Can Cleveland Afford Francisco Lindor?
I think it’s fair to say that the city of Cleveland has an image problem. I don’t know how far back this issue goes, but they’ve been late-night joke fodder for as long as I can remember. I suppose flyover country plus rust belt plus the depiction of the city and baseball team in the movie Major League adds up to a less-than-stellar perception of the city. That attitude often transfers over to the baseball club, particularly in terms of what the team can and cannot do when it comes to spending. This perception is central to the debate about whether the Cleveland baseball club can afford a massive contract extension for Francisco Lindor. However, perception isn’t always reality.
There are two principal arguments against Cleveland offering a big contract to Lindor. The first is that Cleveland is too small of a market with meager revenues, and signing Lindor would push payroll too high. The second is an offshoot of the first: If Cleveland were to sign Lindor to a huge contract, they would have their ability to compete constrained because Lindor would cost too much to keep payroll in line with typical levels. Both arguments are worth exploring.
Last season, Forbes ranked Cleveland 25th among franchises for valuation purposes at $1.15 billion. Twenty-fifth place feels pretty close to 30th, and it’s true that Cleveland’s valuation by Forbes was just $150 million higher than the last-place Marlins. It’s also true that Cleveland is closer to 18th-ranked Arizona Diamondbacks than they are to Miami. Cleveland’s market certainly isn’t the biggest in baseball, but it has close to the same number of households as Denver and is significantly ahead of places like St. Louis, Pittsburgh, Baltimore, San Diego, Cincinnati, Kansas City, and Milwaukee. It’s not just market size and valuation where Cleveland is closer to a middle-of-the-pack team than a cellar-dweller. Read the rest of this entry »