It’s hard not to turn a profit running a baseball team

26 Comments

Geoff Baker reports that the Mariners, despite many losses and low attendance, turned a profit last year: $5.86 million to be exact. And that they’ve been profitable just about every year since they moved into Safeco Field, save one year when profits were offset by a large investment in stadium improvements. All of this despite the fact — at times anyway — the Mariners have had pretty significant payrolls.

Two takeaways here: (1) it’s pretty hard not to turn a profit running a baseball team, it seems; and (2) it’s pretty nice when these numbers are reported.

With most teams we have no idea about how much money they’re making, but the Mariners are required to do some financial reporting as part of their stadium deal. With almost all other teams we are forced to take the representations of the owners at face value. And as history has shown us, baseball owners can and often do claim dramatic losses when it suits their purposes, even when those losses are pure fiction and/or the product of funny bookkeeping.

 

 

Zack Greinke understands that “the opener” isn’t just about in-game strategy

Denis Poroy/Getty Images
Leave a comment

Over the weekend, Craig was among those cited as having criticized the Rays by Marc Topkin of the Tampa Bay Times. Craig wrote about it in Sunday’s And That Happened. Many of the responses from Rays fans to him on Twitter, at least most of what I saw, conflated distaste for ownership’s penny-pinching for a belief that the team is bad. Indeed, the Rays enter Tuesday’s action 64-61 and their position above .500 has something to do with “the opener” strategy, which is when they have a reliever like Sergio Romo start the game before handing the ball off to an actual starter after an inning or two. Other teams, like the Twins, have taken notice of “the opener” and have begun experimenting with it.

On Monday, Bleacher Report’s Scott Miller published a lengthy column discussing how recent changes to the game of baseball have made it a worse product. He quotes a lot of old-timers, which I discussed yesterday. Miller also quoted Diamondbacks starter Zack Greinke on the subject of “the opener.” While quotes from the likes of Goose Gossage and Pete Rose were a bit more eye-popping, Greinke’s thoughts shouldn’t go unnoticed.

Greinke said:

It’s really smart, but it’s also really bad for baseball. It’s just a sideshow. There’s always ways to get a little advantage, but the main problem I have with it is you do it that way, then you’ll end up never paying any player what he’s worth because you’re not going to have guys starting, you’re not going to have guys throwing innings.

You just keep shuffling guys in and out constantly so nobody will ever get paid. Someone’s going to make the money, either the owners or the players. You keep doing it that way, the players won’t make any money.

Back in May, I wrote about how the overarching concept of “bullpenning” creates a serious labor issue in baseball. Greinke touched on exactly those points. An elite starter makes significantly more money than an elite reliever. Compare contracts signed by David Price (seven years, $217 million) and Max Scherzer (seven years, $210 million) to the contract signed by Aroldis Chapman (five years, $86 million), which is currently the most lucrative contract signed by a reliever. It wouldn’t crack the top-85 contracts in baseball.

A starter’s number of starts and his innings pitched total are both cited in arbitration filings and contract negotiations. A pitcher who made 33 starts in a season will have more leverage than a pitcher who made only 15 starts. Meanwhile, Romo and Ryne Stanek‘s innings totals aren’t much different than a normal year of relief. Thus, if you’re Rays president of baseball operations Matt Silverman and GM Erik Neander, spreading the number of starts (and innings) between the “rotation” and bullpen will reduce the cost of pre-arbitration and arbitration-eligible starters. The owners save this money and pocket it instead of reinvesting it into the team. Then they’ll turn around, cry poor, and ask residents of Tampa to foot the billion-dollar bill for a new stadium in Ybor City, roughly 25 minutes from their current digs.

Greinke is right and we should pay attention to what he’s saying. While “the opener” has some strategic merit, particularly for teams with less-than-complete starting rotations, it also conveniently helps save money for stingy and exploitative front offices. We’ve already accepted that a third of the league gave up on the season before it began. Let’s not accept that teams can give up on their pitching staffs as well.