I don't believe this for a second.... Complete BS.
Of course teams will skew the data to make profits disappear and exaggerate losses. Its the smart business move. Think about it the opposite way... If the owners came out saying we made $100M in profit, the players union would roast them in the next contract. There's no way in hell these billionaire owners are going to lose money on these investments. They wouldn't get into the business if that was the case.
From the article:
Nightengale noted that the financial losses are measured in “paper money” only, and that the $1.8 billion figure does not really account for the growth that franchise owners are enjoying.
I think otherwise. Atlanta had to do a disclosure in Charlotte County Florida for their new spring training facility years back, they had negative cash flow 3 years running.
The Twins lose $35M/ year cash on cash I can verify via personal friend.
That's why teams sell now. They run up debt, defer salaries, spend recklessly for a year or two then blow it up (Marlins style), get a new stadium then sell out, taking the appreciation of the team as profit & using the losses as tax deductions against other incomes.
The Dodgers are destroying baseball.
www.forbes.com
