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**alnorth** · 02-10-2014, 07:03 PM

Just for fun, I dug up some old research I did a couple years ago. The books are not open, all we can do is speculate on revenue and costs, but a lot of the big stuff *IS* known, so I think we can take a reasonable stab at a break-even estimate. I have links to support most of this if needed.

Revenue:

National TV: Long-term $50MM. Right now, probably about $45MM since TV deals tend to start below average and end above average.

Our crappy local TV deal: $20MM

Tickets: About $38MM?

Revenue Sharing: About $35MM

Total: Roughly $138MM

Not Included: Concessions, licensing fees on apparel, ad revenue from sponsers. Probably not much there. Jackson County takes all the parking.

Costs, other than salaries for players on the 40-man roster:

MLBPA pensions and related costs: $10MM

Bonus Pools: varies, but probably $10MM

Non-player salary and benefits, ignoring the owner and the board (includes front office, groundskeepers, scouts, GMDM, etc): Unknown, but this has got to be at least $15MM, could be more. The Royals employ over 150 people who aren't players.

Team Travel: Probably $5MM

Rent to Jackson County: 250k + 5% of net receipts, whatever that is.

Utilities: Probably $2.5MM

Costs not included above: Arizona, minor leagues, vendors, debt service (if any?), probably other stuff I didn't think of.

The non-player costs are at least $42.5MM, and could be more. So, our break-even for the 40-man roster could be as much as $95MM (+$5MM when the national TV deal matures), but its probably a bit less than that, so I can believe $90MM. Our next opportunity for a big revenue bump (unless we start selling out the K) is when the local TV deal expires.

Also, the value of the franchise obviously goes up every year since we're talking about one of 30 franchises in a rich-boy's club that wealthy men covet membership to, so he'll make money someday if he sells the team, but I don't count that as part of the annual break-even point.

02-10-2014, 07:03 PM	#1195
alnorth . Join Date: Dec 2002 Casino cash: $57156239	Just for fun, I dug up some old research I did a couple years ago. The books are not open, all we can do is speculate on revenue and costs, but a lot of the big stuff IS known, so I think we can take a reasonable stab at a break-even estimate. I have links to support most of this if needed. Revenue: National TV: Long-term $50MM. Right now, probably about $45MM since TV deals tend to start below average and end above average. Our crappy local TV deal: $20MM Tickets: About $38MM? Revenue Sharing: About $35MM Total: Roughly $138MM Not Included: Concessions, licensing fees on apparel, ad revenue from sponsers. Probably not much there. Jackson County takes all the parking. Costs, other than salaries for players on the 40-man roster: MLBPA pensions and related costs: $10MM Bonus Pools: varies, but probably $10MM Non-player salary and benefits, ignoring the owner and the board (includes front office, groundskeepers, scouts, GMDM, etc): Unknown, but this has got to be at least $15MM, could be more. The Royals employ over 150 people who aren't players. Team Travel: Probably $5MM Rent to Jackson County: 250k + 5% of net receipts, whatever that is. Utilities: Probably $2.5MM Costs not included above: Arizona, minor leagues, vendors, debt service (if any?), probably other stuff I didn't think of. The non-player costs are at least $42.5MM, and could be more. So, our break-even for the 40-man roster could be as much as $95MM (+$5MM when the national TV deal matures), but its probably a bit less than that, so I can believe $90MM. Our next opportunity for a big revenue bump (unless we start selling out the K) is when the local TV deal expires. Also, the value of the franchise obviously goes up every year since we're talking about one of 30 franchises in a rich-boy's club that wealthy men covet membership to, so he'll make money someday if he sells the team, but I don't count that as part of the annual break-even point. __________________ how many emo kids does it take to change a lightbulb? HOW MANY?! none they just sit in the dark and cry Last edited by alnorth; 02-10-2014 at 07:08 PM..
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