Profits To Drop Sharply For MSG Media Chinese Firm Could Buy Infront Media Dodgers Owe More Than $26M In Luxury Tax Selig Named MLB Commissioner Emeritus Marciani Out As MLB VP/National Sales St. Pete Denies Rays' Ballpark Search Deal Nike Reports Relatively Strong Q2 Angels, Red Sox Eliminate Pension Plans MLB Franchise Notes Cuba Decision Could Impact MLB
THE BIG BUSINESS OF BUYING AND SELLING MINOR LEAGUE CLUBS
Published October 27, 1997
The financial benefits of owning a minor league baseball franchise was examined by Roy Furchgott of the N.Y. TIMES, who wrote, "team owners warn that would-be baseball moguls should take a long look before stepping up to the plate." St. Paul Saints Owner Mike Veeck: "It's possible to make money, and it's also possible to lose a lot very quickly." Furchgott wrote that "many team owners have done well on their investment, not necessarily because of ticket sales but because resale values have skyrocketed." Class A Northwest League President Robert Richmond: "A team that cost $350,000 just 10 years ago costs $8 million today." Furchgott reported that the price of a team not affiliated with MLB "can run as low as $25,000," while AAA teams "have asking prices of up to" $12M. But costs for owners will increase, as the recent PBA between the NAPBL and MLB "shifts more costs to the minors" next season, including paying for more than 200 umpires, uniform costs, and half the cost of balls and bats (Roy Furchgott, N.Y. TIMES, 10/26).