What is your opinion of the A.J. Pierzynski signing?
MJH on accountability
Listening to the Musers this morning on the Ticket I was shocked to learn that Mr. Integrity Nolan Ryan did not participate in last years operating loss. WOW.
Nolan has concession contracts, and his tripple A club all doing business with the Rangers. He also drew a salary last year of $1.7 million. The salary seems on the light side but when you factor in the other revenue and equity built in those businesses it probably is in line.
The shocking thing to me is that the club took an operating loss of $60 million (i could be slightly off on these numbers I didn't take notes) and Nolan didn't participate in the loss at all. This comes from a payroll of around $120 million plus money paid to the Nippon Ham Fighters for Darvish and I am sure depreciation on the improvements debt service etc. This is partly how they chose to do the accounting on these items.
So the team takes a loss the owners with the exception of Nolan pony up their share. Not only does Nolan play the part of the hourly employee and just take his salary without writing a check for the deficit he doesn't have his ownership percentage diluted. I am sure when the new TV money kicks in Nolan will be there to collect his share of the net profits.
For me this is a huge problem. The big thing it points out is that Nolan is not an owner. Owners share the risk, he is just a figure head owner. We knew his stake was pretty small, he probably didn't actually put any money into the deal in the first place and that was all fine. These kind of arrangements are common when an executive brings sweat equity to the table and Nolan certainly did that. But not sharing in the loss, keeping his share of the company the same, still drawing a salary, and getting all the credit has apparently chafed on others in the ownership group. Otherwise they wouldn't be telling Jr Miller about it.
Another member of the ownership group also reached out to some guy on the fan yesterday to remind us that it was Chuck Greenberg that brought Davis and Simpson to the table, not Nolan Ryan. That Nolan had already pulled a power play and demanded him or me with Chuck Greenberg. In this instance Chuck had apparently over stepped his authority enough that Nolan was able to get Simpson and Davis to dump their guy Greenberg.
According to the tickets Miller this all about power for NOLAN. Nolan has thrown another temper tantrum. To me it looks like Nolan wants more power over JD.
To me it looks like Nolan is power hungry doesn't think he should play by the same rules as everyone else in the world and it extremely arrogant..
Friday I was listening to GAC when the press release came out and immediately Galloway had the stance he has echoed in the Star Telegram the last few days. This seems to me like Nolan is using Grand Paw Urine to spew Nolan's party line that it was a Daniels power play. Why else would Galloway know Nolan's thoughts on this prior to the press release Friday.'
You can go back and look at my post and know that for over a year I have grown frustrated with Nolan's way of looking at baseball. I have thought he is out of touch and more of an road block to JD than the caution sign he should be.
Now putting 2 and 2 together and reading between the lines it looks like to me Nolan is a greedy arrogant spoiled child of a man that wants all the power all the credit and non of the work and even less of the risk.
It's time for Nolan to go, the fans will get over it and the club will be the better for it.
Good bye Mr. Ryan, I only wish you were the man I thought you were.
Cry for us! If you think the Rangers lost 60 mil you don't deserve to post on here.
I don't know who you are but if you can't do basic math maybe you shouldn't post on here either. Also I said operating loss and that can be impacted by accounting techniques applied.
120 million in payroll plus 52 million for Yu plus RBIA improvements and depreciation. Where is the $200 million in revenue to turn that into a profit coming from in your calculations?
I didn't see the number 3.5 million anywhere.And there are rumors of a television contract?
3.5 Million tickets x $35 is $122.5 million. That''s the average ticket price used by the ticket this morning plus ten for profit off of concession sells.
The TV deal kicks in starting 2015. So last years TV money was around $20 million.
Not sure how much merchandise profit there is but its not another 60 million. There isn't 60 million in suites or sponsorship either.
Out of that you have to pay 120 million in payroll plus the 52 million to the Nippon Ham.
You have your minor league contracts, scouting, FO personnel the guy that throws you a Bud and his friend that obstructs your view with cotton candy. Don't forget the nice lady that scanned your ticket walking into the ballpark and the guy that mowed the lawn that morning. Advertising cost and that fake horse.
So yeah I guess now that I break it down you are right the Rangers made 2 BILLION bucks last year.
You forgot those tremendous $26 weiners.But i guess Nolan pockets all that?
The Rangers drew 3.5 million fans and the owners lost actual money? No way. Someone doesn't know how the numbers in a business work. If there was a $60 million loss, it was a paper loss where someone got a write-off, not cash out of pocket.
Mjilfx-don't be an idiot. Others on here have claimed that spot. Learn math. THINK!
I guess there is really no need in going back and checking the math of someone who" put 2 and 2 together and came up with Nolan being a greedy arrogant spoiled child of a man"
I wish Nolan would put you in a head lock and give you some nuggies.
I"m tired of the whole story.. if he stays or if he goes it's not going to make any difference to the players and probably not the fans either... if the rangers win, people will flock to the ballpark; if they lose, they'll flock to someplace else.
No one comes to the ballpark because they see Nolan sitting in the owners box... it's the same nonsense one hears about Michael Jordan... he was a great player, therefore, he should be a great evaluator of talent and a great owner... he sucks at both... no free agents are signing with Charlotte, because MJ is the owner... if they have a winning situation and they pay, then they'll go to charlotte.. same with the rangers...
Daniels has done some things wrong and he's done some things right... the overall record the last few years speaks for itself... the club has shown fiscal restraint, while also being unafraid to make moves when necessary... they've been to two world series, and three straight playoffs...
They've got a lot of young talent and a plan in place to stay competitive for the next several years...
Nolan stays, fine.. nolan goes... fine... let's just move on.... the story is tired already
Also, I'd be a bit surprised if that $52m for Yu was paid all at once, at least from Bob's and Ray's pockets. Seems like it would be amortized.
Really though, the more important point is, if the Rangers really lost $60m last year, they probably knew it was coming. There's no way they could have expected to sell 5-6 million tickets, or however many they would have to in order to get to $180m or whatever.
I repeat-we DID NOT lose 60 million last year. That is just for MLB accounting so we can cry about losing money.
i believe the posting fee was all paid at once, up front... how they handled it on a financial perspective, who knows...
and yes, they had a budget and had a good idea as to where they stood...
The payment to the Japanese club was due in one lump sum payment but it probably amortized over the life of the contract; it was probably funded with a loan.
Who said they were bitching about losing money? They were in on Greinke until the waters got too rich and stupid and the same with Hamilton. I haven't read one story about them being in a financial blind. They know they can run at a loss for now until the TV money kicks in. The main owners are billionaires and can do that.
Greenberg gets cut. Now it's Nolan's turn. Simpson/Davis are not in it for the baseball, they are in it for the money.
Greenberg was a good cat who put the Rangers together. It didn't take long for Nolan, Simpson, et al to forget his contributions. I doubt Nolan would have enrolled the entire non-player staff in the MLB pension fund.
Andy you are right it was a paper loss. That is what i thought I said. There was a cash shortfall I don't know how much and I thought I stated as much above. You make tons of money on paper and still have have a cash shortfall, just like you can lose money and have surplus cash flows.
The money to Nippon Ham was due in a lump sum and it is my understanding that for baseball salary purposes it was amortized out over the life of the contract. However there were some reports that the Rangers are bumping up against MLB's debt/equity ratio limits and that could have triggered a cash infusion.
All financial statement losses or gains are just on paper, its the balance sheet that maters and the Musers reported this morning there was a cash shortfall and the owners put money in and Nolan didn't. That I find greedy. You probably think it is Nolan birth right to not share the risk.
JD much of it is probably for IRS accounting so they can carry the loss forward, yes?
Dan you are part of whats wrong with this site in the Matches absence blowing smoke out of your ass with out understand baseball or business. Looking at your other post that's about all you do is come on and flame and add zero the conversation. Its like you belong on Halosheaven or something.
Mhilgtx: Not familiar with the 'smoke outta the ass thing'. Maybe you could enlighten us. Not something I would wanna do but hey if that's your thing-go for it. About the accounting it is obvious you don't have a clue in hell what you are talking about.
Let's ask Joey. He's an accountant.
There could be several reasons why Ryan did not participate in the cash call without penalties. First, that could be his arrangement with the Rangers, that is he has an undilutable position. Second, the cash call could be in the form of a loan. In the first instance, the participating partners will get an increase in their capital accounts, which must be balanced eventually. They get the money first.
If it is a loan, they also get the money first, but with interest.
Finally, he may not have had the money, or if he did, he saw the parting coming and declined.
It's guys like Dan W that make me never want to come on this site. mhilgtx comes on with at least a half decent thought out post, and Dan W comes on like acts like a complete and total internet asshole. There were some good articles at FanGraphs and other spots echoing mhilgtx's sentiments, and it makes sense.
The hate around here is unreal. I'm not sure people know how to have an actual discussion. It's as if as soon as there is the slightest bit of disagreement it's "learn how to do math before posting on here because you don't deserve it" shit.
Well, fuck that. No wonder the proprietors of the site haven't posted in so long. I wouldn't waste my time either and frankly I'm disappointed I took the time to even make this reply.
Come up with a solution Dan W and quit being an asshole for at least 15 minutes a day.
Primi it probably was or at least Nolan negotiated it that way when they signed Yu. It seems most likely that the any cash shortfall was directly related to Yu and not wanting to add more debt for whatever reason. Craig Miller (from the ticket radio station for those in other markets) only said it was not well thought of by some in the owners group. The info he got was from a member of that group that is acquainted with.
As far as booking the NHF pay out for Yu as a loss and carrying that loss forward is for an accountant to comment on. I think you can do that and it would make since to do so but I could be wrong. It could be prepaid something or another.
I am not terribly familiar with partnership taxation, but I think it more likely the loss associated with the Yu contract can not be taken immediately and be carried back or forward. Rather, the expenses will be allocated to his contract years. It all comes out the same except for the timing differences associated with the inability to carry back/ forward connected with the expense. I believe there are specific Code provisions on the deductibility of sports contracts, though I am not sure if they apply to all contracts or those acquired.
This sounds like a job for an accountant. If only we knew of one we could ask...
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