JR says payroll is at 125 million

[chisoxfan09]

I'm not sure if you are being sarcastic or not, but in past discussions of ticket sales, some people have tended to think of revenue as profit.

 

Profits or net income generally imply total revenue minus total expenses in a given period.

 

[Ranger]

Winning games doesn't affect the first games of the year. That is up to the fans.

 

 

That's absurd. It's on the team to win early. The fans will show up at the beginning of the season no matter what, as they always do. If you want them to continue to come, you better win.

 

Games from June through September are the games the results on the field are responsible for getting people there. In Apr/May, southsider is right, it's up to the fans to respond to the offseason. Many of the early-season tickets are bought before the season begins. It's not accurate that fans "always" show up early on. That's not true. They show up for opening day, and there's almost always a dramatic decline in the games that follow.

 

Sox fans have not, historically, responded quickly to success. They didn't start selling out games until late August 2005, and they were in first place by 12 games in June.

[Milkman delivers]

Games from June through September are the games the results on the field are responsible for getting people there. In Apr/May, southsider is right, it's up to the fans to respond to the offseason. Many of the early-season tickets are bought before the season begins. It's not accurate that fans "always" show up early on. That's not true. They show up for opening day, and there's almost always a dramatic decline in the games that follow.

 

Sox fans have not, historically, responded quickly to success. They didn't start selling out games until late August 2005, and they were in first place by 12 games in June.

 

Yeah, we already went over the attendance early in the season. I admitted that I was mistaken.

 

But really, we are going to have to agree to disagree. I don't think fans need to show up until the team proves that it is any good.

[Ranger]

Yeah, we already went over the attendance early in the season. I admitted that I was mistaken.

 

But really, we are going to have to agree to disagree. I don't think fans need to show up until the team proves that it is any good.

 

That's fine. But the result will be less money for them to play with and less chance of them spending large during an offseason, as is how the business works.

[greg775]

i dont think its all just about success. its kind of..wrong , i guess, that the sox say how more fans need to go or go when the team wins but its not exactly the cheapest thing to go to. i went to 6 games last year but its just me and my husband. but for a family of, say 4, its expensive. bleachers at 38 a person and parking, thats 175 dollars. and thats not including drinks,food,etc. so its not exactly that easy to say hey lets go to a sox game, especially not multiple times a year.

 

This is a great thread. You never hear these kind of stories.

I pity you guys cause there was a time baseball was very very cheap to go to. And it was still entertaining white sox baseball many of those years.

There was no reason for this wild escalation of salaries and ticket prices and parking except for owners' greed.

Unfortunately now it's way too expensive for many hard working southsiders to go to games.

Edited January 27, 2011 by greg775

[Dick Allen]

Games from June through September are the games the results on the field are responsible for getting people there. In Apr/May, southsider is right, it's up to the fans to respond to the offseason. Many of the early-season tickets are bought before the season begins. It's not accurate that fans "always" show up early on. That's not true. They show up for opening day, and there's almost always a dramatic decline in the games that follow.

 

Sox fans have not, historically, responded quickly to success. They didn't start selling out games until late August 2005, and they were in first place by 12 games in June.

April and May games have historically seen rather low attendance due to school and weather. Even the Cubs are gearing their 13 game plan trying to get people to buy April and May games. Why is some man or woman supposed to commit $200 to a game when there is a decent chance it could be 35 degrees or a delay that will get their kids home at 1 AM with school the next day. The only time the White Sox had stacked crowds throughout April and May was 2006, and we know why. Walk up sales are what can help the Sox. They not only need to play well, they need the weather to cooperate. The fans respond to the offseason with a bump in season tickets and Ozzie plans and they buy games in the summer months.

 

 

 

 

[Iwritecode]

You're missing the other big money streams...and there's a lot of them at this point. Revenue Sharing dollars (i.e. DirecTV extra innings, merch sales) totaled over $13 million a team last year, and has been skyrocketing. Another big one is the TV and radio contracts...which by some reports run upwards of $400k a game, to the point that they'd total >$50 million a year. Then you have the advertising contracts...which are worth on the order of $5 million a year just for the naming rights, plus all the ads around the facilities.

 

Also parking. IIRC, the Sox own the lots themselves.

 

The only time the White Sox had stacked crowds throughout April and May was 2006, and we know why.

 

That's exactly why sustained success is necessary. Win the division 2 or 3 years in a row and you'll see the attendance rise.

Edited January 27, 2011 by Iwritecode

[ptatc]

This is a great thread. You never hear these kind of stories.

I pity you guys cause there was a time baseball was very very cheap to go to. And it was still entertaining white sox baseball many of those years.

There was no reason for this wild escalation of salaries and ticket prices and parking except for owners' greed.

Unfortunately now it's way too expensive for many hard working southsiders to go to games.

 

I wouldn't put it all on the owners. The players and the union had something to do with demands as well.

 

Professional sports is really the only industry where the payroll takes up around 60% of the gross revenue.

 

The owners are greedy but don't leave out the players.

 

[LittleHurt05]

This is a great thread. You never hear these kind of stories.

I pity you guys cause there was a time baseball was very very cheap to go to. And it was still entertaining white sox baseball many of those years.

There was no reason for this wild escalation of salaries and ticket prices and parking except for owners' greed.

Unfortunately now it's way too expensive for many hard working southsiders to go to games.

 

There are still are enough people and/or corporations that can afford to go that lets the owners keep the prices where they are. The fact is people still go, so they don't have a reason to lower them. It sucks for a lot of people that can't but in the end its still a business.

[Realfan]

There are still are enough people and/or corporations that can afford to go that lets the owners keep the prices where they are. The fact is people still go, so they don't have a reason to lower them. It sucks for a lot of people that can't but in the end its still a business.

 

 

I might also add that a Sox game outing (family of four) is much, much cheaper than a Bears, Bulls or Hawks game. I know that it's still not cheap on a relative basis but I do think that by using Stub Hub and maybe being a little creative with the calendar (don't aim for just Saturday/Sunday games), one can get his/her family to the games for a reasonable price all in. Of course, you have to want to be there to rationalize the expenditure. I have found my trips to the ballpark with my family to be well worthwhile - great baseball and more importantly, great memories with my wife and kids.

[Milkman delivers]

April and May games have historically seen rather low attendance due to school and weather. Even the Cubs are gearing their 13 game plan trying to get people to buy April and May games. Why is some man or woman supposed to commit $200 to a game when there is a decent chance it could be 35 degrees or a delay that will get their kids home at 1 AM with school the next day. The only time the White Sox had stacked crowds throughout April and May was 2006, and we know why. Walk up sales are what can help the Sox. They not only need to play well, they need the weather to cooperate. The fans respond to the offseason with a bump in season tickets and Ozzie plans and they buy games in the summer months.

 

That's exactly why sustained success is necessary. Win the division 2 or 3 years in a row and you'll see the attendance rise.

 

These guys know what's up.

[Ranger]

April and May games have historically seen rather low attendance due to school and weather. Even the Cubs are gearing their 13 game plan trying to get people to buy April and May games. Why is some man or woman supposed to commit $200 to a game when there is a decent chance it could be 35 degrees or a delay that will get their kids home at 1 AM with school the next day. The only time the White Sox had stacked crowds throughout April and May was 2006, and we know why. Walk up sales are what can help the Sox. They not only need to play well, they need the weather to cooperate. The fans respond to the offseason with a bump in season tickets and Ozzie plans and they buy games in the summer months.

 

But, like I said, they also need offseason sales on individual games to be good. Trust me on that. Most people don't buy individual tickets for mid-to-late season games, unless it's for the Cubs. Of course, the previous season usually helps the next. However, the first couple of weeks of the season, it's impossible to tell what kind of team it will be for the full season. That's why I'm hoping people don't wait to "see what happnes" in that first few weeks before they start buying tickets.

 

Mainly, the call from the fans has been: spend the money, put the team on the field, and we'll show up. That will have to prove to be true early on.

[Dick Allen]

But, like I said, they also need offseason sales on individual games to be good. Trust me on that. Most people don't buy individual tickets for mid-to-late season games, unless it's for the Cubs. Of course, the previous season usually helps the next. However, the first couple of weeks of the season, it's impossible to tell what kind of team it will be for the full season. That's why I'm hoping people don't wait to "see what happnes" in that first few weeks before they start buying tickets.

 

Mainly, the call from the fans has been: spend the money, put the team on the field, and we'll show up. That will have to prove to be true early on.

I understand that, but there is a reason April and May games don't get the premiere or premium tags games later in the season get hung with. Think about it. If you had a couple of kids and had a budget of 2-3 games per season, when tickets went on sale, are you going to buy tickets for a Saturday afternoon in April or a Wednesday in early May, or do you pick the June and July games?

 

I'd be willing to bet since the strike over 16 seasons ago, the Sox haven't had many non opening day April and at least early May games with advanced sales of at least 30k except for 2006. The first few weeks of the season depend on the team playing decently and weather. If the forecast calls for it to be 35 and the Sox are 1-4 on the Friday after opening day, you're going to see a lot of green. If its 65 and the Sox are 4-1, there will be a pretty decent crowd.

[joeynach]

I understand that, but there is a reason April and May games don't get the premiere or premium tags games later in the season get hung with. Think about it. If you had a couple of kids and had a budget of 2-3 games per season, when tickets went on sale, are you going to buy tickets for a Saturday afternoon in April or a Wednesday in early May, or do you pick the June and July games?

 

I'd be willing to bet since the strike over 16 seasons ago, the Sox haven't had many non opening day April and at least early May games with advanced sales of at least 30k except for 2006. The first few weeks of the season depend on the team playing decently and weather. If the forecast calls for it to be 35 and the Sox are 1-4 on the Friday after opening day, you're going to see a lot of green. If its 65 and the Sox are 4-1, there will be a pretty decent crowd.

 

Isnt that my point. If you know April/May, specifically weekday ticket sales usually lag then get creative. There is no doubt that most summer games and weekend games will see a bump in attendance this year but why not some April/May or weekday deals. You can do 2 for 1's, dollar hot dogs in the UD, half price bleacher tix on April day games, etc. That would at least help alleviate the dependence on weather or a quick start for the team in terms of securing ticket sales in April/May.

[chisoxfan09]

Good article up by Mark Gonzalez. JR still mentioning payroll and how the early ticket sales haven't really spiked with the "All In" approach. But it is still early days and if they start fast out of the gate he hope to draw 2.6-2.8 million for the year to offset the payroll increases.

 

OT - Is it me or has JR been more vocal this year about both his teams (Bulls/Sox) than previous years? I could swear I have seen more article quoting him that in recent years.

 

Link: http://www.chicagotribune.com/sports/baseb...0,6471672.story

 

Article:

 

A stronger commitment to player payroll and resources hasn't translated to a spike in season ticket sales according to Jerry Reinsdorf.

 

Nevertheless, the White Sox chairman is hopeful they will avoid the sluggish starts that hampered them the last two seasons.

 

"Our fans are optimistic and enthusiastic," Reinsdorf told beat writers Wednesday. "They want to see it out on the field. It's important we get off to a good start."

 

But Reinsdorf isn't begging fans for their financial trust.

 

"We put the risk on ourselves," said Reinsdorf, who decided committing payroll to winning now was wiser than trading talent and going young because there is no guarantee those moves would make them better in two or three years.

 

"We're spending the money. We never expected people to go wild and buy tickets like mad. We know we have to prove we have a team worthy of winning the division. If we do, we'll draw better. Last year's attendance (2.28 million) was the lowest in a long time, so it's obvious we have enough fans to come out and have us draw 2.6-2.8 (million) if they like what they see."

 

Reinsdorf did say sponsorship sales were up and that higher television ratings could generate higher revenues.

 

That could help defray the increase in payroll after strong consideration was given to not re-signing free agents Paul Konerko and A.J. Pierzynski and trading more players who would have lowered payroll with the possibility of getting better in two or three years.

 

"As we looked at the rest of the players we could move, without getting into particulars, it didn't look like we could get enough back so all we would end up doing was having a worse team with a low payroll," Reinsdorf said. "We would make money, but we wouldn't be building for the future.

 

"I didn't mind taking a step back because we have done it before. But I didn't want to take a step back without feeling really good that step back was going to help us going forward."

 

Reinsdorf said a successful start and spike in home attendance would cover the higher payroll, adding that they would have the resources to sustain a financial loss if they start slowly.

 

"That was really the thought process, the idea of being bad for two to three years was a horrible thought when you're 75-years-old," said Reinsdorf, who added he recently passed a stress test.

 

Reinsdorf also said he doesn't anticipate any tension resurfacing between general manager Ken Williams and manager Ozzie Guillen.

 

"No, that was foolishness that grew out of Oney's twitters or tweets or whatever they are called," Reinsdorf said in reference to the controversy surrounding Guillen's middle son Oney last season. "That's not going to happen."

 

"These guys have too much of a history of getting along and working. There's a natural tension between managers and general managers and head coaches and general managers. It always exists. It will flare up from time to time. Right now, they are on the same page."

Edited March 17, 2011 by SpainSOXfan09

[Balta1701]

JR's still a businessman.

 

Anything he can say that puts butts in the seats earns him money.

[Tuna]

Professional sports is really the only industry where the payroll takes up around 60% of the gross revenue.

 

The owners are greedy but don't leave out the players.

 

Yeah, but shouldn't it make a difference that the payroll/players are also the product?