Economics and Payroll

[fightinfunbags]

Found this tweet today and found it interesting to see a break down as to the commitment level of different franchises to invest in the payroll for the team.

 

[Fountain City Blues]

Well, I hope the Royals fanbase responds positively over the next year or so if the team is good. Generally takes 1-2 years for attendance to rebound. They have a good thing going right now. Finally are inclining organizationally.

 

[fightinfunbags]

Well, I hope the Royals fanbase responds positively over the next year or so if the team is good. Generally takes 1-2 years for attendance to rebound. They have a good thing going right now. Finally are inclining organizationally.

I think half back into the payroll of the players is a reasonable expectation for a fan base to have. That leaves another 10-15% for other expenses in the organization and a take away of some 30-35% in profits. The real money making for these owners comes when they sell the team.

 

[fightinfunbags]

Also…there are nine teams whose profits in 2023 are less than the Yankees payroll in 2024.

 

[steveringo]

This years Competitive Balance Tax threshold is $241m.

It looks like nine teams will be forking over extra money...

 

[ThomasTomasz]

Hopefully Rubenstein lets the Orioles spend to retain some of our young talent, and add via free agency. Orioles are a big ‘what if’ there.

Also, Peter Angelos was consistent in spending around league average in payroll for the better part of two decades- sometimes higher, sometimes lower. If the Orioles can even get back to that level of payroll investment, watch out.