04/20/24
January 28, 2005
Pittsburgh's Kevin McClatchy fears some Baseball clubs could face bankruptcy : McClatchy, the Pirates' managing general partner, warned of a growing division between big-payroll and small-market clubs that could lead to contentious owners meetings and a much harder stance during the next labor negotiations. The current labor deal with players runs until December 2006.
I'll believe that pro sports franchises are in financial trouble the day that an owner sells one at a loss. The idea that any of these teams is flirting with insolvency is an accounting fiction. Even McClatchy's sad-sack Pirates went up $31 million in value from 2003 to 2004, according to Forbes.
posted by rcade at 12:12 AM on January 29, 2005
LROD, don't believe the hype. These kind of gaps have always existed between teams. Remember these teams are tax breaks for very successful business people. None of them got successful by overpaying their employees.
posted by yerfatma at 09:02 AM on January 29, 2005
Nope, nope, nope. Not buying it. From The Hardball Times: Cry me a river, build a bridge, and get over it
posted by mbd1 at 10:08 AM on January 29, 2005
I'm with you rcade - this is a popular myth that these organizations are losing money, crying foul in terms of taxes and support from communities and that there is some local cultural investment in the product. Frankly, it's ridiculous. Who are the real superstars of Big league sports? The accountants.
posted by WeedyMcSmokey at 10:13 AM on January 29, 2005
Weedy, don't forget the lawyers and the politicians who collaborate with the accountants to put the necessary legal structures in place. LROD, just ask yourself why McClatchy would speak out in public like this, how can his remarks benefit the game? The most likely result is to poison the atmosphere ahead of contract negotiations, which is fine if the owners plan on taking an NHL-like hard line to replace the luxury tax with a salary cap but adds little value otherwise.
posted by billsaysthis at 03:35 PM on January 29, 2005
Kevin McClatchy is the worst thing to happen to the Pirates since the green weenie.
posted by dirigibleman at 08:17 PM on January 29, 2005
Finally somebody is talking; it doesn’t take to much intellect to realize that sooner or later these crazy paydays are going to create problems one way or the other in the long run.