Good evening.
Everyone is buzzing about this Bloomberg report that the Mets are once again for sale.
Now, I am no financial expert but when I read that….
Whoever buys the team will assume annual losses of at least $50 million, according to a person familiar with the team’s finances.
…I feel like this.
…like there’s no way, right?
I found an article on Forbes that says…
MLB’s central revenue (mainly national television money that is shared equally) was $2.76 billion in 2018, while local revenue (ballpark and local television money) was $7.29 billion.
Now, again, I am not good at finances but let me do some math. $2,760,000.000 divided by 30 (teams) is $92,000,000.
Payroll is projected at around $160,000,000. So now we need to make back about 70 million. Will the Mets draw two million people paying $10 a ticket? Yes, yes they will. So that would get me to losing 50 million.
Plus I have to pay debt service and Bonilla and stuff….so……maybe?
Of course at $20 a ticket we’re only losing $30 million (before debt and Bonilla etc). And we might get some parking commission, or Aramark may cut us in on some of the food. Again, I am bad at finances and don’t have access to the Mets’ accountants.
Maybe I should revisit that $7.29 Billion number mentioned above and divide that by 30. I imagine some teams like the Yankees (they play in New York City and all the advantages that come with playing in New York City) will do better than teams like the Marlins, but let’s assume the Mets are an average team and divide the $7.29B number by 30.
An average team, if the Mets are one, might expect $230,000,000 in local revenue. I’ll add that back to the $92,000,000 and I get like $320M. Now lets spend $160M on players, and pay Bonilla, and the electricity bill and all these coaches etc and yeah…..where’s all the money? Debt service?
I mean…I guess…maybe the team loses 50M a year? If it were me, I’d field 26 guys making the MLB minimum, and let everyone be mad at me, and pocket whatever is left from that $320,000,000. You guys are boycotting anyway.
So yeah, sure, the Mets are losing $50 million. But I seriously doubt it. Plus I am not good at finances.
