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Old 10-02-2013, 04:44 PM   #1
tejdog1
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Minor league financials/revenues?

Would it be way way too much hassle to do this?

We (can) hire our own minor league coaches, and I believe minor league salaries for players are like... maybe 2.5k per month? Maybe more for top draft picks. Then cost of stadium maintainance/operation/employees, you can average that out, too.

Then attendance/concessions can be modelled and set a uniform ticket price across the league which is small ($8? $10?) and it's an additional source of income for the parent club.
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Old 10-02-2013, 05:41 PM   #2
blasek0
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Minor league teams aren't responsible for players/coaches/non-business ops staff's salaries, though, for the most part.

The minor league team, in most cases, only does stadium upkeep, vendors, ticket sales. The major league teams actually pay the minor league teams to help with costs, in exchange for handling all the non-baseball related business and stadium upkeep, while the team handles all the baseball.

So, think of it as a property management company (the minor league team) and the renters who use the space when they need it (the major league team).

The problem isn't that it'd be terribly hard to add, it's more that the system isn't all that useful, because in most cases they're separate business entities. Being the GM of the Huntsville Stars is a lot like running a movie theater in a large chain, someone else tells you what movies you're showing and when, your job is just to keep the theater clean and provide concessions.

Edit: However, adding player development contracts might make things a tiny bit more interesting.

Last edited by blasek0; 10-02-2013 at 05:42 PM. Reason: PDCs
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Old 10-03-2013, 12:34 AM   #3
Le Grande Orange
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Quote:
Originally Posted by blasek0 View Post
Minor league teams aren't responsible for players/coaches/non-business ops staff's salaries, though, for the most part.

The minor league team, in most cases, only does stadium upkeep, vendors, ticket sales. The major league teams actually pay the minor league teams to help with costs, in exchange for handling all the non-baseball related business and stadium upkeep, while the team handles all the baseball.
Just to offer some specifics to the above, here is how the costs are split between the major league club and its minor league affiliate.
  • The major league club supplies the manager, coaches, trainer, and players, and pays for all of their salaries and benefits as well as related costs (e.g. payroll taxes, unemployment insurance, workman's compensation, etc.)
  • The major league club pays for all the spring training expenses of the minor league club
  • The cost of balls and bats is shared, with the minor league club paying for one-quarter to one-third of the total cost, depending on the classification
  • Travel during the regular season and playoffs is paid for by the minor league club, except for hotels, for which it pays roughly two-thirds of the cost.
  • Uniforms are entirely paid for by the minor league club
  • The minor league club is responsible for the day-to-day operating costs of the club, e.g. game day costs (ticket takers, ushers, security, etc.), stadium operations (power, water, maintenance, upkeep, grounds crew, etc.), advertising, ticket sales (sales staff, printing costs, etc.), general and administrative office staff and related expenses, and so forth
  • Minor league clubs pay a 5% "tax" on their gross ticket sales to the major leagues
  • I'm not certain, but I believe the minor league is also responsible for the pay of all its umpires and their related costs

Last edited by Le Grande Orange; 10-03-2013 at 12:37 AM.
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