The star-studded Major League Baseball franchise – which scored a dramatic, 3–1 win over the Tampa Bay Rays in Game 6 of the Championship Series on Tuesday night – was nonetheless slammed with a loss of nearly $ 125 million this season, The Post has learned.
This is worse than the league average in a year that was devastated by the coronovirus. In an interview this week, MLB Commissioner Rob Manfred revealed that the league’s 30 teams are expected to collectively lose between $ 2.8 billion and $ 3 billion this season, averaging $ 97 million per team.
There are big market teams – including the losers and the Mets – and despite their wins, the Dodgers will be no exception, according to sources in the team’s financial information. In a Tuesday interview with CNBC, the Dodgers’ chief executive Stan Kasten admitted that the team’s revenue had dropped by more than $ 100 million this season.
“Any team, or more and more, because we have so many fans and we take so much revenue in a normal year,” Cressey said. “Most of us didn’t get it this year.”
Kasten was not detailed, and a Dodgers spokesman declined to comment. However, a source close to the team said, the loss came after the Dodgers went to corner last year, making a profit of nearly $ 60 million for the 2019 season. The source said that if the MLB canceled the 2020 season, the Dodgers would lose very little.
Indeed, Greg Boris states that the Major League Players Association represented and ran sports-management programs at Adelphi University.
“You wouldn’t ask yourself if you were a bad business owner,” Boris told The Post. “Why would you want to reduce these losses next year? I hope fans enjoy the World Series, because I don’t know when we’ll see baseball again. ”
According to Forbes, in 2019, the Dodgers collected $ 185 million in gate receipts – significantly higher than the average, although less than the Yankees’ $ 287 million. Forbes said the average ticket price for the Dodgers was $ 43 compared to the Yankees at $ 65. Overall, the Dodgers have a presence of about 40 percent of the total.
One sports banker said that this is with the average MLB team, which takes 40 percent from media rights (national and local) and 40 percent from sponsorship and suit deals.
The loss of ticket revenue coincided with the cost of the Dodgers’ staggering payroll, which was $ 108 million in 2020, the second-largest in baseball. Despite the 2020 season, which was sliced from 162 to 60 games – and despite the fact that the games were played in empty stadiums – the Dodgers, like all teams, paid players on a game-by-game basis. Was forced to.
They include stars such as left-handed starting pitcher Clayton Kershaw, who made $ 16 million in the short season, and outfielder Mookie Bates, who collected a salary of $ 10 million.
The Tampa Bay Rays, by contrast, attracted only 1.2 million fans in 2019 and made the 27th highest payroll out of 28 million. Accordingly, it is clear that he lost much less money than the Dodgers.
Sources said that as they weigh the prospects for 2021, big market teams are likely to make noise in the coming months to hit their bottom lines.
As of this year, all teams gave 48 percent of their local revenue to MLB, which shared it equally with all teams so that smaller market clubs such as Rage do not suffer losses against big market teams like the Dodgers when signing players .
Sources said that MLB’s collective bargaining agreement expires after the next season, and large market teams are argued to share a lower share of their revenue with MLB after this year’s disaster.
In the case of the Dodgers, the deficit this year is worsened by interest payments on a $ 400 million loan that the team took from a leveraged buyout in 2012, with Guggenheim Partners purchasing 90 percent of the team in a partnership in which He was headed by executive Mark Walter, investor Todd Bohli and NBA veteran Magic Johnson.
After taking losses to sign big player contracts and hoping they would become a championship club, the Guggenheim partnership started payroll at a more manageable level by trading high-dollar players such as Adrian Gonzalez and Scott Kazmir and the Dodgers Made profitable.
Last year, the owners of the Dodgers sold small minority interests in the deal, valued at $ 3.2 billion.