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Tampa Bay Rays Owner Stuart Sternberg On Payroll: "I don't see it going up next year"

"I don't see it going up next year," Sternberg said. "If anything, this year we borrowed from the next couple years, it's money saved from previous years, and money that was earned last year.

St. Petersburg Times

It'll be interesting to see how this changes if attendance raises this season by more than expected and the Rays go deep in the post-season again. Otherwise it's a situation of good news, bad news. The good news is that the team is deep at every position, meaning holes can be filled through trades or simply standing pat. The bad news is that there might be some cutting to do.

Star-divide

The Rays can conceivably fill at least 22 roster spots next year for 60.2 million, but that's without accounting for raises given to players like B.J. Upton, Jason Bartlett, Dioner Navarro, Grant Balfour, and J.P. Howell through the arbitration process. Salaries like Dan Wheeler (3.5), Bartlett (1.98 with arbitration eligibility likely to raise over 2 mil), and Akinori Iwamura (4.25) combined with the players under control for less make them most likely to be moved. Reid Brignac will make 400k and could play either shortstop or second base. Willy Aybar might be able to take over at second. Middle relievers should be paid like highly fungible assets -- meaning, just like they should be. 

The big salaries are Carlos Pena (10.125 mil), Carl Crawford (10 mil), Pat Burrell (9 mil), and Scott Kazmir (8 mil) while everyone else is below 5 million. Pena, Burrell, and Crawford will all be in the final years of their contracts, meaning the Rays will have to make a decision on each. Honestly, there's a real possibility none of them play with the team beyond 2010. Pena and Burrell are likely nearing the decline in their offensive production, but Crawford is the difficult one. Will Desmond Jennings continue to progress -- and equally as important, stay healthy - - enough to be ready? Can Fernando Perez take over in left?

Crawford's WARs since 2003; 2, 4.7, 4.9, 4.5, 3.3, 2.7. Is there something more than poor luck over the last two years or has Carl already peaked at a young age? Even if you assume Crawford is a 10 < x < 15 run defender, he's a few years over the time when you would start to expect a decline - about a run annually post age-25. There's a million different questions about Crawford and 2009 is going to be absolutely monumental. More on him Monday though.

I understand financial restrictions and low placement on the revenue curve, however I'm not so sure the definitiveness needs to be there. I'm willing to accept that not every player is going to be here beyond his initial few seasons, and I'm fine with that - until it actually happens to someone worthwhile - but this makes you appreciate the Longoria and Shields extensions even more.

Welcome to reality I suppose. We're still going to be competitive, and if there's a front office I would entrust to squeeze the most out of a payroll, it's the one lead by Andrew Friedman.

 

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Posturing toward what?

Last season the ‘Rays picked up CC’s option prior to the season. It hasn’t happened this season so it does seem as if Carl will see his last days in a Tampa Bay uni in 2009. If the Rays are subject to injury I can see him moved by the A.S. break which will be a crying shame as Crawford can set records with this team that may never be broken if given another contract. CC is also in the prime of his career, I do not think you can replace what Crawford brings to the table and they way he turned it up a notch in the playoffs. He’s a PTP’er as Dickie V puts it.

The only way I see Carl staying in a TB uni in 2010 and beyond is if he’s aware that the economy isn’t going to provide for a $10M + contract and he wants to stay and see this thru. There may be a good shot as this “team” has gelled and he may stay for the service mans discount. I don’t see Carl being from Houston fitting in that well in the ego-maniac Yankee line up. It’s just not a good fit no matter how much $$$$ they will throw at him. And they will if he’s a FA after this season.

Another Q is why the payroll will remain at $60M? This team is a cash cow even with the payroll at $60M. What Stu doesn’t state is his salary from the Rays. This is a team with approx. $160M in generated revenues a season ago, a $45M payroll with only a $27M operating expense, the lowest in the league. So where does that other approx. $90M go is the question?

Posturing you say? The only posturing will be by Sternberg & co. to get a new stadium which this team needs. It also needs to be built in Tampa to get away from the old folks home of Pinellas co. Tampa is the epicenter to generate revenues and the center of every population around the Bay area. With the Marlins getting their stadium I assume the Rays brass will be doing a whole lot of “posturing” especially if they are succeeding this year for a new stadium which I am in total agreement with.

by ConnorManning on Mar 29, 2009 9:45 AM EDT up reply actions  

You got a source or a link?

For that information? I am trying to find this information out. These numbers seem correct and realistic.

Joe

by joedobr on Mar 30, 2009 1:17 PM EDT up reply actions  

Good post.

Pretty much succinctly outlines major questions looking forward.

Part of me thinks the quote simply confirms what we already knew. Also, with so many revenue uncertainties in play, perhaps the Rays have indeed reached what they consider the limit of what they can prudently spend given their small-market, limited revenue status. For example, even if the Rays revenues are up, if the rest of the league is down I assume the Rays will ultimately receive less in league revenue sharing going forward and there are signs it could be a belt-tightening year for the league. In what is likely an extreme example, there are reports the Tigers have seen a ~44% drop in season tickets from last year.

On the other hand, my cynical side says the quote is indirect posturing concerning the need for a new stadium.

Today, we are all Honkballers.

by RATW on Mar 28, 2009 11:05 PM EDT reply actions  

Every team is taxed 31% of local revenue

Link

all teams pay in 31 percent of their local revenues and that pot is split evenly among all 30 teams. In addition, a chunk of MLB’s Central Fund — made up of revenues from sources like national broadcast contracts — is disproportionately allocated to teams based on their relative revenues, so lower-revenue teams get a bigger piece of the pie.

Today, we are all Honkballers.

by RATW on Mar 29, 2009 2:38 PM EDT up reply actions  

it's going to suck enormously

to see players who came up with us donning red sox and yankee gear.

by yeseggs on Mar 28, 2009 11:05 PM EDT reply actions  

i would also like to make this point.

i think most would agree that, on the whole, small market teams, of which we are one, have more difficulty competing year after year than large market teams do.

which would lead me to believe that this team is currently at a crest in terms of success. when we start to lose players because we can’t pay them, and when we trade large contracts in order to replenish the farm system and “rebuild,” we will once again know what it’s like to be in a trough.

does anybody really see this team sustaining the kind of success we’re having now on a yearly basis for the next, say, ten years? the longer we can keep this core together the better, but it won’t last forever.

by yeseggs on Mar 28, 2009 11:10 PM EDT up reply actions  

dude, already happened

Baldelli hit a three run homer today. Watch him burn us this year.

by plasticman on Mar 29, 2009 12:50 AM EDT up reply actions  

according to bizofbaseball.com

the Rays made ~$16,400,000 last year in playoff revenue, I don’t know how much we have borrowed against the future if these figures are accurate within a couple of million. One good thing is the bay area has always loved a winner, so hopefully the walk ups and the increase in 2009 revenues will be able to increase the currently sustainable payroll. If not the 2010 payroll is going to have to be taken out on Crawford and maybe even Kazmir, because the subtraction of Bradford and Percy aren’t going to be able to cancel out the increases in arb. eligible players. Hopefully DJ can stay healthy and take over midway through 2010, if not I wouldn’t have a problem with Fernando Perez taking over LF in 2010/2011.

Kaz/Shields/Garza/Sonny/Price/Davis/Hellickson-necessitate a drool cup or a 7 man rotation

by CubFanRaysaddict on Mar 29, 2009 12:15 AM EDT reply actions  

Expecting Jennings to be ready next year

is extraordinarily optimistic. He’s had 85 AB’s in A+ ball. He should be there again to start ‘09. Just can’t see him ready to play in the majors in 2010 outside of September. Possible, but very unlikely. Perez is the more likely to step in here if CC is moved.

Of course, if CC repeats his ‘08 performance it will make the decision to pick him up all the more difficult. Does anyone know what his factors are determining the value of the option next year? There’s a large spread in the numbers – $1.5 MM. I assume it’s based on PA’s and/or games, since that’s all it can be.

by nyyfaninlaaland on Mar 29, 2009 4:34 PM EDT up reply actions  

I think Sternberg and Co. are extremely conservative when it comes to projecting their finances.

My guess is you see some of the “easy” money shed like Percival and Bradford’s contracts shed for 2010 and it will at least be close to enough to cover arb increases.

At some point or another I could see us trading Crawford and Kazmir for a boatload of young/cost controlled talent.

Another successful season and playoff run would go a long way in making sure we don’t have to worry about financial concerns in the coming offseason, but I’m sure Sternberg and Co. are hoping for the best and planning for the worst.

by twenty5psi on Mar 29, 2009 2:50 AM EDT reply actions  

Problem with this is

the "easy " money (about $9 MM for those 2 plus Kapler) just covers the already contracted increases for Pena, Kaz, Shields, Burrell, Longoria, Aybar, and Wheeler ($8.25 MM). Picking up the options on Aki and CC add from $2.75 to $5.15 MM depending on their escalators. Shouse’s would add .55 MM.

Wheeler ($3.2MM + .3 in ‘10) could be traded – but if he doesn’t perform this year how much will he be worth, and if he does why trade him? I’d expect Gross could be traded or non-tendered – that’s $1.25 MM. Not picking up Shouse’s $1.35 + .55 is possible, as is the case with Nelson at $1.3 MM. But they have to be replaced by someone.

And the arbs will likely be pricey if they have good years – Balfour (Arb 3), Nelson, Cormier, Bartlett, and Navarro (2), plus BJ, Garza, Howell, Riggans. and Hammel could join in this year (1 or S2). That’s some serious cash – what kind of raises do you project for BJ and Garza alone?

One of Kaz or CC being moved is what could be required to hold the line, if the line needs be held.

But I also think there’s some negotiating going on here, though if I were a Rays fan I wouldn’t appreciate the tactic or be on the owners side. But I’ve wasted my time on the revenue side enough here to rehash that conversation.

by nyyfaninlaaland on Mar 29, 2009 5:50 AM EDT up reply actions  

and money that was earned last year.

gppd to know we were in the black

by walkoffwalk on Mar 29, 2009 8:31 AM EDT reply actions  

Money,Money,Money!

Winning, which leads to more attendance, which cures money problems!
The current group of Rays have the ability to WIN every year!
Of course there will be roster changes every year!
Lets worry (talk) about 2009!!

by Bud Lite on Mar 29, 2009 9:38 AM EDT reply actions  

I say it's posturing as well

Sternberg’s comments don’t make much sense to me either. I like the Burrell signing if we have the money — but if not, I’d much rather see those DH ab’s go to Aybar/Kapler/Gross/Joyce and retain the flexibility to keep the core together through 2010. If the core was truly (potentially) threatened next season, or in other words if the Rays really put themselves in a place where they could be over-stretched going into next season then it makes the signings of Burell, Nelson and Shouse look bad.

And I just don’t see Freidman & Co. pinning the Rays into that kind of a corner.

by JBradley on Mar 29, 2009 9:48 AM EDT reply actions  

Comments seem counter-intuitive

I waited a couple of days before commenting on this, and I simply don’t get the rationale of telling the world what your 2010 plans are before the 2009 season. Inherently, the Rays are AUTOMATICALLY sellers this year and probably into next year, which COULD be perceived as a dropoff in quality unless if a prospect like Brignac or like RJ mentioned Desmond Jennings OVERWHELM the organization and they would be better served continuing their development in the majors.

I don’t care for our polyanna media not questioning Stu Sternberg even harder about this. In lamens terms you can probably kiss one of Pena or Crawford goodbye, probably after this season and maybe next. You may be able to cannibalize the bullpen or a combination of Bartlett and Aki to save about $10 million, but can you get to where you are now?

Why even do it in the first place? It seems like yet another stadium shot by Stu. Why do you put yourself in a corner telling the world you will be a seller at a deadline and you can’t add on? I am not going to understand this.

Joe

by joedobr on Mar 30, 2009 9:41 AM EDT reply actions  

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