Quote:
Originally Posted by Prison Bitch
Because it would cost them $400M. At 10% interest that's 40m they'd have to find in savings on revenue of 130m. That can come from two sources: Slashing payroll 40m or raising revenue 40m. If people want lower payrolls or higher prices they should want Cerner
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I imagine they'd look at the team as another long-term investment and focus more on doing well over 10 years and 20 years than on balancing the purchase price immediately. That's what they've done with SKC.
Assuming they'd have to slash $40 million from payroll is going a bit far, I think.
For one thing, it assumes it's true the Royals are losing money last year/this year on payroll.
For another, it assumes they wouldn't improve the fan experience and drive attendance up. From what I've seen, I have no doubt that group would make sure it made the K a more fun, attractive environment and increase attendance and revenue.
Finally, those guys seem savvy enough to realize that the No. 1 factor for being profitable is winning and having good perception in your community. Buying the team and immediately slashing $30 million from the payroll would hurt your bottom line because it depresses excitement.
Even if they're trying to break even on the overall balance sheet, I don't think you'd see those guys chopping payroll into the $50-60 million area.