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
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