With most every other professional sport moving forward with a plan to resume play, baseball’s unsettled future sticks out like a sore thumb. Inevitably, battle lines have been drawn; the owners claim poverty and hardship, the players toe their pro-rata line while dangling various season lengths and inducements, and each side claims the other is intransigent and negotiating in bad faith (one side’s argument is much stronger than the other’s as far as that’s concerned).
One of the key arguments the owners have made is that their teams aren’t profit centers. It’s never couched in exactly those words, but that’s the primary gist of the argument. When Tom Ricketts spoke about the Cubs’ finances, he focused on a specific point: that the team isn’t hoarding cash.
“Most baseball owners don’t take money out of their team. They raise all the revenue they can from tickets and media rights, and they take out their expenses, and they give all the money left to their GM to spend,” he said, in regards to earlier comments by Scott Boras. Cardinals owner Bill DeWitt approached it from a different angle in discussing the team’s real estate expansion, saying “we don’t view (Ballpark Village) as a great profit opportunity.”
I find both of these quotes quite interesting, not for what they reveal, but rather for how precisely they are formulated. Ricketts focused on cash — dollars that flow from team coffers to owners’ bank accounts. DeWitt focused on the profitability of real estate ventures, profit being a notoriously nebulous concept.
Before going any further, I’ll note that both Ricketts and DeWitt are within their rights to posture heavily, or even lie in substance, with these statements. How productive that approach is (eh) and how well it sits with us (not very!) are questions worth considering, but they’re allowed. They’re not under oath, and they’re in no way required to open their books. Parties bluff and lie in negotiations all the time, and both of these statements are, at their core, negotiations with the players using the public as intermediary.
But let’s take them at their word. This seems to be the core issue the owners are asserting: they aren’t taking home any money from their teams, even in good times, so they can’t be expected to take a loss when times get tough. No cash when times are good, cash loss when there’s a recession; the math doesn’t add up. In almost every public statement, owners mention this exact sentiment. Read the rest of this entry »