For profit
Posted July 12th, 2007 by Ron
I see many of you have commented about the profits and losses for sports organizations.
There should be no doubt that even the worst run of sports franchises make money.
An incident I like to point to is the Indians' surprising run of a couple years ago when they finished a few games short of the White Sox in the Central.
The Tribe was not expected to do much that season, and the fans weren't expected to come to Jacobs Field. And the payroll reflected that.
When the Tribe started to win and led the division through the summer, fans started to show up in droves and the TV ratings spiked.
The Tribe was in the pennant race until the last week of the season. They made no trades to add salary either.
Yet, the Dolans announced in the following offseason that their part of the shared finances in baseball ($3 million) allowed them to break even.
There is no way the team planned to lose more than $3 million that season and with more fans at the game they actually had to make more money than they assumed.
So either the owners in baseball lie about profits or are terrible businessmen.
You decide.



July 12th, 2007 at 7:27 am
Hear! Hear!