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View Full Version : Rockies Budget Crunch a Must Read For Those Preaching Higher Payroll


joecrede
12-14-2003, 04:13 PM
Article from today's Denver Post:

Rockies Most Cash Strapped Team in Baseball (http://www.denverpost.com/Stories/0,1413,36~108~1829697,00.html)

It goes back to the winter meetings of 2000, when the Rockies spent $175.3 million - money the team had to raise - on pitchers Mike Hampton and Denny Neagle. Coming off an 82-80 season, the thinking was that adding two proven winners such as Hampton and Neagle would push the Rockies into the playoffs, while the Coors Field gates whirred and revenues soared.

... But the plan failed the Rockies, who instead fell to 73-89 in 2001 and again in 2002. The gates gathered rust, revenues plummeted and the bill couldn't be paid.

So the Rockies went to a bank for loan that the team received with one stipulation: It meets the budget each season until the note is repaid. When the Rockies failed to meet the budget in 2003, owners were forced to collectively donate $12 million from their own checkbooks in what became the franchise's first capital call.

To meet the budget in 2004, the Rockies' cash payroll cannot exceed $58 million and five players - Walker, Todd Helton, Preston Wilson, Charles Johnson and Neagle - are already under contract for $48.5 million. That leaves the Rockies paying an average salary of $475,000 to their other 20 players, which isn't easy when the minimum salary is $300,000.

Article also said the Rockies had to defer $1.6M of Vinny Castilla's $2.1M salary until 2015 with zero interest! Sheesh ...

Daver
12-14-2003, 04:17 PM
Originally posted by joecrede

Article also said the Rockies had to defer $1.6M of Vinny Castilla's $2.1M salary until 2015 with zero interest! Sheesh ...

Per the CBA signed by the owners and the MLBPA in August of last year,no contract money can be deffered for more than two years after the end of the contract.

CubKilla
12-14-2003, 04:36 PM
Originally posted by joecrede
Article from today's Denver Post:

Rockies Most Cash Strapped Team in Baseball (http://www.denverpost.com/Stories/0,1413,36~108~1829697,00.html)





Article also said the Rockies had to defer $1.6M of Vinny Castilla's $2.1M salary until 2015 with zero interest! Sheesh ...

I don't think anyone here is advocating raising payroll through the roof because of the possibility that the product paid for won't yield a return. Most here are suggesting a modest raise in payroll to possibly sign a starting pitcher and CF/2B in case the rumored Konerko/Botch/Maggs/C Lee rumors fall through.

Nice try though.

cornball
12-14-2003, 05:03 PM
58 million payroll, and still have to pay their debit...in a smaller market and private stadium.

We are at 58 million because we choose to be or JR chooses to be.

joecrede
12-14-2003, 05:06 PM
Originally posted by Daver
Per the CBA signed by the owners and the MLBPA in August of last year,no contract money can be deffered for more than two years after the end of the contract.

Another source on Castilla's contract (http://rockymountainnews.com/drmn/rockies/article/0,1299,DRMN_19_2494451,00.html)

Castilla's contract is worth $2.1 million. He'll receive a base salary of $500,000 and $1.6 million in deferrals. That sum will be paid out over 15 years beginning in 2015, but the deferred portion of Castilla's contract will be fully funded by the end of the 2005 season, if not sooner.

It'll be funded by '05, but he won't receive payments until 2015.

Daver
12-14-2003, 05:12 PM
Originally posted by joecrede


It'll be funded by '05, but he won't receive payments until 2015.

Then it was done at the players request.

The league will allow extended periods on defferred money on a players contract as long as it is done by written request of the player,but the money still has to be funded within two years of the end of the contract.

The point remains you are making this a point that has no bearing on what the actual payroll numbers are.

joecrede
12-14-2003, 06:17 PM
Originally posted by Daver
Then it was done at the players request.

I'm sure Castilla requested it, but the Rockies probably suggested it. :D:

The point remains you are making this a point that has no bearing on what the actual payroll numbers are. [/B]

I wasn't sure how long a team could defer payments or the funding of such, thirty years before he gets the $1.6M is a long, long time and struck me as funny.

Daver
12-14-2003, 06:20 PM
Originally posted by joecrede
I'm sure Castilla requested it, but the Rockies probably suggested it. :D:




Then both parties would be guilty of colluding to circumvent the CBA,and could be brought up on charges for such.

I doubt the Rockies would risk that.

PaulDrake
12-14-2003, 06:29 PM
Originally posted by CubKilla
I don't think anyone here is advocating raising payroll through the roof because of the possibility that the product paid for won't yield a return. Most here are suggesting a modest raise in payroll to possibly sign a starting pitcher and CF/2B in case the rumored Konerko/Botch/Maggs/C Lee rumors fall through.

Nice try though. Thank you. My sentiments exactly.

joecrede
12-14-2003, 06:42 PM
Originally posted by cornball
58 million payroll, and still have to pay their debit...in a smaller market and private stadium.

We are at 58 million because we choose to be or JR chooses to be.

78% of Coors Field was paid for by public funds.

They can't exceed a payroll of $58M without a substantial penalty until they pay the $173.5M loan they took out to sign players to really bad contracts. This is why you don't offer a guy like Batista a three-year contract, just because someone else does, if you don't believe he's worth more than two-years.

If the Sox were in the type of financial disarray the Rockies are in they'd be doomed.

joecrede
12-14-2003, 06:46 PM
Originally posted by Daver
Then both parties would be guilty of colluding to circumvent the CBA,and could be brought up on charges for such.

I doubt the Rockies would risk that.

What benefit is there to Castilla for deferring the money? My answer would be he gets a contract with the Rockies.

joecrede
12-14-2003, 06:48 PM
Originally posted by CubKilla
I don't think anyone here is advocating raising payroll through the roof because of the possibility that the product paid for won't yield a return. Most here are suggesting a modest raise in payroll to possibly sign a starting pitcher and CF/2B in case the rumored Konerko/Botch/Maggs/C Lee rumors fall through.

Nice try though.

From $51M to ?

Daver
12-14-2003, 06:51 PM
Originally posted by joecrede
What benefit is there to Castilla for deferring the money?

Why are the Bears still paying Chris Zorich,and still will be for another 12 years?

Because that is what Chris Zorich wanted.

I have no idea why Castilla would want it set up that way,you would have to ask him.

Lip Man 1
12-14-2003, 10:42 PM
Joe says:

If the Sox were in the type of financial disarray the Rockies are in they'd be doomed.

Joe, with respect, in every other way but financially, they already are...

Lip

MRKARNO
12-14-2003, 11:18 PM
Originally posted by joecrede
Article from today's Denver Post:

Rockies Most Cash Strapped Team in Baseball (http://www.denverpost.com/Stories/0,1413,36~108~1829697,00.html)

Article also said the Rockies had to defer $1.6M of Vinny Castilla's $2.1M salary until 2015 with zero interest! Sheesh ...

A friend of mine told me that Griffey's contract has defferred payments into 2024! sorry no proof to give, but I think it wouldn't be too hard to believe given what has happened with Castilla

RichH55
12-14-2003, 11:26 PM
Originally posted by Lip Man 1
Joe says:

If the Sox were in the type of financial disarray the Rockies are in they'd be doomed.

Joe, with respect, in every other way but financially, they already are...

Lip

Can we just put that "Sky is Falling" picture as Lip's avatar and cut out the middle man?

red faber
12-15-2003, 03:17 AM
Originally posted by CubKilla
I don't think anyone here is advocating raising payroll through the roof because of the possibility that the product paid for won't yield a return. Most here are suggesting a modest raise in payroll to possibly sign a starting pitcher and CF/2B in case the rumored Konerko/Botch/Maggs/C Lee rumors fall through.

Nice try though.


exactly!!!!!!!!!!!!!!!!!

i couldn't agree more wity your comments.

there are never any guarantees that your moves will pan out.

BUT YOU HAVE TO AT LEAST TRY!!!!!!!!!!!!!!!!!!!!!!!

i will give the rockies credit for putting forth the effort.

Chisox_cali
12-15-2003, 03:59 AM
Originally posted by RichH55
Can we just put that "Sky is Falling" picture as Lip's avatar and cut out the middle man?

ZZZZZING!