at recent days Anonymous survey, The Athletic detailed how a few MLB executives felt about the trade deadline recently. Most of the answers were normal, daily responses to the basic questions.
“How big of a market will Shohei Ohtani make by the deadline or deadline for the upcoming trade?”
random exec: “real big”.
Fabulous! Thank you for that insight into the MLB front desk. I totally couldn’t figure out that baseball’s hottest player who routinely accomplishes feats not done since Freddy McChtickins before World War I would draw such a large market. Thanks for explaining that. However, when asked about the Juan Soto deal, the executives provided answers that really got me scratching my head.
Athletic asked executives, “Does this make sense financially or in baseball?” While I can’t speak to the financial aspect because I don’t know all about managing a baseball team financially, I can certainly tell you that it makes sense from a baseball point of view. If you think adding one of the greatest little bats in the game today isn’t helping baseball, I’d like to point you to your local distributor, because you clearly smoke some of the best bats north of the equator. Financially it’s a small fee, but as any entrepreneur will tell you, you have to spend money to make money, and with the product the Padres put in the field every night, it’s hard to imagine a future where San Diegans aren’t interested in seeing their team blur the night of competition into the night outside.
Random CEOs can’t understand why the Padres family would make such a move.
“I can’t understand San Diego’s business model,” said one executive.
Another said, “I don’t know how they pay for that.”
Well let’s see. Soto is not in a huge contract for his talent level. This is where much of his allure originated. He is under the control of the team on a very friendly contract for the next two and a half years. He would have generated a lot of interest regardless of his contract, but that was just another factor that plays into how much each team wants to snatch him. It just makes $17 million This year, it will be subject to arbitration in both 2023 and 2024. There is a chance that arbitration will push him into the $40 million range immediately, but I find it highly likely that Soto won’t explode into the salary tier until his current contract expires after 2024, or unless Padres extends it. before that time.
Josh Hader isn’t on a huge contract either. Sure, $11 million might be a lot when you get close, but Padres are only paying half of that, plus Hader goes to arbitration next year, and given he currently has a 4.11 ERA – the highest level in his career – it’s possible that Padres negotiated a salary Less in 2023. Even if Hader sets out for the Padres family, and demands a higher salary, he will only have one year left on his contract in 2023. They can afford to keep one season.
Even if Soto and Hader are more expensive than they are, we have to keep in mind that this is a baseball game. The owners can pay whatever they want. There is no maximum salary. Sure, there’s a luxury tax, but I’m sure Dodgers, Yankees, Mets, and others will keep their incredibly talented roster and pay relatively meager fees without hesitation. Oh no! They have to pay less than a million in luxury tax fees after spending $250 million on their listing! How do they survive?!
The truth is that any team can buy players such as Soto, Fernando Tates Jr., Hader and Mane Machado; Owners just have to be willing to open their pockets. Unfortunately, most owners do not want to do this, thinking that they can win some good luck and a lot of heart. (Editor’s Note: Or is it just cheap). This is not an original Disney Channel movie. Passion and friendship don’t win trophies, players at Juan Soto’s level – although there aren’t many of them – do.
Machado, Tatís, Hader and Soto each cost just over $82 million this year. That might be too much for someone like Robert Castellini, owner of the Reds (400 million dollars net worth), but for someone like Ilitch Holdings owner of the Tigers (net worth $3.8 billion) or owner of the Twins, the Pohlad family (net worth of $3.8 billion), $82 million is like you or I find the change in our sofa cushions.
Don’t bother with the fact that bringing these players into your team will increase revenue, but that’s not much to the team if they are willing to open their pocketbooks. Sure, they might not bring the revenue the owner was hoping for and that could lead to more financial losses, but you never know unless you try, and guess what, small market teams don’t make as much money as they are. It might as well with some big names and championship ambitions and see if it fits your city. After all, the Padres family fills the house every night with deadline additions, and Tatís hasn’t returned yet.
Fortunately, one of the executives interviewed provided props to Padres and owner AJ Preller for his willingness to take pictures of the big-name players.
“I give their ownership group a lot of credit. They have been financially committed to building an incredible product out of the big leagues. They clearly believe that if you invest in building a strong brand, the money will work out in the long run. … I also believe that if I had As a team, I think it’s fun to win, so what’s the most fun thing we can do for me and our fans to watch? Let’s do it.”
This exec is absolutely right. Mark Cuban recently did a job Interview with GQAnd, in part of that interview, he talked about how the Dallas Mavericks lost money for years before they started making money, but by investing in the team, marketing the team, and winning the championship, the money eventually started to flow. MLB may not have the same collective appeal that the National Basketball Association currently has, but the business model remains the same. Put the money in the correct areas, and the money will spit out again. The fact that owners of multiple MLB franchises can’t quite fathom this is sad, to say the least.
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