Quote:
Originally Posted by CalCub
The reason you don't understand why team owners are "crying poor" when team valuations are often over $1 billion, is because you don't understand the difference between Valuation, Revenue & Profitability....they are 3 different metrics, but I guess when you blur them all together you get this perception that team owners are just hoarding stock piles of money from profits, which is not the case.
Yes, the March agreement demanded that future negotiations happen if the virus pandemic causes problems in how MLB normally operates, which turned out to be true when they realized the 2020 season won't have revenue coming in from ticket sales, so obviously the owners can't afford to pay the players full prorated normal salaries that assume there will be revenue coming in from ticket sales.
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The “stock piles of money” is the wealth they continue to build by growing the value of their team WHILE being profitable along the way. Why else would someone with strong business acumen hold onto a business that can be sold for an enormous profit?
I haven’t seen the actual language so can’t speak to the latter part. I’m also guessing part of the grievance is that box office revenues are estimated by many to have low profit margins factoring in operating costs. It’s all part of the show to get the easy money (tv deals, advertisements, licensing, etc).