The previous years revenue?
2006-12-20 00:32:54 · 6 answers · asked by popular_bond 2 in Sports ➔ Baseball
How much money the owner wants to spend!!!!!
2006-12-20 12:15:05 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The answer is complicated, of course.
Most teams have a very good idea of how much money they will make in the coming season. Although ticket sales and merchadise sales (jerseys and hats and stuff) can vary from year to year, TV revenues do not. That is a contract. Addtionally, there is a revenue sharing agreement among the teams. So, teams that spend a ton of money on players' salaries (like the Yankees, Red Sox and Cubs) have to pay a "Luxury Tax" to the league. This money is doled out to teams that play is smaller cities (like Kansas City) where the TV revenue is not as high.
Further, the money a team needs to spend varies from year to year. Each team is looking to fill out their 25 man roster as best they can. Most of the players stay from the previous year and are under contract, so that is a known expense. The team must then fill their open roster spot with players from their Minor League system (these players are also under contract) or they will have to sign Free Agents. The Free Agent market varies from year to year. This off-season is a good one for the players, but not such a good one for the teams as average players are getting unusually high salaries.
Finally, teams are not just looking at next season when they plan. They are really looking at the next 5 years or so and planning on which players currently under contract they will want to extend after the contract expires, which players in their minor league system will be ready to play in the majors over the next couple of years, and which players on other teams will become free agents that they would like to have on their team. Factor in the ability to trade for players at any time and you begin to see why being a General Manager of a Major League Baseball team is among the most demanding jobs in sports.
2006-12-20 08:56:34 · answer #2 · answered by Waldeck 3 · 0⤊ 0⤋
It's arbitrary. Of course last year's revenue and this year's projections factor in - no one wants to spend more than they make, but it also depends on how much the owner wants to pocket. There's no set minimum an owner has to spend. Plus there's the minor leagues. An organization has to decide how much cash to put into that system versus the major league team.
2006-12-20 08:44:32 · answer #3 · answered by solarchem 2 · 0⤊ 0⤋
It's based on whatever the owner is willing to pay. Some owners, like Steinbrenner, are willing to pay whatever it takes. Others, like Pohlad of the Twins, base their payroll off the previous season's revenues. Pohlad is one of the richest owners in MLB, yes even more so than Steinbrenner, but he is too cheap to put some of his own money into his club. So, the budget is based on whatever the owner wants.
2006-12-20 14:11:56 · answer #4 · answered by Brad342 2 · 0⤊ 0⤋
I don't think so. I think it's from the current year's revenues although a team has a savings account.
2006-12-20 08:41:37 · answer #5 · answered by ? 6 · 0⤊ 0⤋
more than a million
2006-12-20 08:39:22 · answer #6 · answered by mariefel q 3 · 0⤊ 0⤋