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BoSoxFan2 · 10-22-2013, 04:43 PM

Alright, then let's compare it to a somewhat average team-- say the Cleveland
Indians financial details here. So they make $186M in revenue yearly, or roughly 80% of the OOTP average. They spend $82M on players, or 83% of the OOTP average. If we assume that coaches follow the same trend, then yes it does seem reasonable, although once you factor in the cost of the Stadium in real-life there goes about $10M a year for building it, plus maintenance, and all the crews you have to hire, plus the hot-dog vendors and such, not to mention advertising, the profit margin drops significantly.
Let's do two teams just to check the calculations- how about an above-average- say the Red Sox, and a below-average (budget-wise), say the Rays.
The Rays:
Revenue: $167M(71%)
Player Costs:$81M(82%)
If we add on the OOTP average numbers for the rest of the costs it puts total expenditures around $98M(85%).
This puts the OOTP Profit Margin at 41%.
Factoring in debt and the stadium profit drops to ~30%.
Ballpark some salaries in there and ~20%ish profit.
Forbes says: ~6% in 2012, about 12% in 2013.
Now the Red Sox:
Revenue:$336M(144%)
Players:$176M(147%)
So yes it does look like OOTP ratios are correct for what it factors into account, even though there is much more to go. Looking at the Forbes site, Boston's final margin has been up and down, recently around $25M a year- or 7%, but sometimes as low as -5%.

10-22-2013, 04:43 PM	#3
BoSoxFan2 Minors (Rookie Ball) Join Date: Jun 2012 Posts: 42	Alright, then let's compare it to a somewhat average team-- say the Cleveland Indians financial details here. So they make $186M in revenue yearly, or roughly 80% of the OOTP average. They spend $82M on players, or 83% of the OOTP average. If we assume that coaches follow the same trend, then yes it does seem reasonable, although once you factor in the cost of the Stadium in real-life there goes about $10M a year for building it, plus maintenance, and all the crews you have to hire, plus the hot-dog vendors and such, not to mention advertising, the profit margin drops significantly. Let's do two teams just to check the calculations- how about an above-average- say the Red Sox, and a below-average (budget-wise), say the Rays. The Rays: Revenue: $167M(71%) Player Costs:$81M(82%) If we add on the OOTP average numbers for the rest of the costs it puts total expenditures around $98M(85%). This puts the OOTP Profit Margin at 41%. Factoring in debt and the stadium profit drops to ~30%. Ballpark some salaries in there and ~20%ish profit. Forbes says: ~6% in 2012, about 12% in 2013. Now the Red Sox: Revenue:$336M(144%) Players:$176M(147%) So yes it does look like OOTP ratios are correct for what it factors into account, even though there is much more to go. Looking at the Forbes site, Boston's final margin has been up and down, recently around $25M a year- or 7%, but sometimes as low as -5%.