our attempt to give an overview of where each team stands as 2013 begins, we’ll look at their access to monetary resources for the upcoming season.

Today we begin our look at the financial health of all thirty major-league teams, starting with the bottom ten. Tomorrow we will look at the middle ten and on Friday the top ten. We will focus on ticket-generated revenue (attendance), local TV revenue, and player payroll. That leaves some holes, to be sure, particularly where team owners are carrying significant debt. Some of that information is publicly-available, but not all, and even the publicly-available information may not accurate or verifiable. This isn’t precise, but hopefully, it’s still informative.

With those caveats, let’s begin.

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SABR Analytics: Teams Going Deep To Attract New Fans

Bill James headlined the second annual SABR Analytics Conference in Phoenix last weekend. Brian Kenny from MLB Network’s Clubhouse Confidential acted as a roving emcee of sorts.  Joe Posnanski was there. Rob Neyer was there. And our own Dave Cameron and David Appelman were there. The three days of sessions led to lively discussions about WAR and knuckleball academies and the mythical analytics-scouting divide.

But this year’s conference wasn’t limited to questions about how best to measure and project on-the-field performance. Analytics have moved to the business side of the front office. And it’s your off-the-field performance in watching, listening to, and attending ballgames that is now the subject of intense study. Sports marketing isn’t new but the techniques used to measure fans, create new ones, and motivate both groups to purchase tickets and merchandise have become much more sophisiticated.

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With Fox Sports 1 Launch, Baseball Disappears Further From Network TV

On Tuesday, Fox Sports Media Group announced the creation of a new multi-sports cable network with programming beginning on August 17. The new network — named Fox Sports 1 — is a re-branding of the Fox-owned Speed Network. Speed is already in 90 million homes through myriad cable and satellite operators, so Fox Sports 1 will launch with a substantial potential audience. Industry experts are calling it the biggest challenge yet to ESPN’s sports-programming dominance.

Starting in 2014, much of Fox’s baseball programming will shift from the network TV channel to Fox Sports 1. Under the new national TV contracts MLB signed with Fox Sports, ESPN and TBS last summer, Fox will get a bigger piece of the baseball-on-TV pie. And that bigger piece will no longer be available for free.

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Local Interests Stymie Cubs’ Wrigley Restoration Plans

Wrigley Field is falling apart. The Ricketts family, which bought the Cubs for $845 million in 2009, has a plan to spend $300 million of their money to renovate the 98-year-old ballpark. There will be structural upgrades, improved clubhouses, new underground batting cages, upgraded luxury suites and club facilities, more and better concessions and restrooms, and a new patio area in left field to serve the new upper deck. The Cubs also want to add new LED signage and billboards in the outfield. The classic Wrigley look will remain the same: the brick, the marquee outside the ballpark, the ivy and the old scoreboard. Cubs blog Bleacher Nation has conceptual drawings, which you can view here.

The Rickettses are prepared to spend an additional $200 million to develop a hotel across the street from Wrigley, an office building and an open-air plaza to be used for neighborhood and family activities. The open-air plaza will be developed in a triangular-shaped plot just west of Wrigley on Waveland and Clark avenues.

Neither the Cubs nor the Ricketts family are asking for a dime of public money. Instead, they expect the renovation plan to add significantly to public coffers. Julian Green, the Cubs’ vice president of communications, has said 800 new construction jobs will be created to complete the project and 1,300 new permanent jobs will be created with the new hotel, the office building and the open-air plaza. Green also estimates that, once completed, the new Wrigley complex will generate an additional $12 million in sales and property taxes for Chicago — plus an additional $3 million in sales tax for Cook County and an additional $4 million in sales tax for the Illinois. Overall, Green said the renovation will result in an additional $1.2 billion in economic activity and taxes during a 30-year period.

Sounds perfect, doesn’t it? A privately-funded stadium project that will benefit the city, county and state in the short and long term?

Not so fast.

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With Passbook App, MLB Takes Dynamic Pricing To Next Level

Major League Baseball announced Tuesday that 13 teams will accept mobile tickets this season via Apple’s Passbook app. Passbook is “designed to store membership cards, tickets, coupons and boarding passes — a bit like a digital wallet.”  Fans who purchase tickets via MLB’s AtBat app can send that ticket information directly to Passbook, which stores the ticket bar code for use at the ballpark gate.

Via GigaOM, here’s what it would look like on your iPhone.

RoyalsPassbook

The Giants, Mets, Red Sox and Royals participated in an MLB-Apple pilot program at the end of last season. During that two-week trial period, 12% of single-game tickets purchased through AtBat were stored in Passbook. Apple was criticized for Passbook’s lack of usability when the app was first released last September, so the 12% participation rate was encouraging. The app was updated to increase usability with the release of Apple’s new iOS 6.1 software.

MLB identified seven additional teams that will accept tickets via Passbook this season, including the Twins, Orioles, Brewers, A’s, Pirates, Tigers and Cubs. Two more teams are expected to join before the start of the season on March 31.

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A-Rod’s Cousin Is Selling Replica World Series Ring. So What?

Spring training games are underway. The hot stove stories that kept us going all winter have been replaced by stories about non-roster invitees trying to make a major-league roster, behind-the-scenes looks at what your favorite player did over the winter, and columns drawing conclusions about spring statistics. And Alex Rodriguez stories. There are always A-Rod stories.

So it was on Sunday when several outlets reported that A-Rod’s cousin was selling Rodriguez’s 2009 World Series ring. And not just any cousin, but Yuri Sucart, the person A-Rod fingered as the person who convinced him to take steroids while he played for the Texas Rangers. Sucart was later banned from MLB clubhouses but his name recently resurfaced in news reports about Biogenesis, the Miami anti-aging clinic that purportedly supplied PEDs to A-Rod and others.

A-Rod. Traitor. Biogenesis. PEDs. Greedy cousin. Perfect storm.

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As Spring Games Begin, Local TV Issues Still Percolating

Spring training games kick off today with four tilts: two in the Grapefruit League and two in the Cactus League. All 30 teams will be in action in Saturday. Same for Sunday, when live television broadcasts start. That’s right. Major League Baseball, live on your television for the first time since October.

Well, if you live in the right place and have the right cable and satellite operators.

If you’ve been following my posts over the past several months, you know what I’m talking about. I wrote about every nook and cranny of the baseball-on-television landscape. I dissected the local TV contracts for all 30 teams. I analyzed the Dodgers’ proposed new TV deals. I examined News Corp.’s billion-dollar investment in the Yankees’ YES Network. I explained how the new revenue-sharing program in the collective bargaining agreement is flexible enough to capture the new local TV revenue. I talked about MLB’s blackout policy and the lawsuit trying to put a stop to it. I looked at the dispute between the Orioles and the Nationals over rights fees from MASN and the one between Fox Sports San Diego and several cable companies that kept the Padres off hundreds of thousands of televisions in San Diego last season.

As the 2013 spring season gets underway, many of these disputes remain unresolved and new ones are on the horizon. Plus, there’s a growing sense that the extraordinarily rich local TV deals we’ve seen in the past few years are reaching a tipping point. That is, that the live sports programming bubble may about to burst.

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Torre Continues to Resist Changes on Home-Plate Collisions

As vice president of on-field operations, Joe Torre is Major League Baseball’s point man on rule changes. If Torre doesn’t think a rule change is warranted, a proposed change isn’t going to get very far. He’s not the final arbiter — rule changes are made only by a vote of the owners and the players’ union — but he is the gatekeeper of rule-change ideas.

In the past several years, Torre’s been fending off requests to consider rule changes on home-plate collisions. Those requests reached a fever pitch in May 2011 after Scott Cousins voilently collided with Buster Posey, knocking the Giants’ catcher out for the season. Just days later, Astros’ catcher Humberto Quintero and Pirates’ catcher Ryan Doumit suffered serious injuries after home-plate collisions. Torre is a former catcher, and many hoped his experiences behind the plate would make him receptive to protecting catchers from head-on collisions. But, in fact, the opposite has been true.

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