We have been brainwashed!

[AtomicDumpling]

I think it is time we change our thought process as Reds fans. We have been so brainwashed into thinking the Reds cannot afford to pay their star players that we have lost touch with reality. We have gotten to the point where we just unflinchingly accept a low payroll and the loss of our good players to free agency. It doesn't have to be that way. I have seen independent studies showing the Reds and most other teams are making a profit. There is no reason the Reds should not be able to keep Adam Dunn AND go out and splurge for some free agent talent in the offseason.

Even if the Reds as a business were to lose a few million dollars per year in terms of net profit it could be a prudent business model if they are a contending team. The reason is because having a winning team builds a larger fan base, increases long-term ticket sales and merchandise (jerseys, pennants, hats, posters, etc) sales. Most importantly it increases the value of the franchise, and this is where the bulk of an owner's profit comes from. Owners make their money when they sell the team rather than from year-to-year profits.

For example, say I buy the team for $200 million, then operate the team for 10 years at an average loss of $4 million per year (total loss $40 million), then I sell the team for $300 million. I have made a net profit of $60 million even though the team lost millions of dollars every year that I owned it! The values of franchises really are growing that fast in reality and have been for years. So you can see how Castellini can make money by increasing the payroll. On the other hand, if the team sinks into perennial mediocrity the value of the team will not rise nearly as quickly and could even lose value.

In marketing this is called building a winning brand for your company. You can operate a company at a loss as long as you are growing the company and building it into a business someone will be willing to pay a large sum of money for later.

I hold out hope the penny-pinching was due to Carl Lindner rather than economic necessity. I hold out hope that Castellini will increase the payroll when the time is right -- maybe even dramatically increase it. The time will be right when the FO believes we can make a run for the World Series. This will come when the nucleus of home-grown players is good enough that one or two key additions of proven veteran stars can put the team into legitimate Series contention. This could be as soon as 2009. Votto, Bailey, Bruce, Stubbs, etc should be viable regulars that when combined with Dunn, Harang, Arroyo, Hamilton, Encarnacion and Phillips could be a very solid contending team. Add a star or two to that mix (a shortstop, a catcher and a closer?) and there is no reason why the Reds couldn't win the World Series.

Castellini is a competitive person who wants to win. Lindner was just a caretaker owner who felt he was doing the people of Cincinnati a favor by stewarding the team and making sure it didn't leave town (which would never happen). He didn't really care about winning and he didn't know a thing about baseball. Castellini does.

Let's change our thought process regarding the payroll. Let's not give the ownership of the Reds a free pass to go cheap on the payroll. We should expect Castellini to put up the money to field a competitive team. We should not take the "small market" excuse without a fight!

[NFLman2033]

i have been saying for years that if you want to make a profit from a Baseball team, you are in the wrong business.. all the best organizations tend to lose money, the guys that own them make their money elsewhere.. we need a Turner or a Stienbrenner.. because this whole small market large market deal is BS. there is no need to make profit from the team you own.. just win

[redsrbetter]

To further induce what Castellini's goals were when being introduced as the Reds new owner and see how it matches up with where we are today, we have to go back to that enchanting day of presentation. The day he anointed Reds fans with words of hope and encouragement.

Ten years ago, the Cardinals' situation was almost identical to where the Reds are now. A long-range plan that focused on building a world class organization by putting the right people in the right jobs was put in place. Improved performance led to improved attendance. Improved attendance led to more revenue. More revenue led to more payroll. Now, the Cardinals are a strong, consistent winner.

This tidbit from our new owner spoke volumes. Notice how I used past tense there. It only spoke volumes because it is not speaking now. It provided hope to the fans and the organization, but that hope has faded because he has not followed through with his plan.

If he is thinking that he is building an organization much like the Cardinals, then he is on the wrong side of sanity.

"putting the right people in the right jobs was put in place."

Mr. Castellini, do you think Jerry Narron is the right people? And if you say that it is Krivsky's call and you trust his judgement, then you give the fans no choice but to doubt your judgement in hiring the wrong GM. Which is exactly the opposite of where you said you wanted to be.

Mr. Castellini, have you increased the payroll for this team? No you have not. Why do you think that is? Its because your plan was drawn out nicely, but you did not execute it properly. I simply do not see you caring enough as a "fan" to promote sound decisions.

Lets carry on:

Our first step will be to create one of the most respected organizations in baseball. We'll forge a winning attitude and culture. We'll ensure that the best people are in the right roles with the resources to win.

Needless to say, keeping Narron on as manager is defeating his first step.

In our Reds organization, if our fans ain't happy, ain't nobody happy.
That is going to be our driving force.
We will create a winning team worthy of the unwavering loyalty of our fans.
We are America's first professional baseball team. We believe that once again we will be the best. We've seen how a winning organization shines a national spotlight on our community and our region. That's what this community deserves.
I thank you all for this opportunity.
We look forward to bringing championship baseball home for all of us. Thank you.

Again, good words. But where is he at with this? he is losing fans at great rates because he does not have a winner on the field. He is going to have to get passed the "we are better than this" stuff and actually make something happen that blooms a better product into a winning organization. You want to keep the fans happy because you want to keep revenue up. I get that, it is the best way to do business. But how do you keep them happy Mr. Castellini? You do just as you planned. You put the right people in the right positons to maximize profits, then use said profits to supply the resources needed to win.

To answer Atomic's great post, I think we are being brainwashed a bit. But not so much on the money perspective as on the personnel perspective. The money situation comes in to play after he sees the right guys making the right decisions. He doesn't have that right now. The man wants to see a competitive team being built from the ones he hired to make things happen. Those are not the right guys. At least his field manager is not. The GM's judgement on character far outweighs his judgement on talent. That is the only reason why Narron still has a job. But Castellini is going to have to step on Krivsky's toes for a moment and take charge. This way he can go forward with his plan. The shoe doesn't fit with the current management and the change has to be made now.

Castellini says it all starts with the right people, I couldn't agree more.

[AtomicDumpling]

i have been saying for years that if you want to make a profit from a Baseball team, you are in the wrong business.. all the best organizations tend to lose money, the guys that own them make their money elsewhere.. we need a Turner or a Stienbrenner.. because this whole small market large market deal is BS. there is no need to make profit from the team you own.. just win

Absolutely correct.

Most owners of pro sports franchises are not in it to make money. They made their fortunes in the business world, then decided to buy a team as a toy. The team is their release from the stress of the business world. They are often willing to lose some money on the team in order to flex their competitive muscle.

As owner of the Reds, I want Castellini to exercise his competitive spirit. If he is a winner he needs to prove it.

We as Reds fans need to stop accepting excuses from ownership as to why they are not willing to increase the payroll. Castellini, use those millions of dollars to help this team win or sell it to someone who will. That is what we want. That is what we expect. That is what we demand.

[AtomicDumpling]

redsrbetter,

Thanks for the excellent post and for researching BCast's words. You raised some excellent points.

I agree that Castellini has not built this team into anything resembling the Cardinals at all. He has not put the right people into key positions. Until he does that this team will fail.

Narron has shown beyond all doubt he is not a good manager. He is a good guy and a fine person, but there are many better managers in the league. He is not the correct person to take this team to the top. Make a change!

Krivsky has done some good and some bad, but the proof is in the pudding. The team is worse now than when he took over. I wouldn't fire him yet, but he'd better start showing results or he should be gone too. Get ready to make a change!

The Cardinals have a strong staff of coaches. Their pitching coach is one of the two best in the league. LaRussa may be an ass, but he is a very shrewd tactician and he rules with an iron fist. The players respect him. They are very analytical in their approach. They utilize the latest sabermetrics and video technology.

The Reds' coaching staff is not distinguished at any position. They utilize the same mindset and tactics used in the "good old days" and have not adapted to modern thinking nor do they use the latest technology to keep up with the competition strategically. Small ball loses to power ball 90% of the time.

This team doesn't resemble the Cardinals in any way, shape or form.

[Mario-Rijo]

This team doesn't resemble the Cardinals in any way, shape or form.

I disagree:

Cards 21-29

Reds 21-33

[NFLman2033]

I disagree:

Cards 21-29

Reds 21-33

lol they still have 2 less losses