Diamondbacks Bullpen

[foulpole]

While there have been random posts covering revenue I don't recall a thread that specifically addressed this issue so I started this one.

While I do strongly support our FO spending wisely I am not going to give them a pass on reinvesting to win today, tomorrow and in the future.

Here's the latest on the new nationwide TV contract.

"The total package on all the baseball is estimated at around $5 billion. (Or about $28 million per year, per team for the next six years.)"

Post your thoughts.


link l

[tmar]

I'm OK with the current spending. We're still paying for the WS and it's money well spent. From what I recall our pursestrings will be opening a bit after 3 years <2010> which will be just in time to keep together our current talent, once it develops.

[shoewizard]

Two questions:

1.) Are we sure thats how the money is distributed?

2.) How much were the teams getting for the National contracts prior to this contract? IOW, how much of an increase is this.


The D backs had 145 Million in revenue in 2005, (2006 numbers won't be out till next spring) Their operating income off that, i.e. "Earnings before interest, taxes, depreciation and amortization." was 21.8 million.

In 2004, the operating income off 136 million in revenues was a loss of 18.7 million.

In 2005, the reduced Debt from 296 million to 240 million. I would guess that we will see debt reduced to under 200 million by the end of 2006.

[Hank]

[shoewizard]

Here is the ranking as of 2005 seasons end.

I think MLB was trying to enforce a maximum of like 40% Debt to Value Ratio, or something like that, but don't quote me on it. Obviously they have not been too successful if that was indeed the number.

In 2004 Dbacks had a 103% Debt to value ratio, and that was lowered to 79% by the end of 2005. My guess is it will be in the low-mid 60's by end of 2006.

From everything I have read and been able to piece together, when they get it down to about 100 million, most of that will be stadium debt which they probably have more time to pay off, as opposed to the deferred salary contracts that are being paid off on a quicker schedule. (they started out with about 200 million in deferred salary as of 2004)


Scroll to bottom of Page 10 of this article for some more history of how things came about here.

[Tucson DBacks Fan]

I realize that Arizona has some back salaries to pay from the Colangelo days and is not a big market team anyway. However, in a perfect world, the team I was rooting for to win another World Series would not only be planning to outwit other teams with their brainy general manager and baseball intellect but would at least every now and then spend a bit for a great player and this year adjust upward the amount of money they were willing to pay for player salaries since many of their competition seem to be doing it. Then again, it's not my money being spent. As much as I don't care for George Steinbrenner, however, sometimes I think I'd be happier if he owned the team than the folks who own it now and are looking really hard at the bottom line with a microscope. True, some of the other teams are throwing thier money away, but others are spending big bucks wisely. If a few key players could push the team up a lot with all the young talent the team has, I would like to see the team fork out some good money and plug in the necessary parts. Maybe the Diamondbacks will surprise me and open their pocketbooks a bit this offseason, but I'm not betting on it. If they aren't willing to spend much at all, I'm certainly not expected anything earthshaking out of the team next season.

[shoewizard]

I think what you are really saying is you wish your favorite team was really a big market team.

The Yankees frachise value is over a billion dollars....the Diamondbacks barely over 300 million. Jerry's ego didn't allow him to accept that reality.

There is a time and a place for everything...and I guess the question is whether or not NOW is the right time to roll the dice. Is this team just one big name, big dollar free agent away from winning it all? Anyone doing any kind of OBJECTIVE analysis would conclude they are not, and therefore, spending big bucks now is probably a waste of money.

As far as the folks that own and run the team looking really hard at the bottom line.....

Think about what I am going to say here:

Those are the very same folk that financed the first world series. Those are the very same folk that then came up with another 160 million ADDITIONAL investment to keep the team alive and financially solvent when Jerry's gamble did not pay off.

Is it fair to say they are only concerned with the bottom line? I don't think so. I think the owners of this franchise have shown over and over they are dedicated to building a strong franchise. But the fact is jerry dug a DEEP DEEP hole to get that Trophy, and it takes time to dig out from that. More time than most people have the patience for.....but and understanding of just how deep that hole is/was helps one muster the patience during the "dig out" process.

[stu]

Let's not forget that it was not Jerry's money that he was gambling with. Jerry managed to put together the team without using his own money. The financial risk was assumed by the investors not Jerry.

[Hank]

[David B]

Hank, check out the debt load the Dodgers are carrying. That's the thing that jumped out at me. I'm sure that it must have an impact on the overall team value.

[Hank]

[tmar]

To further support Shoe's statements, if the team had come out and said "hey we'll give you a WS but it'll cost 5 yrs of rebuild" most of us would have said "OK" <and the ones that wouldn't should consult the Cubs fans for further advice.

As far as stretching the budget to get that one high-impact player, I don't see one in the FA market that I'd be willing to do that for. We could try to trade for one but that would leave more holes in the team and soon we be falling down a slippery slope.

Right now we are on track to fill in a good deal of the teams holes. We currently have every fielding position accounted for in the 2008 season <if CGon is ready by then> and would only need to add a SP or two.

If we get a good deal on a Wolf-type and he produces, in 08 we only need 1 ace to make this team complete and we have more salary space to do it with.

[Tucson DBacks Fan]

Colangelo spent a lot of bucks and won the World Series. Some of the money he spent was worth it, and on a lot of players he just threw money down the drain. He could have won the World Series without spending all the money he did if he would have spent the money more wisely.

[David B]

[TAP]

[Tucson DBacks Fan]

Great response, guys. And nice code red, Colonel Jessup.

[foulpole]

"•Still up for grabs.

• MLB's Brosnan won't disclose financial terms. But he says the TBS and Fox deals — along with a new regular-season MLB deal that ESPN made last September — will send MLB's national TV revenue up 19%. Meaning, after ESPN's rights fees went up 50% to $296 million annually in its deal, the new Fox deal will generate something under $300 million a year while TBS should generate more than $70 million."

I guess it depends on the source but these figures seem to fluctuate from one article to the next.

http://www.usatoday.com/sports/columnist/hiestand-tv/2006-07-11-hiestand-mlb_x.htm

[casey1992]