Anonymous
Anonymous asked in SportsBaseball · 1 decade ago

How do MLB teams get money for payroll?

I understand they get a percentage of ticket sales and licensed merchandise sales, that's a given, but why, for example do the Yankees have nearly $199 million to spend on payroll, when no other team except the Red Sox even comes close. And how can it be fair when a team like Florida only has $15 million to spend on payroll. (I'm not a Florida fan, I'm a Tribe fan, just trying to understand how all this works).

10 Answers

Relevance
  • 1 decade ago
    Favorite Answer

    Go to a game and wait in line to buy some food. You will then realize where the money comes from. It costs hundreds of dollars for a family to get ok/bad seats and buy food. Now add the corporate sponsors spending millions for seats and ESPN and FOX paying Millions for broadcast rights. Times 81 home games... and wow... that could easy be near a billion dollars... i didnt even mention the memorabilia and other promotions put on by the team. Oh yeah... look at the ads all around the staium... the out field walls, scoreboards, etc... each costs millions of dollars throughout the season for sponsors. The truth is, Billions of dollars is being spent on Major League Baseball.

    • Login to reply the answers
  • 1 decade ago

    Baseball is the only sport where the owner can actually throw in a portion of his own money to pay for the team's salary. However, there are many other avenues that allow a team to have a higher salary than others. For example the Yankees have their own tv network that makes them millions of dollars a year. At the same time the revenue that the Yankees bring it through merchandise and ticket sales is uncomparable in baseball today. Let's not forget that Steinbrenner is rolling with more money than most owners could ever hope to have. When you add all of these factors up you will realize that baseball is one of the few sports today that supports the rich and lets the poor go down in flames. Yes the Major leagues runs revenue sharing but we all know the only true program that works is a salary cap which the players in the major leagues will never agree to.

    • Login to reply the answers
  • 1 decade ago

    Money comes from the team owner, (or the corporation that runs it for him) Revenues, (income) are generated from ticket sales, sponsorships, percentage of food and souvenier sales, etc.

    There are teams in a large market. That is, in an area where there will be a lot of people supporting the team and buying lots of tickets, for every game. Smaller market (for example, in a smaller city, or a city not near many other cities) teams will not have the same size fan base. Fewer tickets, less money coming in.

    Winning teams also generate more ticket sales and can ask for more money from the networks who want to broascast their games. Again, more money.

    Some teams are perennial favorites, who may have both of the above mentioned advantages, or are just well known enough that their games and their branded products are in high demand.

    Thats one of the reasons salary caps were instituted in some sports. The league owners realize that they need to make the game more competetive to keep fans interested. Salary caps are a way to prevent a team owner from pouring an unlimited amount of money into salaries. Wthout the caps, the team with the deepest pockets could buy the best players and no one else could win.

    • Login to reply the answers
  • 1 decade ago

    The Yankees have their own cable network, and that's where the largest part of their income comes from.

    Plus they get the most money from having their games broadcast on national TV.

    The Yankees actually spend more on their players than their ticket sales bring in, but they are still more profitable than any other team because of licensing and TV money.

    • Login to reply the answers
  • How do you think about the answers? You can sign in to vote the answer.
  • 1 decade ago

    LOCAL television revenue. Huge difference between local TV money (Since the Yankees and Sox both OWN their own TV Networks), and places like Florida who get pennies on the dollar compared to the big markets.

    • Login to reply the answers
  • 1 decade ago

    You forgot to mention the profit they make from beer sales at the stadium!! 1 beer at Yankee stadium costs more than a 6 pack at 7-11!!

    Source(s): Been ripped off enough at the ballpark
    • Login to reply the answers
  • 1 decade ago

    Yeah.. teams get most of thier money from thier television network deals. Thats ones of the reasons why wins= more money because if the team is winning then more people will watch the games on tv/radio or go to the park.

    • Login to reply the answers
  • 1 decade ago

    All I know is that they get it from ticket sales and sales that happen in the place where they play

    • Login to reply the answers
  • Anonymous
    1 decade ago

    george steinbrenners luxury tax payments,and thru profit sharing, florida recieved more money from profit sharing than they spent on their payroll!now how many teams say they are losing money!

    • Login to reply the answers
  • Anonymous
    1 decade ago

    a lot of the owners have other buisnesses... mike illitch of the detroit tigers started little cesears pizza. before he bought the team, tom monahan owned the team. he started dominos pizza. ever eaten either of those two pizzas? bet'cha have.

    go tigers.

    • Login to reply the answers
Still have questions? Get your answers by asking now.