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SBD/December 17, 2012/Franchises
In Light Of Near-Record Spending, Dodgers' New Business Model Examined
Published December 17, 2012
KASTEN'S CONCLUSION: Dodgers President & CEO Stan Kasten said, "What's really happening here is the building of a franchise. ... Stadium infrastructure, organizational infrastructure -- those are the critical things on which long-term success is built." Kasten: "We're going to be using all the tools that we can, not just spending money" (N.Y. TIMES, 12/15). Kasten added, "I think when we took over we had about 17,000 season ticket-holders, which may have been an all-time low, and we're up around 25,000 right now. Our TV ratings were up the second half of last season and we're all just looking forward to what the season brings" (BOSTON GLOBE, 12/16). ESPN L.A.'s Mark Saxon wrote the Dodgers will "have a payroll exceeding $230 million in 2013, easily a major league record." Dodgers GM Ned Colletti said that the high rate of spending is a "result of artificially low payrolls in the final seasons" under former Dodgers owner Frank McCourt. Colletti said, "Our payroll a year ago was $90 (million). We're up over $200 (million) now. If you added it all up, it might be over 300 (million) over two years. Had we been at 150 last year and 150 this year, nobody would be saying a word, right?" (ESPNLA.com, 12/14).