Great Article On Pirates Finances

[love_that_reefer]

Updated finances story

Wow. This really opened my eyes to what exactly was happening in Pittsburgh and gives a whole new perspective on how things are being run there. It seems like they do have competent people there after all. One of these days we might actually see this team above .500. They have a nice core coming along with McCutchen, Tabata, Alvarez, Garret Jones and Meek. Plus I think they can get something when they trade Doumit.

[realmofotalk]

I'll give them the benefit of the doubt that they do have competent people in the front office. However, as exhibited by the comments below the article, the cynics will say the team's financial reports were prepared to deflate the profit total as low as possible.

There are plenty of MLB owners who should be nervous and even pissed off at the McCourts for their divorce proceedings and the Dodgers' financial statements that were released as a result, because it has exposed the field of accounting tricks that the McCourts were assuredly not the only ones in MLB to have used.

[Sabu88]

You have entered the SPINNN ZONNEEEEEE

They're showing only what they want to show.

[love_that_reefer]

These are the same audited reports they gave to MLB so I believe them to be true. Is it really hard to believe the Pirates made only $5.4 million last year with all the draft picks and upgrades they made to their facilities?

[realmofotalk]

You can read the documents here: MLB Confidential: The Financial Documents Baseball Doesn't Want You To See, Part 1

I liked this comment:

Wait, wait, wait... you mean all these successful businessmen who got rich being smart businessmen are actually operating at a hefty profit rather than the loss they like to lyingly scream about?

My belief system has been shaken to the core. What's next? An interview with Sammy Sosa wherein he says his numbers are legit?

[redsfan28]

There's probably only one team that loses money every year and that's the Marlins, simply because they have a total of 5 people show up at their games.

[Tobywan]

the Pirates made only $5.4 million last year

Not when you consider that is TOTAL profit after the TOTAL operating costs have been paid.

[love_that_reefer]

Huh?

[Tobywan]

The 5.4 million is what was left AFTER paying off the salaries, bonuses, operating costs and business expenses.

[Tobywan]

^^^ Though just like Sabu said that is what they have made public....remember they have the anti-trust exemption and don’t have to disclose every scrap of paperwork.

[love_that_reefer]

I don't see them lying to MLB though. Why risk it? I understand the $5.4 million is what they have left after all expenses. Owners aren't exactly lining their pockets with that. They barely covered their own taxes!

[Tobywan]

Rich people pay very little in taxes.

[love_that_reefer]

They pay a shit load more than I do! And when its a lot of investors, it adds up. $5.4 just doesn't go that far.

[Tobywan]

However, they don't pay as big of a percentage of that income compared to the average John and Jane Smiths as they have other "losses" they can claim from whatever other business dealings they have invested to offset the taxable income.

[love_that_reefer]

Regardless, these guys aren't making a lot of money on their investment. They might not be paying as much of a percentage but they are paying a lot in taxes