Despite On-Field Slump, Sox Earned More in
Last year, Sox fans saw their hopes for a repeat title dashed by
June, but John Harrington cried all the way to the bank.
According to Financial World's annual survey of Major
League Baseball finances, the Red Sox earned more money in 1996
than in their division-winning 1995. The Sox' market value
also increased 20%, to $172 million. So much for the claim that
they couldn't afford to re-sign Roger Clemens...
Here's how the Sox compared to their rivals.
Gate receipts. Last year the Red Sox took in $27.1 million
at the gate: sixth highest out of 28 teams, but only fourth in
the AL East. The Orioles set the pace with $51million in gate
receipts, while the 53109 Tigers earned only $12.4 million.
Media revenues. Only two teams’ books earned more
from national and local broadcasting than the Red Sox’
$30.9 million. But the Yankees, one of those clubs, received more
than twice as much, with $69.8 million. The Milwaukee Brewers
trailed with $15.1 million.
Stadium revenues. In 1996 the Red Sox earned $16.4 million
from luxury boxes, parking and concessions, good for 10th in the
majors. Although most of the clubs with new parks earned at least
$5 million more, led by the Texas Rangers with $25.5 million, the
Red Sox remained comfortably above the major league average of
$12.6 million. Meanwhile, the Toronto Blue Jays received only
$3.1 million from SkyDome.
Overall revenues. Red Sox revenues of $88.4 million ranked
sixth, behind the Yankees ($133.3 million), Orioles, Rockies,
Indians and Dodgers. Ten clubs took in $50 million or less, with
the Pirates receiving only $39.9 million.
Player expenses. The 1996 Red Sox payroll of $42.2 million
ranked 10th in the majors. Not surprisingly, the Yankees led with
$63 million, while the Brewers trailed with $17.5 million.
Administrative expenses. With $30 million in overhead, the
Red Sox and White Sox tied for sixth most expensive front office.
The Dodgers set the pace with $36 million in administrative
costs, while the penny-pinching Reds spent only $14 million.
Operating income. Financial World estimates that the 1996
Red Sox earned $16.3 million, up $0.9 million from 1995. The Blue
Jays, who outbid the Sox for Clemens, earned $1.8 million
Again confounding Bud Selig and the doomsayers, the average club
earned $7.3 million in 1996. Selig’s own Milwaukee Brewers
and the "impoverished" Montreal Expos each earned over
$6 million. Even the Pirates and Tigers turned a profit.
Meanwhile, Wayne Huizenga has put the Florida Marlins up for
sale, claiming that the team will lose $30 million in 1997.
Financial World says the Marlins earned $2.8 million last
year. In my next column, I'll explain how owners like
Huizenga hide income and inflate their losses to make Major
League Baseball appear much less profitable than it actually
Most and Least Profitable Teams in 1996
In the Black
1. Yankees ($38.3 million): World Champs off the diamond as
2. Rockies ($23.0 million): Not bad for MLB's 4th smallest
3. Orioles ($19.0 million): Peter Angelos still has money to
4. Rangers ($18.9 million): Most luxury-box income in the
5. Cubs ($18.3 million): Hugely profitable when bad, so little
incentive to improve
6. RED SOX ($16.3 million): Earned more in '96 than in
division-winning '95 season
In the Red
24. Mariners (-$1.7 million): An $8.1 million improvement from
25. White Sox (-$5.2 million): Reinsdorf now less popular than
26. Giants (-$6.0 million): New stadium to the rescue in 1999
27. Phillies (-$6.4 million): For most of 1996, DL had higher
payroll than active roster
28. Reds (-$14.0 million): Is Schottzie 02 running this team?
Most and Least Valuable Teams in 1996
1. Yankees ($241 million)
2. Orioles ($207 million)
3. Braves ($199 million)
4. Rockies ($184 million)
5. Dodgers ($178 million)
8. RED SOX ($172 million)
24. Royals ($88 million)
25. Padres ($86 million)
26. Expos ($77 million)
27. Twins ($77 million)
28. Pirates ($71 million)
Copyright © 1997 Doug Pappas. All rights
Originally published in the July 1997 issue of Boston
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