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View Full Version : D-Backs project to lose 40-50 million dollars


Jerry_Manuel
09-24-2002, 04:53 PM
Last year, the Diamondbacks lost $44.4 million despite making $13 million from winning the World Series.

More than half of the extra cash came from gate receipts from the last three games of the World Series, and the team had an undisclosed positive cash flow.

Diamondbacks management expected the 2002 losses.

The team is on a 10-year plan to post a profit. Four investors, Phoenix area businessmen Mel Shultz, Dale Jensen, Ken Kendrick and Mike Chipman, have promised an infusion of $16 million a year during the next decade in exchange for more ownership.

"This year we have the highest payroll we have ever had, and it's the highest we are projected to have. Payroll will be somewhat reduced next year,'' Kendrick said.

The Diamondbacks have not made a profit since 1998, when the team made $21 million during its inaugural season with its smallest payroll ($32.8 million) and a record 3.6 million fans.

Operating losses since 1999 will exceed $125 million after this season, according to the team.

Harris said the primary reason the team is losing money is because player salaries have increased this year by about $10 million, to $105 million. That's more than three times what the payroll was five years ago.

While about half of the current salary is deferred to future years, the entire payroll is counted on the team's profit and loss statement, which will have total revenues at roughly $120 million for the regular season, Harris said.

The team also is in debt from more than $130 million in startup costs and overruns to build Bank One Ballpark.

Last year's total revenues were $112.1 million for the regular season and $125.1 million including the playoffs.

voodoochile
09-24-2002, 05:02 PM
While about half of the current salary is deferred to future years, the entire payroll is counted on the team's profit and loss statement, which will have total revenues at roughly $120 million for the regular season, Harris said.

So the payroll isn't really $105M this year, it is only $52.5M this year...

More than half of the extra cash came from gate receipts from the last three games of the World Series, and the team had an undisclosed positive cash flow.

And the owners wonder why the players don't trust them...

ma-gaga
09-24-2002, 05:02 PM
Everybody is reducing payroll.

Seems that way. someone should make a list of teams publicly on record of reducing payroll. Even the Twins have fired a shot across the bow by having their local lackey columnist, Sid, state that there is "no way" that the Twins will have a $41MM payroll next year. ... and I'm assuming the worst. damn billionares, can't figure out how to shut up.

sigh. It's going to be a crappy offseason again. At least it won't be as bad as last year.

Anyways, I think it's fairly safe to say that revenues ARE going to decrease across the board next year. One of the lovely after-effects of the new CBA. This is what I'm seeing... I hate to go all 'Lipman' depressive, but this is the owners colluding without officially colluding.

:tool :reinsy
'buwahhahahaha'

WinningUgly!
09-24-2002, 05:08 PM
Originally posted by ma-gaga
Everybody is reducing payroll.

Seems that way. someone should make a list of teams publicly on record of reducing payroll. Even the Twins have fired a shot across the bow by having their local lackey columnist, Sid, state that there is "no way" that the Twins will have a $41MM payroll next year. ... and I'm assuming the worst. damn billionares, can't figure out how to shut up.

sigh. It's going to be a crappy offseason again. At least it won't be as bad as last year.

Anyways, I think it's fairly safe to say that revenues ARE going to decrease across the board next year. One of the lovely after-effects of the new CBA. This is what I'm seeing... I hate to go all 'Lipman' depressive, but this is the owners colluding without officially colluding.


You'll still have about 6 teams spending $100 mil+, 6-8 teams in the $50-$80 mil range & the rest of the league on the cheap. Nothing wrong with the system . :D: