Old Sweater
02-09-2007, 12:08 AM
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The "truth" about the Rockies (What you won't hear
RockiesFan
Member
User Rating 3.0/5 this site
556 posts this site
Posted on 02/04/2007 11:26 PM
The "truth" about the Rockies (What you won't hear
The Colorado Rockies front office and PR department have been working overtime to cast the Colorado Rockies as a "small-market" team without the financial resources to compete in MLB. Let's see if Charlie Monforts spin that the Rockies can't compete ring true:
Every year Forbes, a preminent financial and business media source, ranks the operating income, franchise valuation, and revenues of all Major League Baseball clubs as part of their annual Business of Baseball report. In the Financial World wealth creation depends on the ability to predict the earnings of billion dollar corporate earnings down to a mere one cent per share. In fact when financial analysts earnings and revenue expectations aren't in league with real quarterly and yearly results by a cent or more its called a surprise and has incredible market implications.
Suffice it to say that the Business of Baseball player payroll costs publically available (That bum makes what?), details of stadium leases with municipal tax districts publicly negotiated, and the details of broadcast contracts discernable to market segment analysts, its elementary to calculate the total revenues of the various Major League Baseball franchises.
So what do we find out. Is Colorado really a "small-market" team prevented by the current economics of baseball from competing for a World Series championship?
Interestingly, the Detroit Tigers even with their World Series run and all the accompanying revenue that playoff games bring had only one million dollars in total revenues than the Colorado Rockies in 2006.
The Chicago White Sox won the 2005 World Series playing in a "large market" and had lower total revenues than the Rockies even considering their playoff income.
The St. Louis Cardinals had a World Series run in 2004, ultimately losing to the Boston Red Sox. The Cardinals play in St. Louis which has always been a HUGE baseball town, yet even with playoff revenue they managed to eke out only $7 Million more dollars in total revenues than the Colorado Rockies in 2004 revenues.
What does this mean for Rockies fans? It means that our ballclub even with minimal attendance has the financial model to not only compete in the NL West but to earnestly compete for a championship.
Should Rockies ownership ever actually field a team with player playroll proportionate to the rest of MLB teams the Rockies would one of the leading clubs in total revenues.
Major League Baseball teams on average spend 48.9% of all revenue dollars on player payroll. The Colorado Rockies spend only 28.1% of revenue dollars on player payroll. Only one team in all of MLB spends a lower proportion of revenues on player talent.
So don't be too frustrated Rockies fans. It could actually be a lot worse. Its not that our team can't compete due to real financial constraints like franchises in KC, Minnesota, or Oakland. Its just that ownership chooses to pocket their revenue millions at a disproportionate rate than other MLB owners.
So the next time Charlie Monfort talks about how playing in a "small market" prevents the Rockies from retaining their players, remember that our beloved franchise actually has the resources to compete. They just choose not to. Obviously the Monforts have better places to deposit club generated revenue than in fielding a MLB quality ballclub
The "truth" about the Rockies (What you won't hear
RockiesFan
Member
User Rating 3.0/5 this site
556 posts this site
Posted on 02/04/2007 11:26 PM
The "truth" about the Rockies (What you won't hear
The Colorado Rockies front office and PR department have been working overtime to cast the Colorado Rockies as a "small-market" team without the financial resources to compete in MLB. Let's see if Charlie Monforts spin that the Rockies can't compete ring true:
Every year Forbes, a preminent financial and business media source, ranks the operating income, franchise valuation, and revenues of all Major League Baseball clubs as part of their annual Business of Baseball report. In the Financial World wealth creation depends on the ability to predict the earnings of billion dollar corporate earnings down to a mere one cent per share. In fact when financial analysts earnings and revenue expectations aren't in league with real quarterly and yearly results by a cent or more its called a surprise and has incredible market implications.
Suffice it to say that the Business of Baseball player payroll costs publically available (That bum makes what?), details of stadium leases with municipal tax districts publicly negotiated, and the details of broadcast contracts discernable to market segment analysts, its elementary to calculate the total revenues of the various Major League Baseball franchises.
So what do we find out. Is Colorado really a "small-market" team prevented by the current economics of baseball from competing for a World Series championship?
Interestingly, the Detroit Tigers even with their World Series run and all the accompanying revenue that playoff games bring had only one million dollars in total revenues than the Colorado Rockies in 2006.
The Chicago White Sox won the 2005 World Series playing in a "large market" and had lower total revenues than the Rockies even considering their playoff income.
The St. Louis Cardinals had a World Series run in 2004, ultimately losing to the Boston Red Sox. The Cardinals play in St. Louis which has always been a HUGE baseball town, yet even with playoff revenue they managed to eke out only $7 Million more dollars in total revenues than the Colorado Rockies in 2004 revenues.
What does this mean for Rockies fans? It means that our ballclub even with minimal attendance has the financial model to not only compete in the NL West but to earnestly compete for a championship.
Should Rockies ownership ever actually field a team with player playroll proportionate to the rest of MLB teams the Rockies would one of the leading clubs in total revenues.
Major League Baseball teams on average spend 48.9% of all revenue dollars on player payroll. The Colorado Rockies spend only 28.1% of revenue dollars on player payroll. Only one team in all of MLB spends a lower proportion of revenues on player talent.
So don't be too frustrated Rockies fans. It could actually be a lot worse. Its not that our team can't compete due to real financial constraints like franchises in KC, Minnesota, or Oakland. Its just that ownership chooses to pocket their revenue millions at a disproportionate rate than other MLB owners.
So the next time Charlie Monfort talks about how playing in a "small market" prevents the Rockies from retaining their players, remember that our beloved franchise actually has the resources to compete. They just choose not to. Obviously the Monforts have better places to deposit club generated revenue than in fielding a MLB quality ballclub