Sunday, March 31, 2013
Way back in November, after the dust had settled from the massive fire-sale trade between the Marlins and Blue Jays, we looked at the motives behind the trade (and others that helped the team cut its 2013 Opening Day payroll to around $39 million (according to the AP). We wrote:
The Marlins can profit without competing so long as they keep payroll low (the Kansas City Royals have been doing this for years). This was the team's strategy in the years leading up to the opening of Marlins Park; it is 100% more insidious now that they have opened a new stadium financed largely by local governments. The fans are legitimately outraged, and calls for Loria to sell the team are entirely justified.But it looks like even with a bare-bones payroll the Marlins will still lose considerable money in 2013, according to a report from the Miami Herald. The Herald's Barry Jackson was able to look at (but not photocopy) ten years worth of team financial documents, and gave us the following tidbits:
- The Marlins lost $43 million* in 2003, the season they won a World Series.
- The team earned a combined $110 in profit from 2006-2009, when payroll was very low. That followed a four-year period in which the team lost $60 million.
- MLB revenue sharing payments ranged from $65 million to $75 million per year through 2009
- Loria gets paid via management fees disbursed to another company of his. The team paid $3.2 million in management fees in 2009. Loria also collects interest on money he has loaned the team (of which he is the controlling shareholder).
- The Marlins only get $17 million per year in local TV money (their contract expires in 2020), well below contracts of even teams in much smaller markets.
- The Marlins lost $47 million in 2012, and expect to lose money in 2013, even with a 60% reduction in player payroll.