Reader JJ had left me with some interesting questions as well. Here is what he asked:
"As payroll stands now, how much is Oakland spending? How much do they get of the league's revenue sharing? Is any of the money of what they get in revenue sharing used to increase the team payroll and better the team or are the A's owners just like the Devil Rays owners?"
Let me breakdown the questions one at a time.
Is any of the money of what they get in revenue sharing used to increase the team payroll and better the team or are the A's owners just like the Devil Rays owners?
There are a couple interesting things with the Oakland financial situation. One is from a 2007 Forbes magazine article and one is from a 2006 article I found. One thing that intrigues me, is that Oakland spent 53% of its revenue on the player's salaries. Oakland ranked 23rd in total revenue going into the 2007 season with 146 million. The New York Yankees clearly were first with over 300 million. The team payroll increases every year, just because of player contracts going up each year. Here are the full figures of the current team.
They aren't afraid of spending money, but their philosophy is to let the higher priced players go and build through their farm system, trades, and lower tier free agents that fit their scheme. So, basically they are a bit like the Devil Rays owners, but with their own twist. After all, they are spending a big amount of cash on their new stadium!
As payroll stands now, how much is Oakland spending?
Oakland ended the 2007 season spending just over $79 million on their payroll. It is hard to tell just how much they are going to be spending going into the 2008 season, depending on which direction they take with the team. As of now, Eric Chavez (11mil), Mark Kotsay (8mil), Mark Ellis (5mil), Bobby Crosby (3.5mil), Nick Swisher (3.5mil), Alan Embree (3mil), Rich Harden (4.5mil), and Dan Haren (4mil) make up most of the payroll. Those players right there equate to 42.5 million with several others due to make a big payday from arbitration. Joe Blanton and Huston Street are going to get the biggest pay raises if this happens. I would look for Blanton to make around 3 to 3.5 and Street to go up to around 2 to 2.5. If Oakland keeps Kiko Calero, Justin Duchscherer, Chad Gaudin, and Lenny Dinardo and they all win, then the payroll could be back up around the $70mil mark again.
It does help that guys like Travis Buck, Daric Barton, Jack Hannahan, Donnie Murphy, Danny Putnam, and Kurt Suzuki are still on their rookie contracts. Buck, Barton, and Suzuki are starters, while Hannahan and Murphy are going to big utility players. These players help off-set the costs of the higher paid players.
How much do they get of the league's revenue sharing?
I still haven't found a concrete figure as to how much they received, but I do know that in 2006 their value went up over 20% with what they received. So, lets just say they were worth 100 million to begin with. They then received approximately 20 million on top of that. It really does help the lower market teams, while the Yankees poured in 77 million to the sharing program that same year. I would assume that those numbers went up on both ends, just because of inflation every year.
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Comments
Great article... very informative!
I admire the A's as a team as they make the most of what they have and are almost always in the playoffs. Billy Beane just uses the money he has very efficiently. I wish he was here in Philadelphia instead of brainless Gillick. I doubt he would have traded away lead-off man in the (making Michael Bourne for a gimp with questionable fortitude like Brad Lidge. I don't see Beane as being on the bad end of many trades.
As of now, is Eric Chavez the highest paid player on the team? What of the A's farm system... are there any promising prospects, esp. pitchers?
Where does 79 million rank in terms of team payroll last year? (I'm assuming the Yankees and the Red Sox are #1 and #2 in spending).
And of the 53 percent of the revenue spent on player salaries, where does that rank in relation to other teams? (I have nothing to compare it to, but I'm guessing it's a little low).
And when will the A's new stadium be open? Has there been an increase in season ticket holders with a new stadium on the way?
Sorry for all the questions...good information tends to lead to more of them.)
Nice work here. This is the best post you've written.