Post-Balfour Payroll Update

I see where Andrew has stated $60 ,million will lose money

How do we expect to keep Sonny, Garza, BJ?

To keep this team’s core players, we’re looking at a $90-100 million dollar payroll

What do we need to draw to do that?

Get a deal like the Sox/Yanks and get their own TV dollars? Pair up with the Lightning and get a real TV powerhouse that they completely control. A true TBSN not like BHSN or Sun Sports or FSN Florida. There is additional money there IF they can buy a network and get the ads.

I think the actual salary costs of Price and Niemann are higher, including prorated shares of their signing bonuses. Since those bonuses are also paid over their original majors contracts lengths, this is also true from a cash outlay basis. So you should add $933K to Price’s deal, and $640K to Niemann’s.

Still find it hard to believe the Rays (or any other team) would lose money at a $60MM payroll. The take from the Central fund (national media contracts, merchandise, web propertires) should come in between $30-35 MM, and revenue sharing should still be near $30MM at least. That is money forthcoming from the ‘08 season revenue, where revenue ran equal to or above ’07. The Rays RS take will probably drop a bit given their larger than average attendance increase, eimination of free parking, etc. But that’s still likely over $60MM total before a ticket is sold, with all local revenue to follow – revenue sharing receipts being the amount paid to a club over the amount they contributed to the fund.

I go through this discussion every time this issue comes up. Not trying to criticize the org – they are far from alone in making such statements. And I’m sure their concern for team finances entering this season are justifiable. Unfortunate the economy has tanked just as the Rays were primed for a possible attendance boom coming off the WS season. Of course, they could still see significant improvement there, and I’ve got to believe they’ve got some upside on the local broadcast revenue front assuming more fans could be watching. But being a private co. they don’t have to open their books, so who can prove whether they’re tap dancing on this projection? But it doesn’t add up to me – many outside analysts expected them to be highly profitable last season before their competitive emergence, attendance bump, etc. The payroll increase surely cuts into that without continued revenue expansion, but I don’t see the numbers turning so.

Any news on season ticket sales trends? That will be a big indicator for 2009, for all league clubs.