Information from the press release addresses some of your points.
> > For your discussion, mainly because I want some ammunition when my Chicken
> > Little friend approaches me with this story later today, as he most
> > certainly will.
> The books were audited, but that only says that the numbers balance; it
> doesn't say anything about which revenues and expenses were charged
> where. I don't know what related-party transaction they have available.
(see paragraphs below.)
> reveneu may be hidden:
> The team said its financial statements, audited by
> PriceWaterhouseCoopers, showed revenue increased from $59 million to $79
> million, thanks to record-setting attendance of 2.56 million.
> How about revenue from the playoffs themselves? The team that loses the
> World Series gets a large share of the playoff revenue.
the revenue from the playoffs.
> the new stadium, but the Padres' World Series appearance was also a
> contributing factor. That is, the Padres had an incentive to take a
> loss in 1998 in order to produce future gains.
$6.9 million operating loss.
> get. After buying a team, owners can write off many of the acquisition
> costs over a five-year span.
> That is, if the *team* loses $10M but the *owners* pay $!0M less in
> taxes, the team claims a loss but the owners lose nothing.
I have have no doubt that the Padres lost money year (and continue to as
advertising at the Q go to the Chargers, parking goes to the city and
little of the concessions go to the Padres), however I do think they
could be wiser about the players they sign. Moores realizes that money
does not buy wins, but he still thinks that the lack of money means
losses. Hopefully the success of other teams such as the Reds and
Athletics will convince him that smart teams (and lucky teams) win.
------- From the PR statement.
"There are several established methods to calculate and describe
results," said Tom Insley, Managing Partner of PriceWaterhouseCoopers,
firm has audited the Padres' financial records since 1990. "The Padres
what is undeniably the simplest, clearest method, cash in and cash out,
calculate these results.
"There is no 'Hollywood Accounting' involved in these cash losses," said
"They do not reflect depreciation or other 'paper losses.' These are
payments that the Moores family and Larry Lucchino have had to cover to
The club opened its audited financial statements for 1995 and 1996 to
Mayor's Citizens Task Force, which has studied the club's finances since
The task force concluded, based on the '95 and '96 results, that the
break even at Qualcomm Stadium, and a new baseball-oriented ballpark is
essential for the club to generate sufficient revenues to survive in San