|01-28-2004, 12:03 PM||#10|
You know his story
Join Date: Nov 2000
Location: Norfolk, VA
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.
2003 LOCAL REVENUE SOURCES Ticket Sales $17.53 x 2,355,259 =$41,287,690 Parking $8 x 576 x 81 =$373,248 Concessions* =$16,486,813* 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 $118,671,660 2003 EXPENSES Administration, Operations, Player Development# =$13,000,000# Ballpark Maintenance =$9,000,000 Ballpark Rent =$2,500,000 Marketing =$3,000,000 Merchandise Costs =$3,000,000 Player Payroll =$63,062,016 2003 EXPENSES $93,562,016 2003 REVENUE MINUS EXPENSES 25,109,644
** 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.
Makes all the routine posts.
Last edited by Redsland; 01-28-2004 at 05:32 PM.