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 41,000 students. With 11 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.
