Time To Step Up

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Originally Posted by twinsnorth49

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Originally Posted by edavis0308

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Originally Posted by USAFChief

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Originally Posted by twinsnorth49

They do have one additional expense change that didn't exist at the Dome, a $150M loan payment.

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So then we agree. The Pohlads didn't put a dime of their own money towards the new stadium.

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Does everybody else think that payroll is magically going to shoot up once the Pohlads pay of their $150M bill they are footing, which like Chief said, is being paid off via revenues? Once it is paid off, our payroll SHOULD go up that amount to maintain the 50-52% into payroll. Does everything really think that will happen?

I for one see where Chief is coming from.

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Let's review this again, if the Pohlads borrowed the money, they would pay down the loan with stadium revenue. If they paid all the money up front, they would pay back the expenditure each year with stadium revenue. You say potato, I say potato. Payroll has gone up with revenue, what's the issue?

Investing $150M has a far higher rate of return than the debt service on borrowing it, it's pretty simple.

Rich people

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There's a third option.

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Originally Posted by edavis0308

I should add that it seems like the disagreement here is on the perception of the wording as to how the Pohlads would be footing the bill. While both instances technically display them paying their portion with their own money.. I feel there is a degree of dishonesty to the latter using new revenues to pay the bill. Especially when so much public money is being used and those said revenues could be going towards bettering the on field product. It's pocketing the profit when you should be*reinvesting into your product.

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Clearly the trend in attendance figure would reflect what will happen when the "product" goes down. To expect the Pohlads to pay money out and not recoup their investment in some point in time is ludicrous beyond belief. There are choices to be made by the Twins. Do they want to compete with the Royals or do they want to compete for championships. If it were competing with the Royals the Bill Smith would still be the GM. The Angels spent a lot of money on CJ Wilson and Pujols, found a rookie of the year in their minor league and only improved by three games. The Dodgers took on a ton of salary and played worse. Ryan needs to find the right parts. A high salary in and of itself does nothing for the win column. Finding the right players does. If you are thinking it is going to happen in less than a month you are being foolish.

In checking Forbes 2011 operating profit was less than the last year of the dome and one from 2005 (picked one at random)

Other than the Twins Dailey staff, which ones of you out there runs a business to not make money?

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Originally Posted by old nurse

To expect the Pohlads to pay money out and not recoup their investment in some point in time is ludicrous beyond belief.

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The Pohlads "recoup'd their investment", and then some, by having the value of their franchise go from an estimated $216M in 2006 to over $500M today.

http://www.statista.com/statistics/1...ns-since-2006/

"Recoup'd their investment" is a pretty generous term, anyway, since they made no actual "investment." In reality, they were given a $300M gift.

Rich people indeed.

I predict a lot of continued posturing by the Twins, followed by a few low ball offers that they know will not be nearly enough to entice any of the top talent (via trade or free agency), followed by a few "well, we tried" statements, and in the end they will end up with a mediocre bottom of the rotation starter or two that will excite nobody. Hopefully, they prove me wrong, but based upon past history I'm not counting on it.

It was difficult to read through the whole thread but was this thread started last year after the Marlins signed Buehrle, Reyes and Bell to ridiculous deals. That worked out awesome.

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Originally Posted by kab21

It was difficult to read through the whole thread but was this thread started last year after the Marlins signed Buehrle, Reyes and Bell to ridiculous deals. That worked out awesome.

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The Blue Jays seem to think it did.

Just because something works or not does not mean it was a good strategy or not. If so, life would be predictably boring.