1.25 million fans + parking = 55 million in payroll?

[BuccoFla]

Been pretty disappointed in this off season so far. Now comes news that the Brewers are going to be over the $100 million dollar mark in payroll for 2012. The only difference between the Bucs and Brewers is a million more fans through the turnstiles and more parking revenue. That we haven't even given McCutchen the Upton extension dollars is a joke. My patience wears thin. 



http://www.mlbtraderumors.com/2012/01/melvin-brewers-way-over-projected-budget.html

[markson33]

Based upon the difference in attendance and the difference in the average ticket price (about $7), the difference in gate receipts is about $37 million.  Add in parking and additional concessions and it seems about correct that the Pirates would be about $45 million less in revenue.  How revenue sharing works into that I have no idea.

[RJReynolds]

Per the Brewees owner he expects to receive $20 mil in revenue sharing for 2011 when all is said and done. The Pirates have been receiving around $35 million in 2008 per the leaked financials. So subtract at least $15 million from the difference.

RJR

[scrapiron]

Per the Brewees owner he expects to receive $20 mil in revenue sharing for 2011 when all is said and done. The Pirates have been receiving around $35 million in 2008 per the leaked financials. So subtract at least $15 million from the difference.

RJR

That's only correct if they are receiving the same amount in revenue sharing since 2008/9 which is probably an incorrect assumption. 

[RJReynolds]

Per the Brewees owner he expects to receive $20 mil in revenue sharing for 2011 when all is said and done. The Pirates have been receiving around $35 million in 2008 per the leaked financials. So subtract at least $15 million from the difference.

RJR

That's only correct if they are receiving the same amount in revenue sharing since 2008/9 which is probably an incorrect assumption. 

You are right. If Milwaukee is getting $20 mil the Pirates are likely to be getting twice that. Good point.

[gamecckfn]

Per the Brewees owner he expects to receive $20 mil in revenue sharing for 2011 when all is said and done. The Pirates have been receiving around $35 million in 2008 per the leaked financials. So subtract at least $15 million from the difference.

RJR

So 25 to 30 million more in revenue a year.  Unlike the Pirates, the Brewers were making money with their new stadium, have less debt, and were making 2 or three times the profit in recent years.  Pretty easy to see how they can spend over budget, money is still there.

I would imagine their budget forcast shows a profit, so clearly they have much more money available than the Pirates.

[Dogknot3]

Winning puts people in the seats.

The Brewers and Pirates started a rebuilding around the same time. The Brewers went after bats and the Pirates under Littlefield went after pitching.  Well, the bats won as the Brewers put a winning teram on the field much sooner. 

Littlefield took the wrong approach.  In doing that, he set back the Pirates even more.

[markson33]

Looks like their parking revenue is closer to $10 million, so that puts them at $47 million.  Add in concessions and greater advertising revenues and they are probably bringing in at least $50 million more than the Pirates.

[dave3BA]

Winning puts people in the seats.

The Brewers and Pirates started a rebuilding around the same time. The Brewers went after bats and the Pirates under Littlefield went after pitching.  Well, the bats won as the Brewers put a winning teram on the field much sooner. 

Littlefield took the wrong approach.  In doing that, he set back the Pirates even more.

So now that the Pirates are taking an approach with pitching, are they also doing the wrong thing or is this different in your eyes?

[ECBucs]

Looks like their parking revenue is closer to $10 million, so that puts them at $47 million.  Add in concessions and greater advertising revenues and they are probably bringing in at least $50 million more than the Pirates.

I think this could be about right. 

However, the Bucco approach is still to be a year behind, fans attend and then payroll can go up.

Why not make bigger moves with expectations that team will improve and attendance and revenue will go up?  That happened last year when team got off to good start.

This still would not be a big move, but I would much rather have acquired Scutaro rather than Barmes.  Maybe Clint can help Barmes hit well again, but if that doesn't happen he will be a waste of $5 million.

If Barmes had played for the Pirates for the past couple years the Bucs never would have resigned him for 2 years and $10 million.  He would have gone the way of Doumit and Cedeno as the Bucs would have said the value wasn't there.

[RJReynolds]

Looks like their parking revenue is closer to $10 million, so that puts them at $47 million.  Add in concessions and greater advertising revenues and they are probably bringing in at least $50 million more than the Pirates.

The average ticket price for the Brewers is $5 above the Pirates. At 1.1 million extra in attendance in 2011, that is $5.5 million. Every butt in a seat is generally considered to be $25 for ownership including consessions (a $4 soda does not mean $4 in ownership's pocket). At 1.1 million extra in attendance in 2011, that is $27.5 million. If I give you $10 million for parking, that is $43 million extra for the Brewers. Going by the 2008 revenue sharing number for the Pirates of $35 million, and the acknowledged 2011 number for the Brewers of $20 million, that reduces the difference from $43 million to $28 million. So, the Brewers have $28 million more to spend than does Pittsburgh. Yet they are spending $50-$55 million more.

As the Yahoo article said, there are two kinds of owners. Those who spend money in anticipation of an increase in revenue, and those who don't spend money initially and look to management to create a contender that leads to increased revenue. And the Pirates owner is categorically in camp #2.

RJR

[markson33]

Last year the average difference in ticket price was $6.80, that difference will increase with the price increases this year.

https://www.teammarketing.com/public/files/2011_mlb_fci.pdf

[Dogknot3]

Winning puts people in the seats.

The Brewers and Pirates started a rebuilding around the same time. The Brewers went after bats and the Pirates under Littlefield went after pitching.  Well, the bats won as the Brewers put a winning teram on the field much sooner. 

Littlefield took the wrong approach.  In doing that, he set back the Pirates even more.

So now that the Pirates are taking an approach with pitching, are they also doing the wrong thing or is this different in your eyes?

No, Huntington is taking the best available.  It just happened to be pitchers ther last few drafts.  Littlefield went out of his way to draft pitchers.

[gamecckfn]

As the Yahoo article said, there are two kinds of owners. Those who spend money in anticipation of an increase in revenue, and those who don't spend money initially and look to management to create a contender that leads to increased revenue. And the Pirates owner is categorically in camp #2.

RJR

And so is the Brewers owner.

[jcharding]

Some of the difference in payrolls and income may lie with local TV and radio revenues.  I've always been under the impression that those income streams have a much bigger influence on team payroll.