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Future Payrolls

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Offline  Re: Future Payrolls
#21

Posted: November 30, 2018, 2:46 PM Post
Posts: 229
Mr Southpaw said:
DHonks said:
wow, we have no clue whatsoever to the Brewers spending on Minor League players, facilities, support systems, etc. We have no clue what the Brewers generate for revenues. It would be ridiculous for anyone to make a claim that MA has pocketed $75M. I would assume all of the revenues stay with the franchise and no money is going to him.


Mark and friends bought the Brewers in 2005 for $223M. If he sold it today there would be a "B" in the amount. He also has an investment banking firm which allowed him to buy the Brewers.

He has a personal wealth of $700M. He is a great owner and will spend when needed, because it is more than just a business, it is his adult toy. That being said it is still a business and he still wants to make money.


Yes he wants the team to be profitable because the alternative is that he (and his partners) would need to contribute capital yearly. However that does not mean the ownership group is looking for a revenue stream from the team. They are demonstrating that they will invest profits back into the organization whether that be players, facilities or owning a minor league affiliate. The owners know there will be a payday down the road when the team is sold but they are not looking to pull money out of the organization with distributions of profits to the owners.


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Offline  Re: Future Payrolls
#22

Posted: November 30, 2018, 3:30 PM Post
Posts: 7523
Mr Southpaw said:
DHonks said:
wow, we have no clue whatsoever to the Brewers spending on Minor League players, facilities, support systems, etc. We have no clue what the Brewers generate for revenues. It would be ridiculous for anyone to make a claim that MA has pocketed $75M. I would assume all of the revenues stay with the franchise and no money is going to him.


Mark and friends bought the Brewers in 2005 for $223M. If he sold it today there would be a "B" in the amount. He also has an investment banking firm which allowed him to buy the Brewers.

He has a personal wealth of $700M. He is a great owner and will spend when needed, because it is more than just a business, it is his adult toy. That being said it is still a business and he still wants to make money.


In the past, studies have shown that sports owners don’t make much money while they own the franchise. However, they make money when they sell.


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Offline  Re: Future Payrolls
#23

Posted: December 02, 2018, 9:18 AM Post
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BrewersSuperCollector said:
KCBrewerfan34 said:
How much has MA pocketed the last 2-3 years? 75 million? Plus the Brewers received what 50 million from that digital agreement. Royals carried 130 mill + during their run. I agree the time is now


I think the 50 million from the digital agreement went to Maryvale being rebuilt.

That is what Haudricort has stated on multiple occasions, but it doesn’t totally make sense to me. It’s not like they cut a $60 million check for the Maryvale renovations and operations costs. I assume it’s a capital expenditure they have budgeted properly in order to finance over time. Sure the financing of the capital project will likely come from the same pool of money that includes the BAM revenue, but I have a hard time believing they just took a lump sum of money from “X” and spent it all on “Y”.


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Offline  Re: Future Payrolls
#24

Posted: December 02, 2018, 10:03 AM Post
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If the Brewers spent $120 million on payroll next season they would still be in the bottom 1/3 of the league in salary. I agree that the front office is going to be careful to leave themselves with some payroll flexibility to utilize during the season as needed. I also tend to believe that the maximum payroll the Brewers would be willing to take on is closer to $125 million than it is to $110 million.

One thing the Brewers have going for them from a salary standpoint is they really haven’t had to invest a lot of money into their pitching. The Brewers don’t have a single pitcher that will make more than $7 million next season.

Here are the Brewers top ten pitcher salary commitments for next season...

Chacín - $6.75 million
Anderson - $6.5 million
Knebel - $4.9 million (arbitration projection)
Nelson - $3.7 million (arbitration projection)
Jeffress - $3.175 million
Guerra - $2.7 million (arbitration projection)
Albers - $2.5 million
Davies - $2.4 million (arbitration projection)
Barnes - ~$0.6 million (pre-arb salary)
Hader - ~$0.6 million (pre-arb salary)

I know their budget is in another stratosphere, but by contrast the Cubs have the following pitching salary commitments for the 2019 season...

Lester - $27.5 million
Darvish - $20 million
Hamels - $20 million
Chatwood - $12.5 million
Quintana - $10.5 million
Morrow - $9 million
Hendricks - $7.6 million (arbitration projection)
Cishek - $6.5 million
Strop - $6.25 million
Kinztler - $5 million

Again, I realize it’s comparing apples to oranges, but the Brewers current top 10 pitchers combined are going to cost the team less than $35 million next season while the Cubs have $125 million sunk into their top 10 pitcher salaries.


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Offline  Re: Future Payrolls
#25

Posted: December 02, 2018, 11:35 PM Post
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I would be disappointed if there is a hard budget cap at the current time. I would have been just as disappointed if 2 years ago we had signed Edwin Encarnacion or Dexter Fowler or Brett Cecil just because we had room in the budget to do so.


We need to find good values that will improve the ballclub, and now is a good time to do that--particularly after letting Schoop go to Free Agency. There is a hole in the roster there.


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Offline  Re: Future Payrolls
#26

Posted: December 03, 2018, 10:39 AM Post
Posts: 9778
True Blue Brew Crew said:
Right, and a note for everyone to consider, anything over $105 million will be an all-time franchise high. Mark A has repeatedly signed off on going over budget when the team was in position to contend.


And important to note that sky high record was over half a decade ago. Basic inflation would say that would be about $115mil now...though I believe they said that payroll was putting them at a loss. Regardless anything in that range would be a pretty good guess. The TV deal is coming. There is an old article out there that stated when it is "rumored" to end...but I believe 2019 was the year. I am not sure how big of an increase we will see on that front, but it will be well into the 8 figures yearly even if we are a small market. Our deal is stupidly outdated.

Long term I think our payroll could be sustained at $125mil or slightly more I we competed consistently enough.


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