I'm not sure that I agree with counting the cash received in trades as revenue. This is an operating statement, not a cash flow statement. Assuming that the Reds do not employ any kind of cutting edge capitalizing of their players as assets, I would make the credit to the partners' captial accounts. I suppose if you really wanted it in revenues, it could be loosely considered a gain on sale of assets.
I also didn't follow where the national tv revenue number was in that article.
It is also appropriate to make an annual amortization charge for deferred money, like Griffey's contract. Any kind of backloaded contract such as Jr.'s would be a candidate since the contract is designed to take advantage of NPV for cash flow purposes. These should be amortized an equal prorata portion per year over the term of the contract. Likewise, investment income should be recorded since the Reds are hopefully investing to help match the NPV of the deferred contracts when they come due.
I also agree that $13M is low for all front office, minor league, etc expenses. Considering the draft budget, signing bonuses, the minor league system, spring training, and the entire scouting and admin staff probably exceeds that total alone
Last edited by traderumor; 01-28-2004 at 02:39 PM.