Remember: never believe a thing a team says about its finances

34 Comments

Dan Le Batard has a takedown of the Marlins which pretty much squares with my view of things too.  This passage piqued my interest, however:

The Marlins last offseason were like a gluttonous fat man at the all-you-can-eat buffet, stacking the plate with his eyes and appetite without regard to practicality or the oncoming food coma. The team overspent assuming we’d fill the ballpark, which we didn’t, and that meant losing about $40 million in that calamity of a season. Even though management didn’t have to serial-killer slash the payroll, there were going to have to be cuts, so the team decided to take a wrecking ball to the blueprint and just start again.

I’m not sure what the source is for that $40 million loss, but it is worth remembering as we enter free agent season that a baseball team’s claims of profit and/or loss are almost always pure science fiction when compared to the numbers that are reported for most other types of businesses.

Baseball accounting is profoundly opaque, and the only glimpses we ever see into the finances of a baseball team are either wither accidental or are partial-truths released by the team in order to further some specific end such as either proving or disputing that the owners are broke, depending on whichever story suits their purposes at the time.  And even then, we almost never get much above the bottom line number (Team X lost $Y last year). A number which tells us nothing about how much the ownership group extracted from the team above the line.

For example, we’ve learned in the last year that Jeff Loria at one time and may still pay himself an annual salary of some $10 million. And that there is a team “managing general partner” called Double Play Company which takes $8.5 million more. Oh, Double Play Company is owned by Loria and its president is Marlins team president David Samson.  Do other teams have that kind of setup? Don’t know! Because no one ever gets to see the finances of baseball teams! Indeed, teams and the league go to great lengths to avoid ever having to release their finances to the public, be it under pressure from politicians, in the course of litigation or anything else. They DO NOT want you to see the books, folks.

So call me crazy or call me paranoid, but I will never take a team’s statement about its profits or losses unless and until they show me the books to prove it. And that goes for the $40 million-losing Marlins too.

Report: Mariners CEO John Stanton denies allegations made by Dr. Lorena Martin

Dr. Lorena Martin
AP Images
1 Comment

Last month, Mariners former director of high performance, Dr. Lorena Martin, was dismissed from the club after the first year of her three-year contract. She made serious allegations of racism and sexism against the Mariners in the days that followed, all of which have been the subject of multiple investigations by the team itself as well as Major League Baseball. On Friday evening, Ken Rosenthal of The Athletic published an email that had purportedly been sent to Mariners staff members by CEO John Stanton.

The email itself was printed here in full (subscription required) and basically rehashes everything the Mariners said in an official statement on Monday: That the team continues to deny allegations of racist and sexist behavior by general manager Jerry Dipoto, manager Scott Servais, and farm director Andy McKay because they are “completely inconsistent with who they are and what the Seattle Mariners stand for.”

Stanton added that no one had stepped forward to corroborate Martin’s accusations so far, and also went out of his way to mention that he had never personally observed members of the Mariners personnel “making disparaging, racist or sexist comments” during two trips to the Dominican Republic. The email concluded with an invitation for other staff members to speak up if they had any differing experiences or concerns about the team.

According to multiple reports from the Seattle Times and Tacoma News Tribune, among other outlets, Martin has yet to reveal a number of incriminating emails she claimed to have in her possession, nor has any staff member publicly supported her previous statements on her wrongful termination or the toxic culture within the club. That doesn’t mean, however, that the allegations she made against the Mariners are false, just as Stanton’s claim that he never personally witnessed instances of racism and sexism within the organization doesn’t mean that racist and sexist statements and actions were never made. As Bill pointed out, Martin has likely burned all bridges within the organization and, more significantly, throughout the league as well. It stands to reason that others would feel hesitant to come forward in light of the harsh ramifications that typically await whistleblowers in this kind of situation.

We’ll update this story as it continues to develop.