Dolan: Tribe will lose 16 million this year

[mixman]

Short article on ESPN. Dolan damage control.

http://sports.espn.go.com/mlb/news/story?id=4381129

CLEVELAND -- Cleveland Indians owner Paul Dolan projects the team will lose $16 million this season and says the recent trades of Cy Young winner Cliff Lee and All-Star catcher Victor Martinez were necessary long-term moves.

Dolan estimates the team will draw about 1.7 million fans this season, more than 500,000 less than the team expected before Opening Day.

The Indians, who came within one win of the World Series in 2007, expected to contend this season but went into Thursday's game at 45-62 and in fourth place in the AL Central.

The trades of Lee and Martinez have led to a backlash from Indians fans.

Dolan also said ownership will have input into whether manager Eric Wedge returns next season.

 

[chiefwahoo]

Guys who want to make money don't get into the business of owning a professional sports team. I long for the day when we get an owner for this team that actually puts winning ahead of everything else.

 

[johnnycake44022]

Guys who want to make money don't get into the business of owning a professional sports team. I long for the day when we get an owner for this team that actually puts winning ahead of everything else.

I respect your opinion, but you are going to be waiting a long time for that. Major Leauge sport are both a business and a hobby for these owners and as a result, profits and losses will always be part of the equation. You have to have revenues equal costs in the long run otherwise what is the appeal. These guys have a lot of money, but not enough to sustain losing $16M on a consistent basis. To me, I don't particularly like the Dolans..they are really not exciting owners like Gilbert is with the Cavs. But, they are also in a very flawed and unfair system. Basically all these mid market teams are like the minors for the large market teams. You have to play the game differently with that in mind. We have small windows and if it doesn't take you to the promise land, you have to blow the team up and try again with young underpaid guys.

 

[Wulfgar1224]

It is not surprising that Dolan would open his books this year and whine about losing money and take a backhanded swipe at the fans. No one in this management would dare accept responsibility for this failed season.

 

[chiefwahoo]

But, they are also in a very flawed and unfair system. Basically all these mid market teams are like the minors for the large market teams. You have to play the game differently with that in mind. We have small windows and if it doesn't take you to the promise land, you have to blow the team up and try again with young underpaid guys.

Totally agree with what you are saying here, 100%. And I'm not just glossing over those facts. The current setup in MLB is EXTREMELY flawed and is killing franchises like ours. But it's no excuse to just scrap things the way we have and seemingly give up hope for 2010 as well (I only say this because I can't see any way we field an MLB-caliber pitching rotation in 2010). The Central is so winnable it's pathetic. Look at the Twins - they are currently 53-54 and only 3.5 games out of first. I see this division going this way for the foreseeable future, given the franchises that we are competing with. I'm not asking for the world, just wanting to stay competitive. I don't think that's unreasonable for us to ask as fans.

If Larry Dolan wanted to break even (at worst) then he should have never gotten into MLB. The writing was on the wall back when he purchased the team. It isn't like the system suddenly changed and took us all by surprise. Unfortunately, baseball is about spending money to win. And when I say that I don't mean you have to go Yankees or Red Sox crazy spending... just fortify what you have with some decent free agent help, instead of injury gambles on short one-year deals. You do that and the fans will come. You don't, and they won't. I'm just tired of ownership crying poor every time things go in the shitter. He should have known what he was getting into, and even more importantly - he should know not to whine about losing money and expect sympathy from this fan base.

I'm just a tired Tribe fan that can't stomach watching us be a feeder system for the big market teams. At some point something has to give - hopefully a lockout can eventually happen and the playing field can be somewhat leveled. But even then, would anyone be excited about our chances to go on a consistent dominant run with Mr. Dolan still being the majority owner?

 

[cdt]

Winning and revenue go hand in hand. Do the Yankees make money because they're perennial bottomfeeders? Figure it the fuck out you shrewd jackass.

 

[AZ_]

Winning and revenue go hand in hand. Do the Yankees make money because they're perennial bottomfeeders? Figure it the fuck out you shrewd jackass.

Please don't ever compare the Indians to the Yankees again.

The Indians could win 5 straight titles, they still wouldn't hold a candle to the Yankees in terms of revenue.

Don't be foolish, the Yankee brand is the most popular brand in sports history...they don't even have to win to keep that going.

There are people who don't even like baseball buying Yankee hats as a tribute to New York's culture.

Revenue goes hand in hand with market size in almost all cases...REVENUE has everything to do with winning in baseball...not the other way around.

There is very little argument to the contrary.

 

[DougHeil]

Dolan also said ownership will have input into whether manager Eric Wedge returns next season.

I thought that was the most notable statement made in that small paragraph. We knew the Indians were losing money this year, but the Dolans stuck in that message for whatever reason. I was thinking Shapiro would get free reign on what to do about Wedge. We now know that won't be the case, and the Dolans thought they better say it.

 

[MoFlo]

Winning and revenue go hand in hand. Do the Yankees make money because they're perennial bottomfeeders? Figure it the fuck out you shrewd jackass.

Um..

The Yankees are in New York City.. The Indians in Cleveland, Ohio.. MAJOR difference..

The Yankees also make enough money on their TV network to cover damn near their entire payroll, so barely any money for the payroll actually comes out of the owner's pocket..

Also.. when your payroll is middle of the pack, but your team isn't winning and attendance is down near the bottom of the league for 2 straight years, you're going to retool a lil bit.. it only makes sense

 

[TAS]

It's all a fucking scam. The league is set up, so that 8-10 teams are competitive each year & the rest are just fucking fillers. The only way small market teams can be competitive is for the league to implement a salary cap.

Teams such as the Yankees wait until a team develops a player & they throw a bunch of money at him once he becomes a free agent.

 

[tedginnjr]

Winning and revenue go hand in hand. Do the Yankees make money because they're perennial bottomfeeders? Figure it the fuck out you shrewd jackass.

The YES network generated about $340 million in revenue last year based on 11.4 million subscribers, according to John Mansell, a media industry analyst. The Boston Red Sox-owned New England Sports Network produced $125 million last year with four million subscribers, he said.

http://www.nydailynews.com/sports/b.../2007-08-02_yankees_may_sell_yes_network.html

Note that this is referring to 2006 revenues.

In 2006....

Indians rights were previously held by FSN Ohio, which offered $35 million per year to keep them.

http://www.multichannel.com/article/122249-New_Indians_Network_SportsTime_Ohio.php

And that was a year after a 93 win season.

 

[MoFlo]

http://www.nydailynews.com/sports/b.../2007-08-02_yankees_may_sell_yes_network.html

Note that this is referring to 2006 revenues.

In 2006....



http://www.multichannel.com/article/122249-New_Indians_Network_SportsTime_Ohio.php

And that was a year after a 93 win season.

So that actually pays for the payroll & then some..

One thing we can all agree on for sure, is that the MLB has some serious issues in its system that need to be completely revamped

 

[ZooCrewDude]

There has to be a cap in baseball. Its long overdue.

As for Dolan, I have little sympathy for our ownership.

 

[tedginnjr]

Some extended Dolan Q & A... if you can handle it:

CLEVELAND, Ohio -- Indians President Paul Dolan met with reporters before today's game with the Twins at Progressive Field to discuss the financial state of the team and what impact that had on the recent trades of Cliff Lee, Victor Martinez and other players.
• Dolan said the Indians will lose $16 million this year despite receiving revenue sharing money from MLB.

The Indians are projecting attendance to be between 1.7 million and 1.8 million. At the start of the year it was projected at 2.2 million.

"When we had the best record in baseball in 2007, that's what we drew (2.2 million)," said Dolan. "That's what we were hoping for if this team got off fast. We felt we could have the kind of success we had in 2007 if this team played up to its potential."

• Dolan said the Indians are not receiving loans from MLB such as the Texas Rangers have received.

"I can't speak for the Texas situation," said Dolan. "I don't know the facts, but I understand there is an extreme situation there.

"On the ranks of financial losers in Major League Baseball, we are high on the list, but we're not in a situation like that one that's being described in Texas."

• Dolan said there are no plans to sell the Indians.

"I get the suggestion to sell the team a few times a day," said Dolan, with a laugh. "We have not changed our plans in anyway."

Dolan, as he's said in the past, would be open to anyone interested in investing in the Indians.

"But we haven't been openly seeking that," he said.

• Dolan said an organizational review will take place at the end of the season to determine whether there will be changes in the coaching staff and front office.

"We will look at everything at the end of the season," said Dolan. "But we have to look at the full body of work. If you look at the last four seasons, we're fifth in the American League in wins, just behind the major markets. That's a significant accomplishment in today's baseball economy.

"If every four or five years we can have a shot at the World Series like we did in 2007. And compete for a playoff spot like we did in 2005, that's as good as it gets in this market.

"That said, I think we've had the talent the last couple of years to do better than we have. We have to understand why. We'll make the changes we need to make to correct those problems."

• Dolan said ownership would be involved if the decision is made to replace manager Eric Wedge, who has one year left on his contract.

• Dolan said the Indians will carefully review the performances of Wedge, his coaching staff, the scouting department and the front office during the offseason.

"Eric and his staff have achieved a lot in their time here," he said. "When he took over in 2003, in essence, it was an expansion franchise. In a short period of time, in baseball terms, he turned it into a competitive team. He and others deserves a lot of credit.

"Despite that, we have not been successful the last few of years with a team that should have been successful. We have to understand why that is. We have to understand that fans need and want to hear a different voice and feel a different approach. We have to balance that as we make our decision in the next couple of months."

• Dolan said the Indians must improve when it comes to acquiring and developing amateur players through the draft and by other means:

"We have a very good farm system," he said. "Could it be better, yes. We've had mixed results bringing in amateur talent. When we talk about reviewing our organization that will be part of the review."

• Dolan expects attendance to go down in 2010 following the Indians performance this year and the trades of Lee, Martinez and other Indians.

"We were going to see a downward trend next year whether we did something or not," he said. "Clearly what we've done here this year will exacerbate the downward trend. By how much I don't know.

"Under no circumstances will it be as great as the financial relief we've achieved by making some of these moves which gives us some financial flexibility (in the future)."

By trading Lee and Martinez, the Indians saved $16 million in club options. Lee had a $9 million option and Martinez a $7 million option for 2010.

• Dolan said fan reaction to the recent trades has been severe. He said it will affect the team's financial health.

"The reality is we were suffering financially before we made these deals," said Dolan. "Given the fact of the team's performance this year, and the fact that if had we stayed put, we would not not been able to go outside the organization to bring in any new talent (for 2010), we would have suffered even greater losses.

"What this is all about is that we have to look longer term. We have to look at 2010, 2011, 2012, 2013. . .

"We had advised Mark (Shapiro, general manager) that we could keep the team (before the trades) together for 2010, but the magnitude of the financial situation should we have not succeeded at a high level would have had a negative impact on the team for years to come.

"Now, given the level of talent we've infused into the system, and the financial flexibility we've given ourselves, we have a better chance of being successful in the years to come.

"The fans aren't happy with us now. But they wouldn't have been happy with us in the years to come if we didn't do what we've done now."

 

[Silky Smooth]