Some MLB GMs don’t realize that spending money is good for business
In a recent anonymous survey, The Athletic detailed how some MLB executives feel about the recent deal deadline. Most of the answers are normal, everyday answers to basic questions.
“How big a market will Shohei Ohtani bring in the next season or trading term?”
Random CEO: “Really big.”
OH! Thank you for your insight into the main office of MLB. I absolutely could not have imagined that the most exciting player in baseball regularly accomplishing feats not achieved since Freddy McSchtickens before World War I would attract a large market. Thanks for the clear explanation. However, when asked about the Juan Soto deal, the executives gave answers that really left me scratching my head.
Athletic asked executives, “Does this make sense in terms of finance or baseball?” While I can’t speak to the finance side because I don’t know everything involved in running a baseball team financially, I can assure you that it makes sense from a football standpoint. pestle. If you think adding one of the greatest young rackets in the game today doesn’t help in a baseball sense, I’d like to mention your local dealer, because you clearly is smoking some of the worst north of the Equator. Financially, it’s a bit sketchy, but as any business guru will tell you, you have to spend money to make money, and with the product that Padres is putting out on the pitch nightly, it’s hard to imagine a future where the San Diegans don’t care about their team wiping out their competition overnight.
Even so, the random executors could not understand why Padres would perform such an action.
“I can’t understand San Diego’s business model,” said one executive.
“I don’t know how they pay,” said another.
Okay to see. Soto is not a big deal for his level of talent. That’s where a lot of his appeal originates. He is in control of the team with a very team-friendly contract for the next two and a half years. He will attract enormous interest regardless of his contract, but that is just another factor that influences the extent to which every team wants to land him. He just did 17 million dollars This year, and will have arbitration in both 2023 and 2024. There’s a chance the referee could push him into the $40 million range right away, but I see a high probability Soto won’t explode into the stratosphere. save wages until his current contract expires after 2024, or unless Padres renews him before that time.
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Josh Hader isn’t on a massive contract either. Sure, $11 million might be a lot for a closer, but the Padres are only paying half of that, plus Hader will undergo arbitration next year, and given that he currently boasts a 4.11 ERA — the highest of his career — the Padres could probably negotiate a lower salary in 2023. Even if Hader pops off for the Padres, and he demands a higher salary, he’ll only have one year left on his contract in 2023. They can afford to keep an expensive closer for one season.
Even if Soto and Hader were more expensive than they are, we have to keep in mind that this is baseball. Owners can pay whatever they want. There’s no salary cap. Sure, there’s a luxury tax, but I’m sure the Dodgers, Yankees, Mets, and others will keep their incredibly talented roster and pay the comparatively minuscule fee without hesitation. Oh no! They have to pay less than a million in luxury tax fees after spending $250 million on their roster! How will they survive?!
The fact is that any team can afford to buy players like Soto, Fernando Tatís Jr., Hader, and Manny Machado; the owners just have to be willing to open up their pockets. Sadly, most owners are unwilling to do that, thinking they can win with some good luck and a lot of heart. (Editor’s Note: Or they’re just cheap). This isn’t a Disney Channel original movie though. Passion and friendship don’t win championships, Juan Soto-level players — though there aren’t many of them — do.
Combined, Machado, Tatís, Hader, and Soto cost a little over $82 million this year. That might be a lot for someone like Reds’ owner Robert Castellini ( Net worth $400 million), but for the likes of the owners of the Tigers, Ilitch Holdings (net worth $3.8 billion) or the owners of the Twins, the Pohlad family ($3.8 billion net worth) $82 million just like you or I are finding a change on our couch cushions.
Never mind the fact that putting those players on your team will increase revenue, but it’s really not much for a team if they’re willing to shell out. Sure, they may not bring in the revenue the owners expect and that could lead to further financial loss, but you never know unless you try and guess what, market groups small does not earn as much money as it is now. Might as well look up some big names and championship aspirations and see if that works for your city. After all, the Padres are packing the house every night with their deadline additions, and Tatís hasn’t even come back yet.
Thankfully, one executive interviewed gave props to the Padres and owner AJ Preller for his willingness to shoot big-name players.
“I give their ownership team a lot of credit. They made a financial commitment to build an amazing major league product. So they’re obviously thinking that if you invest in building a strong brand, the money will pay off in the long run. … And I also think that if I owned a team, I would think it’s fun to win, so what’s the most exciting thing we can do for me and our fans? Do it. “
This executor is absolutely right. Mark Cuban recently did a Interview with GQ, and in part of that interview, he talks about how the Dallas Mavericks’ lost money for years before they started making money for him, but by investing in the team and marketing the team, and won championship, money finally started rolling into the MLB. may not have the mass appeal of the current NBA, but the business model remains the same. Put the money in the right area, and the money will spray out. The fact that the owners of many MLB franchises can’t fathom it is sad, to say the least.