Tiger's ticket sales fall, Ilitch still spending

The division-leading Detroit Tigers have a large-market payroll with midsize market attendance…

Georgia (Jul 20, 2009) — The division-leading Detroit Tigers have a large-market payroll with midsize market attendance that's off 22 percent from last year, something the team said it was prepared for but has baseball insiders speculating about the team's long-term financial health. And to the delight of fans, if not economists, the team's owner is willing to spend even more to return to the World Series — even if it's a money-losing endeavor … “The attendance decline is out of step with the rest of the league. Attendance is down about 5 percent leaguewide, so the Tigers' 20 percent decline is not good,” said J.C. Bradbury, an economist and associate professor at Kennesaw State University near Atlanta . He's the author of The Baseball Economist and operates the baseball site Sabernomics.com … Continuing to win should help the team financially, as could adding a player through trades, said Bradbury, The Baseball Economist author. “Adding a good player to an already-good team could be the smarter financial move than cutting payroll and incurring losses. If the Tigers make it to the post-season then they will receive a portion of post-season gate revenue (40 percent for mandatory games and 100 percent for ‘if necessary' games) that could add to the team's coffers.” But trades have a problematic side because of the credit market these days, and can reveal something about the team's finances. “Even if the owner sees a business opportunity that will pay off down the road (like acquiring an All-Star veteran) unless he has cash on hand, he may not be able to make the deal,” Bradbury said. “If (Ilitch) is talking about pursuing such a player, then he probably feels that his cash situation is good enough to make such a deal.” ( Also: Cain's Business: Tigers see steep drop in ticket sales , MLive.com .)
 

Publication

Link To Article

http://www.crainsdetroit.com/article/20090719/FREE/907189996/1069


A leader in innovative teaching and learning, Kennesaw State University offers more than 150 undergraduate, graduate and doctoral degrees to its approximately 38,000 students. With 13 colleges on two metro Atlanta campuses, Kennesaw State is a member of the University System of Georgia and the third-largest university in the state. The university’s vibrant campus culture, diverse population, strong global ties and entrepreneurial spirit draw students from throughout the region and from 92 countries across the globe. Kennesaw State is a Carnegie-designated doctoral research institution (R2), placing it among an elite group of only 6 percent of U.S. colleges and universities with an R1 or R2 status, and one of the 50 largest public institutions in the country. For more information, visit kennesaw.edu.

©