12-13-2018, 11:06 AM
(12-05-2018, 12:58 PM)Hoofhearted Wrote: Reds are now worth 1 billion. Forbes breaks down the Reds $1 billion in value this way: 44% from the worth of the sport overall, 30% from the city of Cincinnati and surrounding area market size, 18% from the stadium and just 8% depends on the Reds specific brand.
The Reds also got a new deal with FSO. Since Bob has bought this team, he's almost doubled his investment from 2006.
Those teams values do not yet account for the impact of legalized gambling. If they cannot spend more than 150 million on payroll, they I don't see when we ever will.
There are flaws in your concept, and attendance is important.
First, you are basing everything on Forbes, who isn't always right.
Second, you are going on estimated net worth, which isn't the same as cash on hand.
So lets start with The Yankees, because in real money, there is the Yankees and then everybody else. Now the Yankees have attendance, the great TV contract, the marketing, The Championship History, The New York Yankees have it all.
So after the Yankees, where do you think the Reds are. Certainly not in the top 10. Easily the bottom half of baseball. The bottom 15. The small market teams.
Yes, the Reds have a Fox Ohio TV deal, but they won't have it for long if nobody is watching. TV rating have to be very low for the last place Reds. Commercial time will become cheaper and cheaper if Reds stay in last, because very few people are watching. Reds TV ratings are getting lower than reruns of Gilligan's Island. Companies are not going to pay big commercial prices for TV ads nobody will see. Fox will lose money and end result will be next Reds TV contract will be a lot less money for Reds.
If 90% of the seats are empty, you can bet nobody is watching on TV either. Poor attendance is a sign of a franchise in trouble, be it baseball, basketball, whoever. Poor attendance teams often fold or move to another city. Even in the TV revenue sharing NFL, no owner wants poor attendance. Mike Brown doesn't have to share the attendance money, so the more seats sold, that is real money, not estimated hypothetical net worth. Look at all the franchises that have folded or moved in sports over poor attendance.
So Fan Attendance does mean a lot to these sports franchises. The big cities don't really have to worry about low attendance. The smaller cities like Cincinnati. Look for the Rays to move out of St Petersburg to the mainland of Tampa because they can't afford the low attendance in St Pete. If attendance means nothing, the Reds would not have fired everybody. They have not brought in a new manager and a whole new coaching staff for no reason. Last Place, Poor Attendance and Low TV Ratings are Killing the Cincinnati Reds franchise. They have milked the Pete Rose events for every last drop and the cow is dry.
The good news is the Reds are making changes. Bell looks like a good hire and I think even Buddy Bell is on Reds Front Office staff. Joe Morgan and Barry Larkin are on Reds staff. These are indeed baseball people that could turn this last place franchise around. Even Lou Piniella is on staff. Reds could win more which would make attendance rise and TV ratings go up, and as Yogi Berra said, that is money which is as good as cash.
Lets also add Sports Service or whoever Reds now have selling beer, pop, hot dogs, bobble heads, you name it. The bars and restaurants inside GABP. Attendance means everything to them. Also to the parking lots, the restaurants and things in Cincy and Covington. Poor attendance means these businesses lay off workers and eventually fold. Often a franchise with poor attendance asking for tax payers to buy a new stadium, those tax payers say Adios Amigo. Don't let the door hit you in your corporate assets.
Again, the GOOD NEWS is signs of life in Reds off season moves. Hey, I would rather watch Reds in Fox Ohio since it's part of my TV package anyway. However if 2019 is like the last few years, reruns of Soupy Sales or the guy selling Flex Seal or Dick Van Dyke doing Tai Ching even start looking better TV than the Reds losing every game. Every time I turn on the Reds, they are losing, so I change the channel. The Reds seem to be trying to put up more wins this year. That is the Good News.
