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Data I have seen on this site and others suggest the Cardinals revenue ranks higher than their payroll. As such, they should be able to spend more.
Revenue better be much higher, or they’ll be out of biz soon. Most businesses operate on a percentage of approx 20% payroll to revenue, depending on business type. Huge deviations from that raise red flags to investors and indicate a payroll problem. Pro sports are different, however, closer to 50% for MLB/NBA/NFL. That’s partly because the players themselves are the “things” that generate revenue, so they have the power to demand more. That’s also a reason why it costs so damn much to attend a game and eat a cold hotdog — people are willing to pay it.
Revenue is higher than payroll, so they can spend more? Are you serious? Do you realize all the other costs involved in running a major league organization? How about all the other people on payroll that aren’t players? Google Cardinals staff. You’ll be amazed. How about the payrolls of all the minor league teams? How about utilities for that big stadium for the whole season? How about all the insurances they need? Etc. Etc. Etc.
Bccran, if you are referencing my post, I cited revenue ranking versus payroll ranking as my justification. I recognize that the business has expenses other than player payroll … and that they are not insignificant.
Revenue and payroll rankings are right in line.
According to you. Is this a guess or do you have inside info on their finanacials?
Oliver – Google MLB team revenues and MLB team payrolls and you’ll see that the rankings are right in line.
Here’s what it says, Oliver –
Revenue – The Cardinals rank 14th
Team Payroll – The Cardinals rank 13thI’m somewhat surprised, Cranny. It’s become almost received wisdom at this point that the Cards are roughly 10th in revenue. Been that way for, I dunno, 15, 20 years or longer.
Could it be that Ballpark Village wasn’t included in the estimate you cite? (And could you cite the site that you cited? Thanks!)
Ballpark Village? You must mean the area in which Billy Jr. and his “ownership group” received almost $70MM in tax breaks to develop and build? People don’t seem to understand that these guys are so cash strapped that they need the benefits provided by public assistance progarams as a means of simple survival…
Does anyone know if Billy Jr. is still a minority owner of both the Texas, Rangers and the Baltimore, Orioles?
Okay, Cranny. Thanks.
The thing is, you go to five websites and you’ll get five different sets of numbers. I was just curious which website you were referencing, so I could check into their methodology — however much of that is publicly available.Thanks again for responding in any case, and have a good New Year.
Some will scoff at me putting #STLCards chairman Bill DeWitt Jr. on this year's under-pressure list. Here's why. Fair? Column at @stltoday: https://t.co/rXDGrPizdu pic.twitter.com/rLUw5hqvU5
— Ben Frederickson (@Ben_Fred) January 6, 2023
Junior is under zero pressure. I’m sure he laughed at that article and he should. Cardinal fans are sheep…they’ll come in at 3.3 every year whether the Cardinals win a playoff game or even make the playoffs. Junior has the best franchise in baseball. He’s making millions in profit every year and he doesn’t have to win anything. Junior would laugh at the notion of pressure on him.
I fear Nathan is right! I’m personally tired of the total playoff failures and can’t see it getting any better with our current pitching staff! I am hopeful that a couple of more one and some playoff series will light a fire but I’m not sure if even that will do it!
If you take a quick look at Cardinal attendance numbers in proportion to W/L records through the decades going back to 70’s, it’s reasonably easy to see that StL. fans are no different that anywhere else in the sense that winning and losing have a direct impact on attendance figures. It’s my guess that once the Cardinals are no longer competitive for three or four consecutive seasons that attendance will certainly decrease to somwhere in the vicinity of 2MM give or take a box seat section or two. If it indeed does and Billy Jr. and his entourage fail to take significant action to improve the quality of the Redbird ballclub, it will be a clear indication that he’s ready to cash in on his investment and sell the team. That’s normally the natural order in the world of private equity investment management firms, or holding companies. They work to increase the value of a business and then later sell at a profit. He’s probably looking forward to a big pay-off for himself and his imperial heirs…
I previously mentioned on the Hot Stove thread that Mo’s contract expires after 2023 so he’s in his contract year. Girsch was previously extended through 2024. Last time Mo got an extension it happened in early November before his contract year. All we know is that timeline does not seem to have happened this time. Since I am not into wild and crazy conspiracy theories I will just leave it at that.
Bill DeWitt Jr is 81 years old. If he wants to see another world series championship perhaps he will authorize Mo to be more aggressive but I imagine it is difficult to suddenly change how you operate after doing it the same way for a long period of time.
Mo was on KMOX this morning with Tom Ackerman. Here is the link so you can listen yourself.
Here is part of what he said. He was first asked about payroll.
“We did have an opportunity to increase payroll, which it will be higher than what we played at last year. So that’s fact no. 1. And no. 2, just because you have resources, you aren’t going to just go spend it wildly on something that doesn’t make sense.
“We knew what we had to accomplish this off-season. We went into it with the hopes of doing it. As other things presented itself or unfolded, it just didn’t get to the point where we were excited enough to necessarily to do it. That might depress people or disappoint people.
“My responsibility is to adhere to the franchise and adhere to ownership and do what we think is best to put together a winning club.
“I think we are at a unique situation compared to other teams where we have some emerging talent, up and coming talent. We just don’t do want to go down a path where we don’t create that opportunity and regret not having that opportunity for individuals, as we enter 2023.”
(Ackerman: “So that sounds like if you are expecting fireworks or a big splash, don’t get your hopes up. That is what it sounds like.”)
“Right. You never rule anything out, right? Something could present itself that makes a whole lot of sense that we haven’t talked about or explored to this point. But in terms of looking at our club, there are names that get bantered about that we are just not going to trade. And in doing so, it does I guess create some level of paralysis in something.
“And then you say, ‘Well, what are you trading for?’ Right now the bet we are making is on Waino, Mikolas, Montgomery, Flaherty and Matz. And you’ve got Dakota in the wings…”
Right now the bet we are making is on Waino, Mikolas, Montgomery, Flaherty and Matz. And you’ve got Dakota in the wings…”
So Mo is betting that a bunch of guys with histories of injury problems won’t have injury problems. Same bet as the last couple years. Maybe the result will be different.
The STL opening day payroll ranked 10th highest for 2021. The budget was trimmed back for opening day 2022, ranking 13th.
Now that STL has “raised payroll”, from 2022, we currently rank 15th for 2023 (Cots).
While it’s true the payroll budget has raised this winter, as Mo said, the STL payroll is losing ground to mlb.
10th, to 13th, to 15th is a 3yr trend that no amount of excuses can talk away.
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