The Angels Can Afford A-Rod Because You and I Will Pay Him !!!
Here is the math on how the Angels can afford to sign A-Rod: You and I will have to pay for it.
IF MY MATH IS WRONG LET ME KNOW
With the recent announcement of an Angel Stadium ticket concierge service arriving for season seat holders, the writing is on the wall for a big raise in ticket prices. If they sign A-Rod, at least we know who will be getting that money.
Assume that first, season ticket holder discounts go away - all tickets are sold for the same price. Last season my $10 ticket would have had a face value of $15 at the gate. A Diamond Club ticket valued at $110 sold to season seat holders for $93 apiece. So that is all a thing of the past. Face for one is face for all.
Let's assume that there are 20,000 seats in the upper deck and 15,000 seats on the Field Level, 5,000 seats in the club level and 5,000 in the left field and right field pavilion seats.
View Level
View seats ranged from $12-$26. The median price then was $19, but since there were a lot more $12 seats than $26 seats, let's bring it down to averaging $18. 18 x 20K = $360,000. Sell out the View Section at face value and that is how much you make per game off of it.
Field Level
The Field Level ranges from $26 - $60, plus the elite Diamond Club. A majority of the seats are under $40, but a good chunk of them are almost triple that, so let's call the Field level average about $45. 15,000 seats times $45 = $675,000. Sell out the Field Section at face value and that is how much you make per game off of it.
Club Level
The club section houses the luxury boxes and tickets run $34 - $60. Let's call it an even $50 average and the Club level brings in $250,000 when sold out. Sell out the Club Section at face value and that is how much you make per game off of it.
LF/RF Seats
Seats in the outfield range from $9 - $15, but the option is available of buying a $5 children's ticket to some seats in this section. So make it an average here of $11 and this section generates $55,000 during a sellout.
This gives us a grand total of $1.34 million per sellout. Seeing as many games do not sell out, let's average the Angels' gross per game at $1 million per game simply by erasing the season ticketholder's discount. That is $81 million dollars a year in ticket sales.
If the Angels raise their ticket prices 10%, they will make $8.1 million dollars. If they raise them 20%, they will make $16.2 million. A 40% raise in ticket prices would bring in more than enough money to cover A-Rod's contract, assuming it is $30 million a year for 10 years.
At face value, my two season seats in centerfield would currently cost $30 per year. The A-Rod raise would make the pair cost $42. Quite frankly, a pinch. And I am in the cheapie seats. $3,402 a season for the 2007 division champs and A-Rod.
Okay, if you put it that way, I am in. How about you?
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73 comments
Comments
Well...
by Howie the Halo on Oct 31, 2007 1:07 AM PDT reply actions 0 recs
Si und non
After all, the team does have a good chunk of money coming off the payroll with the conclusion of Colon's and Hillenbrand's contracts, and the acquisition of A-Rod would make the team instantly more profitable in areas other than ticket sales.
I think an increase of 20% would be enough to get the job done. Moreover, I suspect it's the most the team could get away with in the aftermath of the rat fiasco without generating some bad feelings.
Of course, if the team acquired A-Rod and Johan Santana, a 40% increase would be far more palatable and easier to justify.
by rspencer on Oct 31, 2007 1:12 AM PDT reply actions 0 recs
I agree
by Crapper John MD on Oct 31, 2007 7:23 AM PDT up reply actions 0 recs
I am so game
Now, the best power hitting third baseman in the world is a free agent. What excuse does Arte have NOT to sign A-Rod?
by NPCody on Oct 31, 2007 7:21 AM PDT reply actions 0 recs
I'll pay. I'll pay.
(And I'll die laughing when A-Rod destroys the Yankees in the postseason.)
by 10 27 02 on Oct 31, 2007 7:39 AM PDT reply actions 0 recs
According to Baseball Reference:
Bartolo Colon $16,000,000
S Hillenbrand $ 6,000,000
H Carrasco $ 3,000,000
J Molina $ 1,350,000
TOTAL $26,350,000
Their replacements are making nowhere near that kind of money. And I know some players will be making more this year and I hope some of the young guys will be tied up long term, etc. That still won't come anywhere near $26M.
So I think the real issue is if they don't sign A-Rod. If we don't, we will have a drastically, ~20%, lower payroll next year. Unless someone mediocre gets signed for a god-awful amount.
If tickets go up and payroll goes down that much then we can all call Bull$$$$. I hope that doesn't happen.
by halos27 on Oct 31, 2007 8:08 AM PDT reply actions 0 recs
According to this morning's L.A. Times . . .
'Raises to core players such as Guerrero, Gary Matthews Jr., Orlando Cabrera, John Lackey and Garret Anderson, and a significant jump in closer Francisco Rodriguez's salary will add at least $16 million to the 2008 payroll.
'That leaves the Angels at about $100 million. Add Rodriguez, and the payroll jumps to about $130 million, not including the millions it would cost to insure his contract. The Angels, in need of rotation depth, also would have little room to add a quality pitcher.
'Unless the Angels, who could receive stiff competition in their pursuit of Rodriguez from the Dodgers, increase revenue significantly -- they're close to maxed out now -- Moreno could go from netting $5 million to $10 million a year to losing $15 million to $20 million a year . . . .'
by G Abbes on Oct 31, 2007 8:21 AM PDT up reply actions 0 recs
UM
Last time I looked we have 6 starting pitchers on the roster. That article seems a little slanted towards the "Angels can't afford A-Rod" opinion. I just don't agree with his "facts".
by anaheimisnotla on Oct 31, 2007 9:38 AM PDT up reply actions 0 recs
You forgot the flip side
The economics of owning a baseball team are a lot more complicated than just taking annual operating losses into account. As long as Arte can manage the cash flow situtation (he is a billionaire), he is building equity in the team. If the Angels win a WS title in the next 2 years, how much is that going to add to the team's worth?
by akathelorax on Oct 31, 2007 9:40 AM PDT up reply actions 0 recs
They are right. It would not be even.
Think about it. For the same amount of money that the Angels spent on Colon/Hillenbrand/Carrasco/Molina, they could plug one guy into that payroll structure and would get a hell of a lot more production then they got from all those guys combined last year!
That is one hell of a value proposition! 4 guys for $26 mill or one guy for $26 mill? 3 flame-outs and 1 journeyman for $26 mill, or 54 HRs and 156 RBI's and a league MVP out of one guy for that $26 mill?
by Stirrups on Oct 31, 2007 4:20 PM PDT up reply actions 0 recs
I'd do it
by Moondoggy on Oct 31, 2007 8:14 AM PDT reply actions 0 recs
Hey Rev
by Sinatrasratpack on Oct 31, 2007 8:54 AM PDT reply actions 0 recs
They are two years into
by Rev Halofan on Oct 31, 2007 10:27 AM PDT up reply actions 0 recs
Being that I work for Aramark vending...
Dang--all we would have to do is raise cotton candy prices and then we could afford A-Rod:
50 cotton candy per rack x $1 increase x 15 vendors x 3 racks x 82 games (don't forget the "Freeway game") = $184,500
Opps, maybe that could pay for Brandon Woods trips back and forth from Salt Lake
by Angel Hawker on Oct 31, 2007 12:13 PM PDT up reply actions 0 recs
I forgot to mention
Remember Owners don't care what the yearly payroll is, it's in a sense pointless, if the money is there they can spend it. 100 mill last year 125 mill this year but 15 mill more in income means that he is only really upping his payroll by 10 mill. not 25-30 as its seems on the surface.
This does seem doable
by Sinatrasratpack on Oct 31, 2007 9:01 AM PDT reply actions 0 recs
they already trimmed player payroll
by Rev Halofan on Oct 31, 2007 10:28 AM PDT up reply actions 0 recs
Ugh
by Higz on Oct 31, 2007 10:16 AM PDT reply actions 0 recs
Why?
by akathelorax on Oct 31, 2007 10:24 AM PDT up reply actions 0 recs
Uh
I'm all for people getting rich, but I'm not allowed to bitch when it costs me more money? Well, soooooorrrrrrryyyyy.
by Higz on Oct 31, 2007 10:34 AM PDT up reply actions 0 recs
That's the ownership...
Like Chris Rock said, "Shaq's not wealthy, Shaq's rich. The old white man that signs Shaq's check is wealthy." - Or something like that.
I believe the paper said yesterday that the Marlins will be getting $30 million in profit sharing this year! That could pay A-Rod next year, but probably won't happen.
by Wytelitning on Oct 31, 2007 11:16 AM PDT up reply actions 0 recs
I could be wrong...
Also, nobody who hits a ball with a bat "deserves" to make $30 million a year.
Wealthy, rich... it's the same thing.
Anyway, sure, having A-Rod would be great for this team. But I'm not going to be like everyone else in this thread and be all "Ooo, Angels, I'm all lubed up and waiting for you guys to rape my butt so we can have A-Rod."
by Higz on Oct 31, 2007 11:26 AM PDT up reply actions 0 recs
Deserves...
by akathelorax on Oct 31, 2007 11:59 AM PDT up reply actions 0 recs
Well, um, that was kind of my point.
Do you know any good Ethiopian jokes?
by Higz on Oct 31, 2007 12:10 PM PDT up reply actions 0 recs
You don't think they make profit???
Each team making $30 million or so just from MLB.com? Is that ridiculous profit from a
website? Maybe its just me.
by Wytelitning on Oct 31, 2007 12:14 PM PDT up reply actions 0 recs
Profits
If sports franchises are hugely profitable - even marginally profitable - then why is it so hard for teams to finance new stadiums? Why do some owners use sports teams as tax shelters? Why does profit-sharing exist (other than the ostensible purpose of "leveling the playing field")?
by Higz on Oct 31, 2007 12:48 PM PDT up reply actions 0 recs
That's who we are talking about.
by Wytelitning on Oct 31, 2007 1:42 PM PDT up reply actions 0 recs
Technically no profit
However there are often family members on the payroll at huge salaries (treated as fixed costs, not profits). Also, many owners own the regional sports network also, which happen to make enormous profits (and charge below market rates for rights fees).
But the #1 way owning a team is worthwhile is the value of the asset appreciates very fast. So you by a team for 200M, break even every year while giving your lazy kids and brothers a job, then sell for 500M after 7 to 10 years and you made out great.
by elricsi on Oct 31, 2007 1:05 PM PDT up reply actions 0 recs
wealthy does not equal rich
by SCHalo on Oct 31, 2007 10:02 PM PDT up reply actions 0 recs
true
by blaqhalo on Oct 31, 2007 10:58 PM PDT up reply actions 0 recs
Go be DRays fan...
by akathelorax on Oct 31, 2007 11:57 AM PDT up reply actions 0 recs
Oh I see...
by Higz on Oct 31, 2007 12:07 PM PDT up reply actions 0 recs
Gouging?
My point was that if you want to watch a team that pays low wages to its players, you have other options.
by akathelorax on Oct 31, 2007 1:14 PM PDT up reply actions 0 recs
Don't let your monocle fall out.
You seem to think that the only way to defray the costs of a huge player contract is through sticking it to the fans.
How about FSN pays some of A-Rod's salary? How about not creating the concierge position and use the saved money toward the salary? Find cheaper advertising outlets. Raise the price of ad space in the stadium. Shit, there's probably a million ways to pay for A-Rod's contract besides raising ticket prices.
But let's not consider any of these options. After all, everyone in Orange County is rich anyway so who cares if the ticket prices go up? Let the poor be Devil Rays fans!
by Higz on Oct 31, 2007 1:30 PM PDT up reply actions 0 recs
Yeah
God I hate athletes and their ridiculous salaries" comment. So don't try to change the subject.
And FYI, the Angels are on the low end of the ticket price scale.
by akathelorax on Oct 31, 2007 8:15 PM PDT up reply actions 0 recs
Top 5 payroll bottom 15 prices
by hauldog on Oct 31, 2007 2:23 PM PDT up reply actions 0 recs
That's great.
by Higz on Oct 31, 2007 2:50 PM PDT up reply actions 0 recs
I don't live in LA any longer
by anaheimisnotla on Nov 1, 2007 6:35 PM PDT up reply actions 0 recs
Sign him
Imagine Vlad, Bonds, and A-Rod. Jebus.
by george bush on Oct 31, 2007 11:19 AM PDT reply actions 0 recs
a rod
by blaqhalo on Oct 31, 2007 2:11 PM PDT up reply actions 0 recs
Los Angeles A-Rods of Anaheim?
The mid-revenue Padres strongly expect the Marlins to shop and trade third baseman Miguel Cabrera within five weeks.
*Disclaimer: Not sure why the insider information on San Diego's part.
Two potential benefits:
- No immediate increase in ticket prices.
- Immediate increase in Aramark portions.
by Bilko 420 on Oct 31, 2007 3:57 PM PDT reply actions 0 recs
A-Rod
by MH25 on Oct 31, 2007 4:08 PM PDT reply actions 0 recs
He is worth more
by hauldog on Oct 31, 2007 4:11 PM PDT up reply actions 0 recs
One thing about the math.
So if they are going to raise ticket prices 15% over last year as it is, then (in your example) they would need an ADDITIONAL 40% to cover ARod, equating to a total increase of 55%.
Conversely, with $26 million in payroll coming off the books, the Angels need only raise their payrool $4 million over 2007 to come up with a $30 million offer to ARod. By your example, that would put the "ARod Tax" at only 5%.
So, who would NOT want 54 home runs out of your 3B position in 2008 for only a 5% increase in ticket prices???
by Stirrups on Oct 31, 2007 4:29 PM PDT reply actions 0 recs
In 1984 I was involved with a group
In 1986 the Twins (Thanks to Bert Blyleven and Kirby Puckett) won the Series and their value skyrocketed to $100mm.
We never bought the team. It was sold to Carl Pohlad instead.
Steinbrenner bought the Yanks for $10mm from CBS in 1973. Forbes values them at over $1 billion today. The annual cash flow is irrelevant to Arte if he can win a coupla Series. The annual losses are just paraded around the press to make fans feel sorry for the owners and justify ticket prices.
by SocalAngelFaninOC on Oct 31, 2007 4:35 PM PDT reply actions 0 recs
The Mets won it in 1986
by Rev Halofan on Oct 31, 2007 5:02 PM PDT up reply actions 0 recs
Easy
by UK Halo on Oct 31, 2007 5:59 PM PDT reply actions 0 recs
Sounds good to me!
by HawaiiHaloFan35 on Oct 31, 2007 6:41 PM PDT reply actions 0 recs
Do it.
Screwing the Dodgers out of becoming relevant in baseball: $30 million dollars/yr
Kicking the Red Sox out of the playoffs with an Ex-Yankee who spoiled their game 4 sweep in the Fall Classic: Priceless
by atung on Oct 31, 2007 9:45 PM PDT reply actions 0 recs
How feasible
by thehasegawaexpress on Nov 1, 2007 2:11 AM PDT reply actions 0 recs
crusade
by blaqhalo on Nov 1, 2007 1:16 PM PDT up reply actions 0 recs
Ummmm
How about neutering?
by anaheimisnotla on Nov 1, 2007 6:38 PM PDT up reply actions 0 recs
neutering
by blaqhalo on Nov 1, 2007 6:48 PM PDT up reply actions 0 recs
sadly, it's also going to be hard for you to have
by retrohalo on Nov 1, 2007 7:38 PM PDT up reply actions 0 recs
please
by blaqhalo on Nov 1, 2007 7:46 PM PDT up reply actions 0 recs
you do realize that that's a genetic disorder?
by retrohalo on Nov 1, 2007 7:48 PM PDT up reply actions 0 recs
check
by blaqhalo on Nov 1, 2007 7:54 PM PDT up reply actions 0 recs
it's common sense, dude.
by retrohalo on Nov 1, 2007 7:55 PM PDT up reply actions 0 recs
3 balls
by blaqhalo on Nov 1, 2007 8:00 PM PDT up reply actions 0 recs
El Gordo
by The Spirit of Erstad on Nov 1, 2007 5:56 PM PDT reply actions 0 recs
schilling
by blaqhalo on Nov 1, 2007 6:33 PM PDT up reply actions 0 recs
No thx
Anybody interested in Schilling for one year? No
Crafty vet who can win in the postseason AND at Fenway? He's Done.
I'll take him over Saunders. No
Who's with me? Not me...
by anaheimisnotla on Nov 1, 2007 6:44 PM PDT up reply actions 0 recs
i'm against everything you wrote.
by retrohalo on Nov 1, 2007 7:40 PM PDT up reply actions 0 recs
Haha, yeah
by matt92130 on Nov 4, 2007 10:55 PM PST up reply actions 0 recs
MCab
by The Spirit of Erstad on Nov 2, 2007 9:18 AM PDT reply actions 0 recs
"Battling Boras"
"How does a team wanting to acquire Alex Rodriguez avoid giving a contract guaranteed to generate a severe case of buyer's remorse? The first thing to understand is that Boras' pie-in-the-sky projections are just that. In 2000, as we've discussed before, it was not the worst thing to overpay for what A-Rod might bring. In 2000..."
by G Abbes on Nov 2, 2007 10:23 AM PDT reply actions 0 recs
Evil Empire West?
by jimbo1 on Nov 2, 2007 10:39 AM PDT reply actions 0 recs
Spread their wealth?
or are you referencing Neckcar?
by hauldog on Nov 2, 2007 12:42 PM PDT up reply actions 0 recs
I can understand why some of you
by Omerta on Nov 2, 2007 11:14 AM PDT reply actions 0 recs

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