• Do the Tigers really have that much more money than the Twins?

    This is back-of-the-napkin type math based on a lot of assumption so please, do not attempt to cite the concluded numbers as final. They are, in essence, an educated guess that is founded from bits and pieces of available public information. But letís use it to attempt to figure out why the Tigers are able to make it rain on the free agent market while the Twins are left counting pennies.

    The Tigers recently signed Torii Hunter to a two-year, $26 million deal. With that addition, Detroit now has five players under contract for 2013 who are scheduled to make $10 million or more for a grand total of $81 million. Plus, they have not completely ruled out extending pitcher Anibal Sanchez, who is seeking roughly $15 million per year. How is it that the Tigers are spending small principalities worth of money while the Twins stand idly by and target the one or two-year bargains?

    Detroit made approximately $93.93M at the gate last year (based on attendance multiplied by the $31 ticket price average sold). The Twins, on the other hand, made $91.74M (averaging $33 per ticket sold). Thatís without taking into consideration advertising the stadium, suites, luxury boxes, concessions (which can range from $3.4 million to $20 million depending on the attendance and offerings). Assuming the Tigers were one of the teams to make the higher end of that based on their competitiveness and relatively new stadium, with a payroll of $133 million in 2012, they likely came in $10 million short. Comparatively, the Twins who also likely made the higher end of the stadium-generated revenue from suites and concessions, could have potentially made $10 million in profits (without taking in to consideration the operating costs, farm system expenses, etc, etc).

    Then there is the benefits of being a playoff team. According to research done by BizofBaseball.comís Maury Brown, teams can stand to make an average of $1 to $2 million per game in the playoffs. If we split the difference, the Tigers could have made approximately $19.5 million for the 13 games played in October. In addition to that, Brown notes, the real windfall is the revenue generated for the following year as the club receives additional season ticket requests, sponsorships and are able to leverage that if local TV/radio contracts are up in the air. With the Twins not making it into even playoff contention for the second straight season, undoubtedly season ticket sales and sponsorship requests are down. The Tigers can plan for additional revenues whereas the Twins will likely brace for some fallout.

    The biggest difference maker between the two markets is the size of the TV contracts: The Tigers get an estimated $50M per season from their Fox Sports affiliate while the Twins are getting $29M per season.



    So, rather than having an operating loss as described above, the Tigers have somewhere closer to a $60 million profit thanks to the playoffs and broadcast rights. The Twins, meanwhile, could have somewhere in the ballpark of $39 million Ė a difference of $21 million in favor of the Tigers. Whatís more, both teams, starting in 2014, will receive $50 million from the MLB central fund because of the new television contracts with ESPN and TBS. This added bonus certainly is taken into consideration when teams and agents are projecting long-term contracts.

    In the end, the Tigers could be poised to spend roughly $110 million (with some operating expenses removed) in 2014 while the Twins will be trying to compete with $89 million (with operating costs and what is certain to be a decline in ticket/stadium-based revenue).

    While it is not at the level as Detroit, the Twins still have plenty of money to spend for 2013 (particularly when you consider how much they have dropped off their payroll from the 2012 season) so they should not be crying poor. Sure, the ownership may be pocketing this additional funds Ė and thatís their prerogative Ė but, based on my outsider calculations, there appears to be plenty of revenue to add a few of the gameís top free agentsÖif they wanted to.
    This article was originally published in blog: Do the Tigers really have that much more money than the Twins? started by Parker Hageman
    Comments 64 Comments
    1. Riverbrian's Avatar
      Riverbrian -
      It's a little slow on the Twins front so...
      My Rankings

      Neil Young

      6. Cortez the Killer
      5. Old Man
      4. Mr. Soul
      3. Comes a Time
      2. Unknown Legend
      1. Down by the River

      Tragically Hip

      6. Little Bones
      5. At the 100th Meridian
      4. Three Pistols
      3. Courage
      2. Inevitability of Death
      1. Locked in the Trunk of a car(where the copters won't spot it...brilliant... I still don't understand the conquistador beginning bit. )

      Zeppelin

      6. Ten Years Gone
      5. Bring it on Home
      4. When the Levee Breaks
      3. The Rain Song
      2. Babe I'm Gonna Leave You
      1. Since I've Been Loving You
    1. twinsnorth49's Avatar
      twinsnorth49 -
      Quote Originally Posted by Riverbrian View Post
      It's a little slow on the Twins front so...
      My Rankings

      Neil Young

      6. Cortez the Killer
      5. Old Man
      4. Mr. Soul
      3. Comes a Time
      2. Unknown Legend
      1. Down by the River

      Tragically Hip

      6. Little Bones
      5. At the 100th Meridian
      4. Three Pistols
      3. Courage
      2. Inevitability of Death
      1. Locked in the Trunk of a car(where the copters won't spot it...brilliant... I still don't understand the conquistador beginning bit. )

      Zeppelin

      6. Ten Years Gone
      5. Bring it on Home
      4. When the Levee Breaks
      3. The Rain Song
      2. Babe I'm Gonna Leave You
      1. Since I've Been Loving You
      Shark metaphor where the shark is the trunk and the conquistador is the killer or the Shark is the killer and the conquistador is Laporte......or it means absolutely nothing, except that sharks eat a lot of junk and because they go through a tonne of teeth, it's very hard to tell how old they are. Not sure what that has to do with the FLQ.

      When the hell are those Winter meetings again?
    1. Riverbrian's Avatar
      Riverbrian -
      Quote Originally Posted by twinsnorth49 View Post
      Quote Originally Posted by Riverbrian View Post
      It's a little slow on the Twins front so...
      My Rankings

      Neil Young

      6. Cortez the Killer
      5. Old Man
      4. Mr. Soul
      3. Comes a Time
      2. Unknown Legend
      1. Down by the River

      Tragically Hip

      6. Little Bones
      5. At the 100th Meridian
      4. Three Pistols
      3. Courage
      2. Inevitability of Death
      1. Locked in the Trunk of a car(where the copters won't spot it...brilliant... I still don't understand the conquistador beginning bit. )

      Zeppelin

      6. Ten Years Gone
      5. Bring it on Home
      4. When the Levee Breaks
      3. The Rain Song
      2. Babe I'm Gonna Leave You
      1. Since I've Been Loving You
      Shark metaphor where the shark is the trunk and the conquistador is the killer or the Shark is the killer and the conquistador is Laporte......or it means absolutely nothing, except that sharks eat a lot of junk and because they go through a tonne of teeth, it's very hard to tell how old they are. Not sure what that has to do with the FLQ.

      When the hell are those Winter meetings again?
      I read that... And I also read that Gordie was quoted as saying the song is a metaphor for a smothering relationship. However... It's Gord... He would certainly be a strong possibility for throwing out a red herring or two. So I go back to... I'm not sure... The thing about hip songs is that you can certainly pull your own interpretations from them and make it work. Brilliant Band!!!

      I got to hang around with them backstage during the Day for Night tour. Dan Aykroyd was back stage just hanging around as well. The band was very nice and personable. Gord was very dark on the other hand. He really didn't want to be there working the room. I just said Hi and told him that this backstage political stuff must be a pain. He nodded and said yes it is. I then left him alone.

      Back to Baseball... Hey North your South... I think the Twins should try and sign more Canadien players... What'd think about that?
    1. twinsnorth49's Avatar
      twinsnorth49 -
      Quote Originally Posted by Riverbrian View Post
      Quote Originally Posted by twinsnorth49 View Post
      Quote Originally Posted by Riverbrian View Post
      It's a little slow on the Twins front so...
      My Rankings

      Neil Young

      6. Cortez the Killer
      5. Old Man
      4. Mr. Soul
      3. Comes a Time
      2. Unknown Legend
      1. Down by the River

      Tragically Hip

      6. Little Bones
      5. At the 100th Meridian
      4. Three Pistols
      3. Courage
      2. Inevitability of Death
      1. Locked in the Trunk of a car(where the copters won't spot it...brilliant... I still don't understand the conquistador beginning bit. )

      Zeppelin

      6. Ten Years Gone
      5. Bring it on Home
      4. When the Levee Breaks
      3. The Rain Song
      2. Babe I'm Gonna Leave You
      1. Since I've Been Loving You
      Shark metaphor where the shark is the trunk and the conquistador is the killer or the Shark is the killer and the conquistador is Laporte......or it means absolutely nothing, except that sharks eat a lot of junk and because they go through a tonne of teeth, it's very hard to tell how old they are. Not sure what that has to do with the FLQ.

      When the hell are those Winter meetings again?
      I read that... And I also read that Gordie was quoted as saying the song is a metaphor for a smothering relationship. However... It's Gord... He would certainly be a strong possibility for throwing out a red herring or two. So I go back to... I'm not sure... The thing about hip songs is that you can certainly pull your own interpretations from them and make it work. Brilliant Band!!!

      I got to hang around with them backstage during the Day for Night tour. Dan Aykroyd was back stage just hanging around as well. The band was very nice and personable. Gord was very dark on the other hand. He really didn't want to be there working the room. I just said Hi and told him that this backstage political stuff must be a pain. He nodded and said yes it is. I then left him alone.

      Back to Baseball... Hey North your South... I think the Twins should try and sign more Canadien players... What'd think about that?
      It would be great if more Canadians played for the Twins, I'm a huge homer, but they gotta be able to play. It's hard on the psyche though, in true Canadian fashion I tend to view it as a personal failure every time Diamond or Morneau put up a stinker, I'm not sure I could take anymore. I love it when they're playing well though, it's an added pleasure as a Twins fan, my personal highlight from last season was being right behind home plate when Morneau jacked two, including the walk off against the Tribe in September. Going to be sad to see him go soon.
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