The Reds 2003 Revenue and Expenses
A few days ago Krusty asked about GAB revenues. Itís a subject we all discuss from time to time, and one that I know is dear to REDREAD, myself, and others. Unfortunately, these discussion usually suffer from lack of hard data.
So, I decided to try to make a definitive list of all of the Redsí sources of revenue. Then I attempted to find out exactly how much revenue was derived from each source. With some effort, I was able to find good numbers for all but two of the sources, which I have good estimates for.
Then I did the same for expenses. Iíve linked to all of my references, when possible, and explained my system when this was not possible.
So here, then, is my attempt to settle the question of how much the Reds made in 2003.
* Neither the Reds nor their concessionaire, Sportservice, reveals concession figures. However, under their old lease, the team was required to pay the county 10% of the gross from concession sales. The 1998 payment indicated concession sales of $11,000,000. This works out to $6.13 in concession sales for each of the 1,793,649 men, women, and children through the gate that year. Inflation adjustments take that $6.13 to $7.00 per person for 2003. I have ignored other factors, like the greater availability of expensive liquors, wines, and foods in GAB, and the expensive catering options available, making this estimate a lowball one.
2003 LOCAL REVENUE SOURCES
Ticket Sales $17.53 x 2,355,259 =$41,287,690
Parking $8 x 576 x 81 =$373,248
Local Cable =$5,000,000
Local Radio =$5,400,000
Stadium Naming =$2,500,000
Founders Suites 8 x $120,000 =$960,000
Zone 2 Suites 26 x $85,000 =$2,210,000
Zone 3 Suites 23 x $50,000 =$1,150,000
Riverfront Club Memberships** 500 x $500 =$250,000**
Scorecards $1 x 10% of attendance =$235,526
Scoreboard Messages 30 x $35 x81 =$85,050
In-Stadium Advertising*** =$8,000,000***
Spring Training Income =$1,000,000
2003 NATIONAL REVENUE SOURCES
National TV =$13,333,333
Revenue Sharing =$15,800,000
MLB Properties Sharing =$4,600,000
2003 GROSS REVENUE
Administration, Operations, Player Development# =$13,000,000#
Ballpark Maintenance =$9,000,000
Ballpark Rent =$2,500,000
Merchandise Costs =$3,000,000
Player Payroll =$63,062,016
2003 REVENUE MINUS EXPENSES
** Iím sure GAC said his connection paid $500 for a membership to the Riverfront Club, but I canít find that post in our archives.
*** For obvious reasons, it is very difficult to find information about in-stadium advertising revenue. However, we do know that the team sold out all of its advertising space. And we also know from a suit against the Mets that they underreported their advertising revenue by $13.5 million, which suggests that this figure, combined with whatever amount was reported, would give the Mets something like $15-20 million here. Finally, the Cleveland Indians made $8.8 million on signs and ads in 1997. Since the Metsí number doesnít tell us much, and since Cleveland is a Midwestern city with a new park (sort of), I used their number, but depressed it somewhat. Yes, their number is six years old, but Cleveland is a bigger market, their team was more successful at the time, and the economy was booming. By contrast, John Allen says he may have underpriced GAB advertising. Hence my conservative number of $8 million.
# I heard this number a few months ago and etched it in my brain. Having previously never heard how much the team spends on the FO, minors, etc. I found this piece of data interesting. But now I canít find a cite. The Brewers claim to spend about $30 million here, FWIW.