Pittsburgh has had some un-surprising bad news come out this past weekend. Over the weekend, the Associated Press released a report showing exactly how much money the Pirates made over the past three years, and just how profitable they actually were.
The Associated Press reported that the Pirates made nearly $29.4 million in 2007 and 2008, according to team financial documents. Honestly…I think that nobody really should be shocked by this. First and foremost they’ve made it a business, it’s not about the fans, and it’s most certainly not about winning.
It’s never been about winning, and sports economists are actually describing the Pirates in a way that shows that they are smart and savvy
All time favorite Bob Nutting Quote - "I believe there is absolutely nothing more important than for our team to be able to win, not just for one year, but on a consistent basis. I am committed to providing Kevin and General Manager Dave Littlefield the greatest amount of support possible to accomplish that. Our fans deserve it, our community deserves it and I expect it."
with business related money handling, and they are profitable by actually losing. Here’s a little excerpt from what the economists are actually saying regarding the Pirates plans:
“The numbers indicate why people are suspecting they’re taking money from baseball and keeping it — they don’t spend it on the players,” said David Berri, president of the North American Association of Sports Economists and the author of two books detailing the relationship between finances and winning. “Teams have a choice. They can seek to maximize winning, what the Yankees do, or you can be the Pirates and make as much money as you can in your market. The Pirates aren’t trying to win.”
“If they won and were forced to increase their payroll from $34 million to $75 million or $80 million … how profitable would they be?” Berri said. “There’s a ceiling in terms of gate revenues.”
Economist Roger Noll, a Stanford University economist, said: “Probably the Pirates would be less profitable if they tried to improve the team substantially.”
So that’s what the various experts had to say on the dealings with what is actually going on with what the Pirates are attempting to do. Now let’s move to management and see how damage control is working for them:
Coonelly said in an interview with the AP last week that Pittsburgh, one of baseball’s smaller markets, still will need help after it climbs in the standings.
“Even when we’re winning, we will be a revenue-sharing recipient … and in much better position to generate revenue and, depending on how we control other expenses, to generate additional income,” he said. “But you can win without an $80 million payroll. We’re seeing it this year.”
Of course the smaller system works, but that works with a team that’s been dedicated to drafting and keeping their stars for a longer amount of time…in other words, doing it the right way. They use and cite the success of the San Diego Padres who have the lowest payroll in the league, however, the Padres have done it the right way, were never far off from success and have excellent coaches. The Pirates, are sorely lacking in most departments but are actually trying to improve.
So after the report was “stolen” or “sold” to the AP, the Pirates are giving them the smack down and not letting them go to announcements regarding the team:
“Someone with access to the Club’s financial statements has breached his/her fiduciary obligation to the Club by providing a copy of the Club’s audited financial statements for the 2007 and 2008 seasons to the Associated Press,” the statement read. “The Club is a private company that has no obligation to publicly report its financial results and, like most private companies, has consistently declined to do so.”
The statement also said “the revenues generated by the club are being reinvested back into the club in both long-term and short-term investments needed to completely overhaul and rebuild this baseball team.”
“The Club has paid no dividends to its partners. Moreover, while it is quite common for a Chairman of the Board of Directors of a partnership to draw a salary, (owner since 2007) Bob Nutting has never received any salary.”
While we understand it’s a “private” business, it’s nice to know where the money actually goes. It’s nice to know that the money fans consistently give money too, is going to the right places. For years people have speculated that the money has gone elsewhere, especially to Nutting’s failing newspaper business. However, Coonelly again explains that the Pirates have not shipped their money elsewhere:
“I can tell you for certain there has not been a dime that has left the Pirates organization to fund any other business of any of the partners of the Pirates,” Coonelly said.
Coonelly, previously an attorney for MLB, defended the Pirates’ right to make a profit, but said he would not stay with the team if he suspected any Pirates funds were being channeled to ownership.
“I would not have left the commissioner’s office if I wasn’t convinced that Bob Nutting was committed to putting a winning product on the field,” he said. “I would not have left the commissioner’s office and I wouldn’t remain at the Pirates if the Pirates were simply generating resources to fund other businesses.”
Frank Coonelly stands for honesty and loyalty
Well of course you’re going to say that. First off, you’re with the organization, and you can’t really dump on them, and second, you make butt wads of money spewing constant lie after lie. Easy money.
It’s just gotten to the point that fans don’t want to hear that you’re doing it the “right” and “honest” way. For too long the fans who have paid obscene amounts of money to the team, and nothing has been provided. It’s honestly amazing that I’m a die hard fan, and I just don’t think I care about what management or ownership has to say anymore. It’s always damage control, or promoting themselves to the point of puking. I don’t know, it’s just year after year, I find myself growing complacent with what’s being put on the field.
Mon, Aug 23, 2010
Sports