mobaz
Veteran
Posts: 2,771
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Post by mobaz on Sept 18, 2020 15:07:58 GMT -5
Note the layoffs weren't just in baseball ops. I see people acting like it was just baseball ops, but it was business too. Still sucks, but it's not like they just gutted things on the baseball side because F scouts we can use computers. It was a general decrease in workforce.
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Post by Chris Hatfield on Sept 18, 2020 16:42:48 GMT -5
Brutal. That said, if anyone can find a gig if he wants it, it's probably Gordon.
Hell, we'll hire him and triple the salary we pay our writers.
Funny story, I sat next to Gordon during a Celtics playoff game in 2009. Good dude. I was too young to mention that I wrote for the site. Older me would slap younger me around for swinging and missing on that networking opportunity.
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Post by foreverred9 on Sept 18, 2020 18:46:46 GMT -5
For reference, here's the Braves financials from the second quarter: Edit: can't figure out how to get the image working, so here's the direct link: imgur.com/a/64EUleoOr here: ir.libertymedia.com/static-files/46f17daa-8ef0-4444-931d-54eefbf49f89 (page 65) I don't think we ever dissected them on the board so I figured it's worth sharing to give some perspective. The revenue drop is astounding. What will be telling is what happens in the third quarter, will the revenue from TV offset the salaries that they will now have to pay? Or will their loss be even more than the -26M OIBDA? These owners might be billionaires but still, I'm not sure any of them want to inject capital into their organizations to cover their depleting cash reserves. Even then, I'm not sure how easy it is for all of them to come up with 100M of cash.
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Post by foreverred9 on Nov 8, 2020 16:48:24 GMT -5
Braves Q3 results came out this past week: ir.libertymedia.com/static-files/f14f3f79-1a6a-48a9-87c1-91f47effc3c3 (page 66) It's a little more bleak, they are likely staring at a 125M loss for the full year. The did end up breaking even before depreciation/amortization, which at least is a positive and deters the narrative that "teams lost money just by playing games this summer". That's just not true based on what I'm seeing, TV revenue covered salaries. They ended up bringing in 102M of revenue this quarter, up from 5M in Q2 but roughly 50% down from last year Q3. So I'd use the estimate that 50% of their revenue comes from fans, 50% comes from the media deals. So the (multi) million dollar question is going to be when will fans be able to come back, and when they are allowed, will they even want to go to a game? If no fans next year, I'd still expect a ~100M loss (they'd get an additional 100M of revenue for Q2, but then have to pay most of that to salaries). They'd need a very strong return in fans just to break even (hence the upcoming free agency bloodbath). This is likely the same story across most teams.
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Post by Oregon Norm on Nov 9, 2020 0:21:48 GMT -5
Really useful insight into the economic situation what with the restrictions brought on by the virus. With the number of infected and deaths climbing again, the uncertainty around the return of fans has to put a serious crimp in the market. Betts was really smart to forgo free agency and sign the contract with the Dodgers. It has to be very bad news for any player just getting into that market this year.
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