Owner’s following dreams
Who hasn't spent times at night dreaming of being the next Nolan Ryan? At one point or another, every little leaguer has promised themselves to become baseball’s greatest. For 25 men, they accomplished that feat without any baseball talent.
Take a look around Major League Baseball owners and you will find an undying passion for the game. Their success in business but failure and commitment in owning a baseball team shows us just how beloved the game of baseball is to Americans. Men who have accomplished all that could be done in their industry live a dream in a baseball business that costs millions yet doesn't give back as much.
In 2002, a team of investors led by John Henry purchased the Boston Red Sox for $700 million. With a payroll of $125 million, the Illinois Commodity Trade Advisor is in an arms race with rival Yankee owner George Steinbrenner over the most valuable franchise in the league, according to Forbes Magazine. However last season, the operating costs for the Red Sox was negative 18.5 million. Henry is not the only one to cough up a large sum to own a baseball team. In fact, multiple industries are involved with Major League Baseball.
Cincinnati Reds owner Robert Castellini’s company has the largest amount of produce in the
Los Angeles Angels of Anaheim owner Arturo Moreno became the first Hispanic owner when the New Mexican native purchased the team from the Walt Disney Company for $184 million in 2003. Since then, the value of the team has doubled to $368 million.
Little Caesars, Arby's, and Safeway all have ties to baseball ownership. Mike Ilitch (Little Caesar’s) purchased the Detroit Tigers back in 1992 for $82 million. William DeWitt’s firm, which owns Arby’s, is the managing partner for the St. Louis Cardinals. The brewing tycoon Busch family sold the Cardinals to DeWitt after 50 years and 15 NL pennants of family run ownership for $150 million.
Four Companies (Time Warner, the Tribune Company, Rogers Communications, and Nintendo), two Wal-Mart chairmen, an art dealer, a ship builder, a Real Estate developer and former Sports Agent all own a major league team. Heck, even the game itself owned a team before selling the rights of the Washington Nationals to a real estate developer for $450 million.
In a country where only efficient businesses survive, a baseball team proves otherwise. Many teams fail to match operating costs and the price per win ratio is drastic. While some owners keep payroll low to prevent large debts, others open their wallet in hopes of buying a World Series ball club. Texas Rangers owner Tom Hicks, an investor, hoped to accomplish that feat when he paid Alex Rodriguez a quarter of a billion dollars to play shortstop in
Despite what most owners think, the road to the World Series is won through the farm system. In the past five seasons, only one top five payroll team won the World Series (2004 Red Sox). That if you want to win a world series: give your general manager the big bucks, not your players.
