[News] Ricciardi cuts Jays's payroll to $85M
http://www.canada.com/sports/Ricciardi+ordered+Jays+2009+payroll/1249791/story.html
Ricciardi ordered to cut Jays’ 2009 payroll to $85M
By Jeremy Sandler
TORONTO — The Toronto Blue Jays’ budget-slashing off-season could be a
taste of what is to come for the franchise as the worldwide economic slowdown
rolls on.
General manager J.P. Ricciardi received orders to shrink the 2009 payroll
from nearly $100 million US to about $85 million for a season that has been
classified by the club as a reloading or rebuilding year.
While Toronto has made an offer to veteran first baseman Kevin Millar, one of
the players left in the free-agent bargain bin, the Jays’ signings to this
point have been restricted to minor-league deals. And things might not change
next off-season.
The team’s initial budget for 2010 will be set based on numbers through this
June or July. And a combination of slowed ticket sales and sponsorship could
force further belt-tightening when it comes to player salaries, the largest
expense for a baseball team.
“Tickets are the largest component of revenue,” interim president Paul
Beeston said. “There’s money that comes from central baseball, there’s
money that comes from television, there’s money that comes from concessions,
but the No. 1 for most teams, including Toronto, would be ticket revenue. And
so as you generate more ticket revenue, you obviously have more general
revenues. The more general revenues you have, the more you can spend on
salaries.”
One source with knowledge of the team’s business operation said ticket
renewals for next year were off by as much as 10 per cent.
Blue Jays vice-president of ticket sales and service Jason Diplock confirmed
ticket sales are down, though he would not divulge specific numbers.
“Our full-season ticket renewals have been quite encouraging,” Diplock said.
“We’re not immune to the global economic issues that are out there. We’re
feeling it as well. We’re keeping our head above water at this stage of the
game.”
Diplock said the team hopes improving fortunes — on the field and with the
overall economy — will help with the bottom line, which has also been hit by
the departure of major sponsor General Motors.
“Our hope and our belief is that the team is going to be performing a little
better than some people are going to suggest and that ticket sales will flow
a little differently than it has in years past,” he said. “We’re hoping,
once we get to the end of (quarter) one and the beginning of (quarter) two,
the population at large will feel better about the state of our economy and we
’ll see the money coming in.”
The question becomes how realistic those hopes are. Economic experts believe
the current recession will continue through 2009 before growth begins in
2010. And the Blue Jays seemed to go in the opposite direction of their
division rivals this winter. Toronto lost 19-game winner A.J. Burnett to free
agency while the rest of the American League East was making significant
additions.
There is also the unsettled front-office — where a search is supposed to be
underway for a new president and CEO to take over from Beeston — and
uncertainty over the team’s long-term ownership after the death of Rogers
Communications CEO Ted Rogers in December.
Still, Beeston said the Jays should not be written off, either this year or
next. He pointed to a player payroll that is not yet plumbing the depths of
$30 million or $40 million and to the presence of 20-game winner Roy Halladay.
“We have salaries of $80 million, we have the best pitcher in baseball, we
have a very good bullpen,” Beeston said. “If the players in the field play
the way we think they can, we should score some runs this year. Now the
question is where those (starting) pitchers — two, three, four and five —
are going to come from.”
Beeston added there could be a case where, despite the current edict to trim
losses, the team might make a move to bump its payroll if it makes
competitive sense.
“You could make a case that if we got ourselves back to a position where we
want to go forward, we’re prepared to take a chance.”
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