FanPost

Rays Payroll - Why is it not growing?

I am trying not to be accusatory. I have supported the new Rays ownership since it replaced the Naomoli era, and I agree with ownership that in order for Tampa to remain competitive in the future, a new stadium/location must be secured sooner rather than later.

However I am getting the feeling that to a large degree we are being duped by ownership and that profits are being pocketed rather than being used to improve the on field product. Ownership should profit from new revenue streams and an increased competitiveness compared to the Naomoli teams. They earned it. But are they pocketing all of the new revenue?

Prior to 2013, the Rays spent roughly $50 million to $75 million per year once the franchise became competitive. Forbes suggested more than once that the Rays were profitable at this level of payroll. This may or may not be true, but I have a hard time believing the team was losing its shirt with a payroll in the bottom quartile.

In 2013, the results of the new national TV deal added approximately $26 million in new revenue stream to each team. Yet the Rays kept their payroll at recent norms, settling in not much above $60 million.

http://www.awfulannouncing.com/2013/may/how-mlb-splits-your-tv-dollars.html

In 2014, the new ESPN deal kicks in and it is approximated that each team will receive an additional $27 million in annual revenues. However the Rays (through Sternberg) have already made it clear that due to poor attendance figures, payroll may have to drop.

Drop? Our revenue stream will have grown by ~$53 million per year from 2012 to 2014, and payroll needs to fall? There is no way that disappointing gate receipts have caused us to lose the $53 million we netted from the national TV increases. By my estimate, payroll should be somewhere between $100 million and $130 million per season with these new revenue streams.

What am I missing. It doesn't add up for me.

This post was written by a member of the DRaysBay community and does not necessarily express the views or opinions of DRaysBay staff.

X
Log In Sign Up

forgot?
Log In Sign Up

Forgot password?

We'll email you a reset link.

If you signed up using a 3rd party account like Facebook or Twitter, please login with it instead.

Forgot password?

Try another email?

Almost done,

Join DRaysBay

You must be a member of DRaysBay to participate.

We have our own Community Guidelines at DRaysBay. You should read them.

Join DRaysBay

You must be a member of DRaysBay to participate.

We have our own Community Guidelines at DRaysBay. You should read them.

Spinner.vc97ec6e

Authenticating

Great!

Choose an available username to complete sign up.

In order to provide our users with a better overall experience, we ask for more information from Facebook when using it to login so that we can learn more about our audience and provide you with the best possible experience. We do not store specific user data and the sharing of it is not required to login with Facebook.

tracking_pixel_9351_tracker