MLB clubs have cash to burn (Reds w/40 million outside revenue)

[missionhockey21]

MLB clubs have cash to burn

By Hal McCoy

Dayton Daily News

ST. LOUIS | With $40 million in outside revenue flowing into their bank account this season, it stands to reason the Cincinnati Reds could invest in a couple of top pitchers, if CEO Carl Lindner doesn't stuff it into his pocket before the team is sold.

Money from where?

Baseball signed an eight-year, $2.368 billion contract with ESPN, $296 million a year to be divvied among the 30 major-league teams. Mix in a radio deal for $11 million a year, an Internet deal for $30 million a year, an XM Satellite Radio deal for $60 million a year and the teams will split $397 million a year.

That's $13.23 million a year for each team from new media deals, and each already gets $14 million a season from Fox.

And when the Washington Nationals are sold, a huge profit goes to the teams. MLB purchased the Montreal Expos for $120 million, and now, as the Nationals, they'll be sold for $450 million. That's an $11 million profit for each team.

Add 'em up and it comes to nearly $40 million in revenue for each team, above what they make on their own.

"Baseball is in a golden era," said Commissioner Bud Selig. "This sport has never been this popular."

Nearly 75 million fans paid their way into major-league parks, an all-time record.

Ante up, Reds.

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[Geki Ace]

We'll probably be down to 50 million in payroll.