Attanasio reportedly interested in buying the Dodgers

[MJLiverock]

"We are going to have 2.7 million this year and we are going to lose money," he said. "I think it's a foregone conclusion that we are going to lose money this year. I don't see any way that's not going to be the case. If you can't stand the heat, don't go into the kitchen. We are committed to putting a winning team on the field. We did everything we could to do that with a big push with pitching. We threw a lot of money at it and it didn't work. We are going to be back to the drawing board and figure it out."

 

No matter who is singing, seems like the same old song, Brewers will lose money...record attendance, record sponsorships, record merchandising, what more can the team do? I guess the team loses money regardless of the ownership. Curious if anyone ever leaked the Brewers financials, along with the Marlins, Pirates, Mariners?

He said the same thing last year, but they ended up making money. Since he made the most recent statement, they already saved $2 million by not signing their 1st round draft pick. Forbes has the Brewers as one of the most profitable teams in baseball on a yearly basis.

http://www.forbes.com/lists/2010/33/baseball-valuations-10_The-Business-Of-Baseball_Income.html

 

The Brewers ranked 23rd in MLB for operating profits. Also marking the 4th consecutive year of a decline. The operating profit of just over $10MM is not necessarily the true profits of the firm since it does not include Interst Expenses, Depreciation, Amortization, or Taxes. Depreciation and Amort are non cash expenses but interest and taxes are very real cash expenses so Mark A. could be telling the truth that they were not profitable on a true accounting or after tax sense.

 

What is true is the Brewers are not one of the most profitable teams in baseball and even after making the playoffs they did not see a bump in operating income profits. Their peak operatinig profit year was 2005 and has decline each year since, most likely moving opposite payroll as the revenue have been pretty much maxed out over the last couple years. Revs have been in low $170MM's with 3 million in attendence. I'd say the team right now is at about max payroll since they have whittled the operating profits down to $10MM which on $171MM in revenues isn't some sort of huge profit margin. A 5.8% operating margin is worse than most grocery stores, a notoriously low margin business, which rely on high volume to make money.

 

 

[PKBadger]

The people here are the right age and in the right financial standing to make a baseball team profitable, which is why Attanosio bought the team.

So the people in Wisconsin are younger and make more money than people in other states?

 

I'd really like to see the stats behind this assertion. I've read countless stories about the "brain drain" here, as our best and brightest are leaving the state to find work because salaries in WI are comparatively low. And I grew up in Racine, a city that relied heavily on manufacturing and sadly is on the decline.

[Never Outhustled]

The people here are the right age and in the right financial standing to make a baseball team profitable, which is why Attanosio bought the team.

So the people in Wisconsin are younger and make more money than people in other states?

 

I'd really like to see the stats behind this assertion. I've read countless stories about the "brain drain" here, as our best and brightest are leaving the state to find work because salaries in WI are comparatively low. And I grew up in Racine, a city that relied heavily on manufacturing and sadly is on the decline.

 

Attanosio has stated one of the reasons the Brewers were attractive was that demographically they were a larger market, in the 10th to 12th range.

 

[jeffy]

So the people in Wisconsin are younger and make more money than people in other states?

 

Why younger? I thought baseball fans tended to be older, not younger.

 

http://www.gallup.com/pol...icans-baseball-fans.aspx

 

..there are significant age differences on the favorite sport question. In the combined data from the 2004-2005 measurements, just 6% of 18-to 29-year-olds say baseball is their favorite sport. That compares with 10% among 30-to 49-year-olds, 11% among 50-to 64-year olds, and 18% among those aged 65 and older.

[thebruce44]

WestSideWillie[/b]]No matter who is singing, seems like the same old song, Brewers will lose money...record attendance, record sponsorships, record merchandising, what more can the team do? I guess the team loses money regardless of the ownership. Curious if anyone ever leaked the Brewers financials, along with the Marlins, Pirates, Mariners?

This is the first year under Mark they will lose money, and Mark said they would from the start of the season even if they broke $3 mil in attendance. He also said he spoke with the other owners and got them to sign off on a lose this year. Personally, I think he upped the payroll to $90 mil to make up for the sunk costs of Hall and a few others. It was a one time deal in which they wanted to take a chance and make a push after they pulled in a profit the last couple of years.

 

Regardless, it is in no way the same old song. The Brewers have shown that they can break even or make a profit by drawing around $3 mil fans and start with a payroll around $82 mil with a few moves during the year depending on how they are doing. This year was a special case and Mark was very open about it from the beginning.

 

Additionally, 2 years from now is when the new TV deal kicks in that will provide an additional $10 mil of revenue a year. So if they can get back to maximizing revenue out of Miller Park a $90 mil + payroll isn't out of the question. Look at how far we have come in the last 5 years.

 

In terms of the Brewers financials being leaked, the state senate did an audit on the Brewers a couple years back when Wendy was the owner. It was pretty scary how in debt they were. In fact, it showed just how much money they were losing. I suggest you check it out (google it, the whole thing is online as a pdf) because it sounds like you are implying that Mark is trying to pull one over on us when he has been extremely forthcoming, and in my opinion generous, to the payroll and the general public.

[PKBadger]

So the people in Wisconsin are younger and make more money than people in other states?

 

Why younger? I thought baseball fans tended to be older, not younger.

 

http://www.gallup.com/pol...icans-baseball-fans.aspx

 

..there are significant age differences on the favorite sport question. In the combined data from the 2004-2005 measurements, just 6% of 18-to 29-year-olds say baseball is their favorite sport. That compares with 10% among 30-to 49-year-olds, 11% among 50-to 64-year olds, and 18% among those aged 65 and older.

 

I don't disagree that baseball fans skew older. But in general younger folks have more disposable income (or spend more) - this is why advertisers covet that 18-34 demographic so much.

[WestSideWillie]

and the old ownership gets audited, to the point of leased cars and front office salaries. New ownership says they are losing money,

they are forthright, honest, great ownership. Go figure. Merchandising, 2.8 million in attendance, according to biz VP Schlessinger

marketing is all time high in revenue, national broadcasting is huge, but the team will lose money. Wonder if it is a net loss, compared

to operating loss, with debt reduction? It makes me think though, IMHO, if the team cannot make money after three halcyon years

then when? Talk about the next radio contact, JComm is bleeding red ink and no longer has the deepest of pockets so that is not the greatest

point to begin talking about increase b'cast rev. And where is the radio competition? None, Where is the cable TV competition? No one besides

FSN- TWC? They keep eveything local, plus it would not be statewide, so they are not an option. Only other option is a local station with a

state wide cable presence.

[endaround]

The audit was in the days before $30-40m in revenue sharing. The Selig's had issues, having to borrow form Pohlad to make payroll from March until June when TV revenue checks came. Different scenario now.

[thebruce44]

It makes me think though, IMHO, if the team cannot make money after three halcyon years then when?

Every other year under Attanasio.

[thebruce44]

Talk about the next radio contact, JComm is bleeding red ink and no longer has the deepest of pockets so that is not the greatest

point to begin talking about increase b'cast rev. And where is the radio competition? None, Where is the cable TV competition? No one besides

FSN- TWC? They keep eveything local, plus it would not be statewide, so they are not an option. Only other option is a local station with a

state wide cable presence.

Sorry, I can't really understand what you are saying. If you are asking about broadcast revenue, Wendy signed some horible deals that we had to work through but the new ownership group leveraged a new deal last season when ratings were at an all time high after the playoff run.