The business of an MLB franchise

[TKGuy]

There has been an outcry about the Twins spending this offseason. According to Forbes, the Twins had operating income profit of $23 million last year. My question is really about that number. Is that $23 million account for the ML franchise only?

 

What role does the ML franchise have in operating and/or funding the minor league affiliates, baseball academies, etc? Does the $23 million includes any of those costs?

 

I also read something yesterday that MLB was considering a bid for the regional fox sports channels which have to be sold before the fox merger will be approved by the federal government. That seems like that could be another huge source of revenue by the owners if MLB can pull that off

[Richie the Rally Goat]

There has been an outcry about the Twins spending this offseason. According to Forbes, the Twins had operating income profit of $23 million last year. My question is really about that number. Is that $23 million account for the ML franchise only?

 

What role does the ML franchise have in operating and/or funding the minor league affiliates, baseball academies, etc? Does the $23 million includes any of those costs?

 

I also read something yesterday that MLB was considering a bid for the regional fox sports channels which have to be sold before the fox merger will be approved by the federal government. That seems like that could be another huge source of revenue by the owners if MLB can pull that off

the Twins (or the Pohlads, not 100% sure) are already part owners of Fox Sports North going back to the days of the merger between MSC and VS1(both had Pohlad money in them). MLB ownership would mean a payout directly on ad revenue and an indirect payout in the MLB revenue sharing like with the national broadcasts and streaming revenues.

 

Does the MLB revenue sharing from streaming hit operating income? I would guess so, because it’s like ticket sales or ballpark advertising, compared to the sale of the streaming service to Disney which was the result of selling an asset so it would fall into equity.

[old nurse]

The Forbes calculations do not include equity nor profit from regional sports networks. Revenue calculations are based on taxes paid. Sales tax records are public. The profit is an educated guess as they do not have  the exact costs of the operations. The operation being how much the teams put into scouting, training, putting on the show, management costs and more

[Doomtints]

All of this is impossible to know, of course.

 

But if the Twins had $23M left on the table at the end of last year and are spending $20M less this year, they just found a way to double their profits in one year.

[nicksaviking]

I also read something yesterday that MLB was considering a bid for the regional fox sports channels which have to be sold before the fox merger will be approved by the federal government. That seems like that could be another huge source of revenue by the owners if MLB can pull that off

If so, I’d think that would help to open the door to greater revenue sharing which is probably going to be key in the CBA if the MLBPA is going to have any hopes of thrifty teams substantially increasing their payrolls.

[TKGuy]

If MLB were to buy the Fox Sports Regionals, maybe they could get rid of those asinine blackout regulations and I could pay directly for streaming here in Iowa. Instead there are 6 home teams in Iowa where streaming is blacked out, MN, MIL, CHC, CHW, KC and STL

[darin617]

Why do I think I read someplace that the Twins made $160M last year? Making $23M doesn't sound like a very good year. It's obviously better than losing money. I do find it very hard to believe that's all they made.

[yarnivek1972]

There has been an outcry about the Twins spending this offseason. According to Forbes, the Twins had operating income profit of $23 million last year. My question is really about that number. Is that $23 million account for the ML franchise only?

 

What role does the ML franchise have in operating and/or funding the minor league affiliates, baseball academies, etc? Does the $23 million includes any of those costs?

 

I also read something yesterday that MLB was considering a bid for the regional fox sports channels which have to be sold before the fox merger will be approved by the federal government. That seems like that could be another huge source of revenue by the owners if MLB can pull that off

The Twins are definitely on the hook for player and coaches salaries. Truth be told, that’s a pretty big chunk of the expense. Most of the rest is travel and housing/hotels. Beyond salaries, I would guess the MLB teams contribute something to their affililiates, but I could be wrong. After all, cities do in a sense bid on being an affiliate. If they do contribute, it would certainly be counted before figuring profit.

[ahart10]

If MLB were to buy the Fox Sports Regionals, maybe they could get rid of those asinine blackout regulations and I could pay directly for streaming here in Iowa. Instead there are 6 home teams in Iowa where streaming is blacked out, MN, MIL, CHC, CHW, KC and STL

I’ve ranted about this to everyone I know hahaa

You mean the Yankees, Red Sox, or dodgers are on today?

[Winston Smith]

The Pohlads have a LOT of money, with that goes a lot of accountants. They will know every deduction and write-off possible and some they make up. 

Whatever we hear is the profit it will be a lot more in actual cash taken out.

Needless to say the Pohlads won't need food stamps any time soon.