April 18, 2014

What is Bad For Manny Ramirez May Be Good For Dodgers In The End

Great story in the New York Times on the business of Dodger baseball without Manny over 50 games. You wouldn’t think that the Dodgers would actually improve their financial fortunes in this situation while also maintaining a reasonable shot at the post-season, but the argument that the NYT presents makes sense:

When McCourt agreed to pay Ramirez $25 million this year, he was counting on him to produce three streams of revenue. First, Ramirez would improve the team’s regular-season record and its likelihood of making the playoffs, attracting fans to the ballpark. Second, if the Dodgers reach the postseason, Ramirez may help drive them to a potential league championship or World Series. Those achievements are typically associated with increases in ticket sales the next season, as well as the addition of extremely profitable postseason games to the club’s schedule. Finally, expectations were high that the acquisition of a star like Ramirez would increase merchandise sales. None of these revenue sources are likely to be harmed.

about the probabilities and the money:

According to Clay Davenport of Baseball Prospectus, the Dodgers’ chances of playing in October fell by only 7 percent, to 82 percent, when Ramirez went out. And because he will forfeit nearly $7 million in salary, the club gained financial flexibility to improve as the season goes on without increasing its payroll. If General Manager Ned Colletti decides to use those savings to acquire a top starting pitcher at the trade deadline, the Dodgers would be a much more formidable opponent in the playoffs.

Full Article