tag:blogger.com,1999:blog-538766058897662144.post3226553167028390518..comments2023-08-11T09:56:52.695-04:00Comments on The Black (and Gold) Spot: $292 millionVladhttp://www.blogger.com/profile/00514866680767385701noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-538766058897662144.post-54637618348875418942008-04-17T17:14:00.000-04:002008-04-17T17:14:00.000-04:00You're pretty close, but if we're talking about th...You're pretty close, but if we're talking about the same rule (and I think we are - there's a description <A HREF="http://espn.go.com/mlb/news/2002/0312/1350460.html" REL="nofollow">here</A>), then it's a rule about a team's ratio of debt to assets, not debt to profits. Specifically, a team's debt can't exceed 40% of its asset value, and because McClatchy was leveraged out the wazoo he fell afoul of the rule when they started enforcing it.<BR/><BR/>I think that rule may have been a casualty of the last CBA, but the Forbes breakdown also has a <A HREF="http://www.forbes.com/lists/2008/33/biz_baseball08_The-Business-Of-Baseball_DOV.html" REL="nofollow">list of franchises by debt-to-asset ratio</A>, and they have us right in the middle. As such, I think we're probably OK.Vladhttps://www.blogger.com/profile/00514866680767385701noreply@blogger.comtag:blogger.com,1999:blog-538766058897662144.post-67610302347280009982008-04-17T16:36:00.000-04:002008-04-17T16:36:00.000-04:00I think I read somewhere at post-gazette.com (a 2-...I think I read somewhere at post-gazette.com (a 2-month old Dejan Q&A?) that MLB requires all teams to make a certain amount of profit, based on a percentage of their debt (with exceptions for teams with new stadiums, like the Pirates). a side-effect of this requirement apparently included the A-Ram trade a few years back. <BR/><BR/>anyway, the difference between required profit and the $18M guesstimated profit will likely limit any acquisitions this year, with signing bonuses for draft picks presumably also coming out of that pot.<BR/><BR/>- humbuckerAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-538766058897662144.post-77089931814317347912008-04-17T15:24:00.000-04:002008-04-17T15:24:00.000-04:00I forgot all about this coming out. Thanks for the...I forgot all about this coming out. Thanks for the heads up Vlad. I should note that the article about the Braves was really insightful. That team is so well run. Also they are owned by Liberty Media, who owns FSN Pittsburgh, which I find somewhat interesting.<BR/><BR/>Also it is amazing what a team in a similar market like Cleveland can do. Good business management, baseball management, and winning seem to bring in the profits too. What a novel idea!Michael Jhttps://www.blogger.com/profile/15713604131136345828noreply@blogger.com