Monday, April 6, 2015

Maybe Stu Sternberg Will Negotiate Stadium Saga During the Season

This just doesn't seem to be a smart move from a business that's anxious to move a stalemate forward:
Matt Baker writes:
“We are not doing this during the season,” Sternberg said before the Rays hosted the Orioles on opening day in Tropicana Field. “The one thing that I’ve found to ring correct and true was that you focus on baseball during the year, and that’s what we’re doing.”

Sternberg said he remains committed to keeping the Rays in Tampa Bay for the next 50-100 years. He said his door is always open and that he’s willing to look at any documents or proposals put in front of him. But the team “won’t be putting any work” into the stadium issue.

Last week, the council voted to hold a workshop “as quickly as possible” into the stadium issue and whether the Rays could look for a new stadium in Pinellas and Hillsborough counties.

“If it happens, great,” Sternberg said. “If it didn’t happen in December, and it didn’t happen in January, and it didn’t happen in February, and it didn’t happen in March, and here we are in April. There’s always hope.”

Sternberg called the Rays’ payroll – about $70 million – “beyond uncomfortable” and said it would put the franchise in the red financially. He said the Rays could boost the payroll from the bottom of the majors if its attendance rose accordingly.
The refusal to talk stadium stuff during the season isn't surprising; but as I wrote last week, the Rays have "an office full of smart folks who can certainly deal with their off-the-field business while Matt Silverman, Kevin Cash, and others do the on-field work."

It's also worth pointing out Sternberg said he wouldn't "re-re-renegotiate" if St. Pete's council rejected his December deal.  I said it wasn't believablecouncil rejected the deal;  and sure enough, the Rays re-re-renegotiated.

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5 comments:

  1. It will be an interesting year for sure. Sternberg must walk the talk at some point. Otherwise, St. Pete City Council will not feel the sense of urgency and will know that they can sit and wait.

    The question is what kind of re-re-re-negotiations will occurs behind the scene?

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  2. Sternberg called the Rays’ payroll – about $70 million – “beyond uncomfortable” and said it would put the franchise in the red financially.

    Sorry, I don't believe it. The Rays are an EQUAL PARTNER in a business that reportedly generated between $7 and $9 billion dollars last year and we're supposed to believe the team will lose money this year with a $70 million payroll? Somebody is fibbing!

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  3. Regarding:
    "Sternberg called the Rays’ payroll – about $70 million – “beyond uncomfortable” and said it would put the franchise in the red financially. He said the Rays could boost the payroll from the bottom of the majors if its attendance rose accordingly."

    The math is not going to work. Brian Auld is on record stating that if the Rays drew 10,000 more a game, which would put them close to middle of the pack for attendance, annual revenue would increase $20 million - don't know how much annual profit would increase. The cost of a new stadium is $38 million per year ($600 million for 30 years at 5%). So, right out of the gate, the Rays are $18 million in the hole with the new stadium. Furthermore, middle of the pack payroll is now $106 milion per year based on the fact that the average player salary for 2015 is $4.25 million. So how is Sternberg going to go from a $70 million payroll to a $106 million payroll after incurring $18 million in additional net expenses over what he has now?

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    1. I agree Scott.

      That only way the Rays will be profitable with an average payroll is to have way more people in the stadium (more revenues from tickets, food, souvenirs, parking) and this will have a direct impact on revenue from TV.

      It all start from the attendance. A new stadium will not change the situation without mass transit system that brings more people in the stadium.

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