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Brewers Payroll 2020 and beyond

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Offline  Re: Brewers Payroll 2020 and beyond
Posted: December 16, 2020, 2:15 PM Post
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The Weatherman
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Simba2020 said:
There definitely is a supply and demand issue that has driven up the overall value of sports teams. However, revenues are absolutely important in determining the value of a franchise. Teams trade on a multiple of revenue for a reason. The revenue multiples aren't the same for all teams of course. Big markets like New York, Chicago and LA will have higher multiples than those in Pittsburgh, Milwaukee, Cleveland and Kansas City. Owning a big market team offers greater notoriety, greater growth potential, larger pool of buyers, etc.

But there is a reason that the Yankees are worth twice what the Mets are. They play in the same market both with newer stadiums. While owning the Yankees would be a bigger feather in your cap than owning the Mets, it's not worth double. The reason for the difference in value is that the Yankees produce roughly twice the annual revenues.

Another way to look at it is let's assume Mark A. was willing to sell the Brewers for $1 billion. After arriving at that decision, Fox comes in and tears up the existing local TV deal and triples the carriage fees. American Family decided to kick in an extra $10 million a year in naming rights. Suddenly the Brewers revenues are up $50 million per year. Which team would you rather own? The team that generates X in revenue or the one that generates X + $50 million? I suspect we would all rather own the latter and accordingly, would be willing to pay more to do so. Thus the franchise value would go up due to the increase in revenues. Certainly Mark A. would not be willing to sell the same team for $1 billion after suddenly adding $50 million in annual revenues.


Great points here--I like the Yankees/Mets analogy.


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Offline  Re: Brewers Payroll 2020 and beyond
Posted: December 22, 2020, 7:08 PM Post

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for those who are tabulating 2021 payroll, don't forget that waiver claims cost $100,000.


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Offline  Re: Brewers Payroll 2020 and beyond
Posted: December 23, 2020, 6:34 AM Post
Posts: 132
djoctagone said:
for those who are tabulating 2021 payroll, don't forget that waiver claims cost $100,000.

I thought it was $20,000


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Online  Re: Brewers Payroll 2020 and beyond
Posted: January 09, 2021, 7:58 AM Post
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https://www.google.com/amp/s/www.bizjou ... y.amp.html

Mark A closed a deal to sell a majority stake in his investment firm. Would this have any impact on the payroll for this upcoming year? If there was ever a year for him to dig a little bit deeper into his pockets, this would be the year with a lot of teams seemingly not interested in spending much money.


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Offline  Re: Brewers Payroll 2020 and beyond
Posted: January 11, 2021, 8:56 AM Post
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wibadgers23 said:
https://www.google.com/amp/s/www.bizjournals.com/milwaukee/news/2021/01/07/brewers-attanasio-closes-deal-to-sell-majority.amp.html

Mark A closed a deal to sell a majority stake in his investment firm. Would this have any impact on the payroll for this upcoming year? If there was ever a year for him to dig a little bit deeper into his pockets, this would be the year with a lot of teams seemingly not interested in spending much money.


Looks like Attanasio's retirement plan. He's 63, gets a big payout now while continuing to work in a diminished role for five years and then gets his final payout at age 68, when he can finish his career and spend his time cheering for the Brewers. Good for him, he earned it.

As to whether this will effect the Brewers' payroll, I'd guess no because the money he just got is for him to be able to live out his life the way he wants. If he takes a chunk of it to put into Brewers' payroll (assuming that would mean it would go over payroll and likely be "lost") then he doesn't have his job to fall back on to replenish it... it's just gone. If anything, being retired would probably mean he's less likely to take extra risk with his personal money.

Attanasio has always been willing to go a little over budget if he thinks it's a meaningful move, and I agree with you that this could be a year where a little extra spending could go a long ways. But it's also a year where an owner could lose a lot of money if fans aren't allowed in the stands. If the next couple of weeks tick by and there are still good players without contracts, I still think that Attanasio will jump, and we'll get a good player or two on one-year deals.

"The most successful (people) know that performance over the long haul is what counts. If you can seize the day, great. But never forget that there are days yet to come."

~Bill Walsh


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Offline  Re: Brewers Payroll 2020 and beyond
Posted: January 11, 2021, 10:09 AM Post
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Mark A. will never be at a loss for $ in retirement.

I find it hard to relate to that myself.

Put your money into the team Mark, you'll still live like a king the rest of your life...

"I'm sick of runnin' from these wimps!" Ajax - The WARRIORS


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Offline  Re: Brewers Payroll 2020 and beyond
Posted: January 15, 2021, 2:07 PM Post

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Posts: 3373
Brewers Numbers said:
This is where I have them right now. Clearly this isn't going to be the opening day roster (I hope) but if the season did start tomorrow this is my best guess. I'm trying to do this from the team's perspective so I have Hader at $6.8M and Woodruff at $4.5M, the highest estimates from MLB Trade Rumors, because from a team planning perspective that would be the "worst case scenario". I had them starting the day with a total overall payroll of $95,171,637 so it is a decrease of $11,693,000.

$6.675 mm for josh hader. $3.275 mm for brandon woodruff.


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Offline  Re: Brewers Payroll 2020 and beyond
Posted: January 15, 2021, 2:18 PM Post
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Location: Baltimore, MD
Cool, so they're $1.35M better off than those high estimates. Maybe they can bring Sogard back!

Image


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