MONEY AND BASEBALL

MONEY AND BASEBALL

Post by Kevin Reicha » Sat, 23 Mar 1991 00:25:06

Quote:



>>>You don't understand that some clubs' owners don't have the resources to
>>>compete for the bucks-up ballplayers the way that Gene Autry, George
>>>Steinbrenner and Bob Lurie did/do?

>>For every example you can come up with, I can find the Ewing Kaufmans (KC),
>>Carl Polhads (Minn), and Ted Turners (Atl) who are not in "big" markets
>>who spend the big bucks for ball players.

>That's fine; I wasn't trying to associate big cities exclusively with
>big spending.  I was just pointing out that all owners, as is the case
>with everything else in life, aren't created equal.  And some of the
>big spenders have been making life in MLB pretty tough on the littler
>guys.  I have no hard evidence, but I've heard that Houston and Pittsburgh
>are both somewhat on the bubble.

Well, let's take the case of Carl Pohlad and the Minnesota Twins. Let's look
at his finances.

The way the Twins are structured, there are the Minnesota Twins Baseball Club,
and then there a bunch of side corporations that essentially service the
Twins. For instance, revenues from the luxury seats in the Metrodome don't go
to the Twins Baseball Club; they go to another corporation. Revenues from all
souveneirs don't go to the Twins Baseball Club; they go to the Twins Pro Shop,
another corporation. When the Metrodome was built, Pohlad happened (!) to own
some rundown warehouses in the area--which he remodeled and subsequently
rented out at Class A rates. Revenues from those don't go the Minnesota Twins
Baseball Club. And I could probably name four or five other side corporations
where the Twins channel their money derived from baseball.

In addition, Pohlad is allowed to depreciate players per the tax laws--so in
essence the GOVERNMENT is paying for part of the salaries of players. Think
about that for a moment!

Sorry. I don't buy the arguments that all these owners are in such sad shape.
Carl Pohlad is at heart a banker, and bankers don't stay with businesses that
lose money. The players deserve every penny they get.

--K.

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