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OT: Profits in baseball

Atlanta Panther

Junior
Gold Member
Jul 4, 2001
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Madison, GA
I just happened to see this in my Accounting book and thought it interesting . Wonder if the Buccos have set a new record:

"Profit, Loss, and Break-Even in Major League Baseball
Major League Baseball is a tough game and a tough business. Ticket prices, player salaries, stadium fees, and attendance converge to make it difficult for teams to make a profit, or at least break even. So, which major league baseball team was the most profitable in 2013? Well, it wasn’t the World Champion Boston Red Sox. Nor was it the star-studded New York Yankees. Then, it had to be the recently turned around Los Angeles Angels, right? Not even close. It was actually the worst team in baseball—the Houston Astros.

Just how profitable were the Astros? They earned $99 million in 2013, which was more than the combined 2013 profits of the six most recent World Series champions. How could the team with the worst record in baseball since 2005 have one of the most profitable years in baseball his-tory? By paying careful attention to costs and volume. Between 2011 and 2013, the Astros cut their player payroll from $56 million to less than $13 million. That’s right, all of the players on the Houston Astros baseball team combined, made less in 2013 than Alex Rodriguez (New York Yankees), Cliff Lee (Philadelphia Phillies), Prince Fielder (Detroit Tigers), and Tim Lincecum (San Francisco Giants) made individually. While attendance at Astros games has dropped by around 20% since 2011, the cost reductions from reduced player salaries have far outpaced the drop in attendance, making the 2013 Astros the most profitable team in baseball history. While no one likes losing baseball games, the Houston Astros have shown that focusing on the relationship between cost and volume can yield a hefty profit, even when they aren’t winning.

Source: D. Alexander, “2013 Houston Astros: Baseball’s Worst Team is The Most Profitable in History,” Forbes, August 26, 2013."
 
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