Buckhorn Calls Rays' a "Failed Business Model," Despite Big Profits

In the coverage of Rays' VP Michael Kalt's departure this weekend, Tampa Mayor Bob Buckhorn talked about the possibility of progress in the Stadium Saga with Rick Kriseman now at the helm of the city of St. Petersburg {link to Times' site}:

"Clearly it doesn't work in St. Petersburg,'' he said. "That is a failed business model.''

Except Rays baseball has been a brilliant business model since Stuart Sternberg assumed ownership of the team.  On-the-field, they've been stellar.  Off-the-field, they're believed to be one of the most profitable teams in baseball.

Forbes and Bloomberg both guesstimate the Rays make eight-digit profits every year, while the value of the team has at least tripled since 2005.  That's a business model that's working very, very, very, very well.

If there's any model that's broken, its the MLB competitive balance model.  Unlike other leagues where more revenue is shared, baseball's profits are distributed disproportionally and are largely dependent on market size and TV reach.