Information regarding television markets

[Honorable_Pawn]

I thought I would share this the group. Scroll down to the bottom of the article. Hopefully this is helpful for those of you that precisely control your financials.

Here


Here is the image for those that don't want to follow the link:

Attachment 297649


Although not the point of this thread the article discusses what we in Tampa know but what the rest of the country does not when it comes to Rays fans. Tampa is a TV market (where the real money is) not a drive-up market. So the next time you think we don't have fans chances are we not only have more fans than you but we have a higher percentage of fans per capita than you (obviously excluding the big-boys).

[pgjocki]

But is the team able to earn any revenue from t.v.? Just having a big market doesn't equal profit or an interested fan base.

Also, as a lifelong St. Louis fan I can tell you that their media market extends hundreds of miles away from the city and the team has a much larger "regional" attachment.

[Honorable_Pawn]

no, but I'm guessing since there is little risk since they do not own the TV station that it's all about profit from advertisers. Also, Tampa Bay, has a larger than average baseball audience as a ratio to the total market size. Point of the article is that there is a large fanbase in Tampa Bay.

[Le Grande Orange]

Originally Posted by pgjocki

But is the team able to earn any revenue from t.v.?

According to the leaked financial statements from a couple of years ago, in 2007 and 2008 the club earned just $12.9 million and $13.4 million, respectively, from local television and radio broadcasting. In percentage terms, that amounted to a mere 9.6% and 8.4% of total revenues.

[Honorable_Pawn]

Originally Posted by Le Grande Orange

According to the leaked financial statements from a couple of years ago, in 2007 and 2008 the club earned just $12.9 million and $13.4 million, respectively, from local television and radio broadcasting. In percentage terms, that amounted to a mere 9.6% and 8.4% of total revenues.

Yes, that is what is so frustrating about this whole new-stadium debacle. If the Rays had negotiated a better TV contract we probably wouldn't even be having this discussion.

[Le Grande Orange]

Originally Posted by Honorable_Pawn

Point of the article is that there is a large fanbase in Tampa Bay.

If there is, then it's pretty clear that fanbase isn't interested in spending money on the club.

According to Forbes, in 2012 the club had the lowest total revenues in the majors. In terms of gate receipts, it was tied with Cleveland for the lowest in the majors. The leaked financial statements show that in 2007 and 2008, were it not for revenue sharing, the club would have had an operating loss of $21 million in both years. The club received $39.4 million in revenue sharing in 2007 which allowed it to record an operating income of $21.7 million, and in 2008 revenue sharing proceeds of $35.3 million pushed operating income to $14.2 million. Indeed, revenue sharing formed the club's single largest source of revenue in 2007 (29.4%; ticket sales were second at 20.9%) and was the second largest in 2008 (22.0% compared to 24.2% for ticket sales).

MLB's own market ranking system (as listed in the CBA) has Tampa as the 24th largest market. And the Rays' attendance figures speaks for itself.

Now, in fairness, there is some truth to claim that the club's woes stem in large part from its park location. According to 2010 census data, a total of just 421,586 lived within a 10-mile radius of Tropicana Field, the lowest amount in the majors. (Kansas City was second-lowest at 601,374. That's 43% more.) Within 15 miles the relative standing doesn't change - the Rays are still last (and KC goes up to 54% larger). Population within 10-15 miles of the ballpark is an important indicator for potential attendance.

If the Rays instead had a ballpark near where the Buccaneers' current stadium is (which itself is on the former site of a minor league baseball field), the population within 10 miles would be 663,742 which is larger than KC's by 10%, and the amount within 15 miles becomes 1,185,367 which also larger than KC's by 4%. So instead of the Rays being dead last in the majors by a notable amount in this metric it would instead find itself ahead of Kansas City. Would this access to a larger number of people near the stadium help the club's attendance woes? Possibly. At least, it shouldn't hurt.

(Realistically, though, the prospects for a new park situated somewhere in Tampa itself seem dim. Especially considering the absolutely sweetheart deal the Bucs got on their digs - entirely paid for by the public, and with the property taxes, maintenance, and other operating costs also paid for by the public. Given this degree of taxpayer largesse, I have a hard time seeing the residents of Tampa lining up to give another private sports team business a similar level of very generous treatment.)

[Thundercrack]

http://www.nytimes.com/2013/08/11/sp...anted=all&_r=0

interesting article about the Rays problems

[Ts-Rock]

very nice response LGO, tons of data and info. well done my friend!