*****Official 2019/2020 Houston Astros offseason thread*****

1,025,868 Views | 9892 Replies | Last: 3 yr ago by BMX Bandit
CFTXAG10
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I missed this article back in April when it was posted, but it does a good job of explaining the economic impact to the Astros specifically.

Link to Article

Quote:

According to Forbes' valuations, the Astros were worth $1.85 billion in 2019. The $420 million total revenue they generated was sixth highest among the 30 teams. Of that number, $180 million came from gate receipts.

Savings on player salaries will somewhat mitigate the massive gate loss. The Astros' opening day payroll, according to Spotrac, was slated to be the highest in franchise history $206,783,333.
CFTXAG10
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I missed this article back in April when it was posted, but it does a good job of explaining the economic impact to the Astros specifically.

Link to Article

Quote:

According to Forbes' valuations, the Astros were worth $1.85 billion in 2019. The $420 million total revenue they generated was sixth highest among the 30 teams. Of that number, $180 million came from gate receipts.

Savings on player salaries will somewhat mitigate the massive gate loss. The Astros' opening day payroll, according to Spotrac, was slated to be the highest in franchise history $206,783,333.
CFTXAG10
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I missed this article back in April when it was posted, but it does a good job of explaining the economic impact to the Astros specifically.

Link to Article

Quote:

According to Forbes' valuations, the Astros were worth $1.85 billion in 2019. The $420 million total revenue they generated was sixth highest among the 30 teams. Of that number, $180 million came from gate receipts.

Savings on player salaries will somewhat mitigate the massive gate loss. The Astros' opening day payroll, according to Spotrac, was slated to be the highest in franchise history $206,783,333.
TRM
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NM missed an earlier thread
shano0603
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Just getting into the Snell stuff. Is this guy really complaining about only making 3.5 million instead of 7 million? Especially when there are tens of millions of Americans who are unemployed now?

Worried about getting sick because of this? What about all of the "essential" people who have been working normal jobs with normal wages throughout all of this.

**** that dude. 3.5 million to throw a baseball and not being near other people. Or people making $8 an hour to restock grocery shelves and come in close contact with hundreds of people a day.

Not surprised by the way he talks as he is dumber than a box of rocks.
Bulldog73
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From what I'm seeing around, the players generally ok with prorated for games played. Where the players are complaining now is about another 33% being asked for from that 50%. I haven't really researched why that's being asked for or if it's legit, but several players, including Bauer has mentioned that. Bauer was on twitter saying that he had 0 problem with 50%, but the extra 33% was ridiculous.
CFTXAG10
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Go read Bauer's house painter analogy on Twitter. Pretty good stuff.

Some of the players think they should get the prorated amount based on games played. Owners aren't getting "full" prorated revenue because they are losing the "40% gate". I am not for the players bearing the entire loss here, but there has to be some structure that would allow the owners/players to share the losses. If that is a revenue split then so be it. Doesn't have to 50/50, it can lean towards favoring the players more. Just get something done that is fair for all involved.

On another note, I think MLB needs to get creative with ways to generate revenue to make up for the losses and split it up among the teams (Owners and Players). Random ideas: Don't go full on no fans, but instead allow bidding for socially distanced seating at ballparks. Re-negotiate TV contracts where possible OR get more games on national television than originally planned. IF it comes back in July the viewership is going to be huge. I hope they are smart enough to already be brainstorming on some of this.
n_touch
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Quote:

Go read Bauer's house painter analogy on Twitter. Pretty good stuff.
He keeps rising on my list of favorites. Check out his agent.

Mathguy64
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Bob Watson passed away yesterday. Kidney disease.
AggieEP
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The owners have already saved about 50% in salaries for this year, they stand to lose most or all of the gate revenue which is about 1 million per game. 1 million x 81 = 81 million.

The Astros payroll for this year is about 210 million, divide by 2 = 105 million saved.

This is obviously very rough math (I used the average of all gate revenue across MLB) but gives you an idea of why the owners aren't panicking right now. There are obviously tons of other factors and teams that average more fans per game stand to lose more revenue, but the owners have a path to walk out of this with "acceptable" losses, especially the league comes back first and TV ratings spike.
Mathguy64
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It's not just ticket revenue they lost. They also lost TV and radio income, concessions (food, drink and merchandise sale) and any parking that they directly receive. And as noted those that are paying for stadiums or stadium work still have to pay for that.

The owners want to pay less than 50% because they say they can't afford it. The players say fine, open your books and show us. That's the hangup. The owners don't want to do that. Because if they show they are making tons of money the players will demand higher contracts in the future.
Ag_07
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Not mention staff they're paying like coaching staff, FO guys, ticket sales staff (if they weren't furloughed), media relations and PR staff, clubhouse staff, etc etc.

They have more expenses than just player salary.
Farmer1906
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Ag_07 said:

Not mention staff they're paying like coaching staff, FO guys, ticket sales staff (if they weren't furloughed), media relations and PR staff, clubhouse staff, etc etc.

They have more expenses than just player salary.
Add in what it costs just to maintain MMP. Utilities, construction (new area in RF), grounds crew, taxes, and on and on.

Gramercy Riffs
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Good article about Nolan Ryan on ESPN today. Fun ways of looking at his K record:
Quote:

Ryan struck out 17.2% more than Randy Johnson. Barry Bonds would have needed to hit 885 HR to beat Aaron's record by 17.2%. Gerrit Cole struck out 326 batters in 2019. He could do that 17 seasons in a row and still be 173 K's short of the record.
Ag_07
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I was wonder how all this affects the teams contracts with food service providers like Aramark.
Farmer1906
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Ag_07 said:

I was wonder how all this affects the teams contracts with food service providers like Aramark.
I am sure its fight.

It happened across the board.

I'm seeing with suppliers in my field. We're feeling it from our customers.

Then on a smaller level, you have teams in leagues for youth that are offering refunds, credits, or nothing at all.

The lawyers will end up winning like they always do.
W
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Gramercy Riffs said:

Good article about Nolan Ryan on ESPN today. Fun ways of looking at his K record:
Quote:

Ryan struck out 17.2% more than Randy Johnson. Barry Bonds would have needed to hit 885 HR to beat Aaron's record by 17.2%. Gerrit Cole struck out 326 batters in 2019. He could do that 17 seasons in a row and still be 173 K's short of the record.

and the crazy thing...Nolan pitched in an era where guys were trying to make contact, bunt for basehits, go the other way, just get on base, and so forth. Imagine him pitching in this one-true-outcome era
agdaddy04
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AggieEP said:

The owners have already saved about 50% in salaries for this year, they stand to lose most or all of the gate revenue which is about 1 million per game. 1 million x 81 = 81 million.

The Astros payroll for this year is about 210 million, divide by 2 = 105 million saved.

This is obviously very rough math (I used the average of all gate revenue across MLB) but gives you an idea of why the owners aren't panicking right now. There are obviously tons of other factors and teams that average more fans per game stand to lose more revenue, but the owners have a path to walk out of this with "acceptable" losses, especially the league comes back first and TV ratings spike.

All you had to read was a few posts up to realize you missed gate receipts by $100 million.
MaxPower
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It sounds like the owners have their own Snell. Rickets is claiming game day revenue is 70% of the Cubs revenue. This highlights what I think the #1 issue is. When the owners says 50% of the pie, that sounds great and fair to fans, etc. however, exactly how big is that pie and how will it be measured? Because this sport has never had revenue sharing, the players have never gotten full disclosure of that information. So, will the owners even provide that info and, even if so, how much time will it take the players to analyze it? I guarantee you the NFL and NBA PA's don't just get that info, spend a couple hours looking at it, stick a thumb in the air and say, "That looks about right, where do I sign the new CBA?" And having a Tom Rickets going around spouting off what's at best hyperbole and at worst a bold faced lie doesn't help gain the players confidence those numbers will be accurate. Keep in mind some teams have related party transactions with their tv networks, etc so what the team is paid is not fair market value. That's an issue that is non-existent in the NFL.

Basically the owners are adding complexity that takes months to agree upon in the normal course of business and putting pressure on players to shut up and take it. That's completely unfair and a dirt bag business move. If they want to be realistic about this they need to do so within the confines of how the players pay is already structured. They're fixed contracts so propose fixed changes. A simple "hey we think we are gonna lose 20% per game this year so help us out and take a 10% pay-cut per game." I'm not saying the players take it but at least it's a realistic way of trying to achieve the basic goal of further reducing costs with drastically lower revenue.
BMX Bandit
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Lots of truth there, but problem with saying "we are losing 20%" is that the number varies greatly by team.

they can't have one team paying 80% salaries and one paying 60% salaries
expresswrittenconsent
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BMX Bandit said:

Lots of truth there, but problem with saying "we are losing 20%" is that the number varies greatly by team.

they can't have one team paying 80% salaries and one paying 60% salaries

I mean sure they can, as the only sport without a salary cap. There's never been any hint of equity between teams. But you're correct that they won't.
BMX Bandit
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expresswrittenconsent said:

BMX Bandit said:

Lots of truth there, but problem with saying "we are losing 20%" is that the number varies greatly by team.

they can't have one team paying 80% salaries and one paying 60% salaries

I mean sure they can, as the only sport without a salary cap. There's never been any hint of equity between teams. But you're correct that they won't.


Yes, they "can" but players wouldn't agree nor would owners.
expresswrittenconsent
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Right. So "wont" works better than "cant".
BMX Bandit
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expresswrittenconsent said:

Right. So "wont" works better than "cant".


They "can" all agree to give the money to charity, but that's also not happening.

If neither side would agree to something, then it essentially "can't happen".

W
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there may be some owners that look at their books and say...at this point it would be best to cancel the entire season
mwm
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They're teasing us with the prospects of baseball in 2020. The players & owners will end up leaving you & me as the jilted lover.
W
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the players that would really lose out if the entire season is cancelled...are the veterans with just 1 or 2 years left on their big contracts. They would not be able to recoup the money so to speak down the line, because they are too far past their prime.

Reddick is a good example. Supposed to make $13 MM this year. Wherever he ends up playing in 2021...he might get $5 or $6 MM. Not going to be close to $13 MM.

that's why a team (like the Angels) with a lot of high-priced veterans might not be that interested in playing in 2020. Go ahead and burn Simmons' last year, Pujols' second-to-last year, and another year on Upton's bad contract

YNWA_AG
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the last of the bohemians
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YNWA_AG said:



I don't feel sorry for a league that put all of its cheating issues on one team.
Ag_07
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I will say this has nothing to do with the Astros or baseball even but when talking about owners hurting one can't help but think of Tillman.

With casinos, restaurants, and the Rockets shut down that guy has to be losing his ass.
Bulldog73
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Wasn't he pretty maxed out in buying the Rockets too similar to Crane?
Ag_07
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I don't know but I imagine Crane is still alright as I expect his logistics business is probably humming right now.

As are a lot of these owners. They bought teams after making their fortune on other businesses. It's not their main source of income.

Except Tillman's businesses are all shut down.
Teddy Perkins
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According to Tilman, he's fine.

https://theathletic.com/1788029/2020/05/01/less-money-more-problems-rockets-owner-refutes-rumors-of-his-demise/

Quote:

But here's the bottom line about Fertitta's bottom line, if you will, from his vantage point: He remains confident that he'll come out of this perilous period, and the notion of him taking on minority owners to ease the economic pain or perhaps even selling the Rockets at some point is simply not happening.

"The Rockets would never be sold, unless the whole world came to an end and then it wouldn't matter, ok?" said Fertitta, whose Rockets (40-24) were tied for fifth in the Western Conference when the season was suspended. "If I ever sell the Rockets, it's because we don't exist anymore as a country with the rule of law. We're having anarchy in the street, and at that point there's no buyers.

"There's a reason that I made it through the '87 financial crisis, and 2000, and the 2007 (recession), because I've always kept so much liquidity. It's just like me borrowing $300 million a few weeks ago (at a steep rate of 13 percent, according to The Houston Chronicle), when I was able to do it when nobody else could at first. Why not buy even more insurance? I have a huge amount of liquidity, and a lot of different sources of income. I'm not happy right now (with the financial impact), but I haven't taken an equity partner, I didn't have to give up warrants to borrow money. "

And he has zero interest in selling any minority ownership stakes.

"I don't need partners so I don't have partners," he said. "There's just no interest in having partners. I think all owners would love not to have partners, but not all teams financially can do that. I have the opportunity that me and my family can own this team 100 percent, and there's no reason to ever change that."

"I have cash flow to last me a long, long time with no restaurants opening," Fertitta said. "But yet, by this weekend, I'm going to have over 200 (restaurants) open and almost all my hotels open. Different people are in different situations, and what people don't understand is I have more buckets than most."
expresswrittenconsent
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Whew
CFTXAG10
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Bregman jersey online at Dicks in XL or XXL for $50 while it lasts....
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