Tuesday, September 29, 2009

Pirates Loot

I saw a headline for this article:
http://sports.espn.go.com/mlb/news/story?id=4515811&campaign=rss&source=ESPNHeadlines

I realize that the loser in this case is the fan and the player. I am neither of these, so perhaps this is where my opinion differs from those that are.

What is so bad about trying to make a profit? I mean, a baseball franchise is a business. Businesses is most cases have the objective to maximize profit. It is funny how the commissioner has to go and tell people that they are not trying to make a profit. Well, let me correct myself, he has to say the owners are not pocketing the profit. Still, if they were, that is a business decision. Right?

If I start a business and want to pay myself more, if there are profits I can put them back into the business toward growth or I can take it as my salary and do what I want. One way the business will grow and make me profit later, one way is for short run gain.

I cede that the accounting model above is simple. I understand that baseball has unions and rules and regulations and image and on and on and many people are not concerned with the profitability of the team, but with wins and bragging rights. But still, if you do not like the management and the way they run the business, perhaps it is time to find a team that you do like the management for - or stop enabling the management to make decisions you do not like by funding the team.




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