What if the Nuttings Are Losing Money?


I’ve heard folks argue that the Nuttings and McClatchy (The Pirates ownership group) are actually losing money on the Pirates. If this is the case, what more can we expect from the team but to lose? I couldn’t agree more. If the Pirates are stretching the budget thin… they’ll never be able to win. While I don’t believe this is the case, and I think the Bucs could just as easily prove me wrong by opening their books, I’ll assume for a minute that they actually are losing money.

Bob and G. Ogden Nutting and Kevin McClatchy are businessmen. Their mission in life is to die with the most money. It’s what all greedy businessmen live for. In the 90’s when they came to Pittsburgh and talked about saving the Pirates, they weren’t talking to the fans of the Pirates as saviors; they were taking advantage of a struggling franchise which they could purchase at a bargain. Knowing what they know about business, and how to repair the damaged organization, their mission was to turn the a business which is losing money into a profitable one.

Anyone who believes the current group cares one lick for baseball is a sucker. Anyone who believes these guys came to Pittsburgh for some magnanamous hero’s mission is a moron. They’re here for the money.

If the Pirates are losing money, it’s not because of any reason other than the Nuttings are bad businessmen. If they are bad businessmen, then they probably aren’t the right guys for this job. Say what you want about guys like George Steinbrenner, but at least he runs the Yankees with one mission: Win it all, every year. You can argue that he takes advantage of a poor baseball system. You can argue that he creates an unfair advantage by spending more than anyone (close to $200 million), but just like the Nuttings, he’s operating completely within the rules. The difference is the Yankees consistently win.

Yes, the salary system in baseball is not good. It could use a minimum salaray and a cap, just like the NHL has. Since those decisions are never going to happen, MLB teams need ownership which can win in the current system. The Nuttings (if they’re losing money) aren’t it. If they aren’t losing money, like I suspect, they’re not doing all they can to win. Either way, the Nuttings are bad for Pittsburgh, the Pirates, and baseball as a whole.

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June 27th, 2007
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Comment Number:
1
Written by:
David Conway
Posted on:
June 27, 2007 at 9:36 pm

I am a displaced Pirate fan from albuquerque New Mexico. When I heard about your protest, I was imediatly infactuated with the idea to protest the regime that has turned this once proud franchise, into the laughing stock of the entire leauge. It turns out i will be here in pitt. for the next series and two games into the brewers series. I have another idea for the future however. I think it would be benificial to have fans go on the rotunda for an entire inning and chant NUTTING OUT! McCLATCHY OUT!I think it would hurt them mentally and would also create a big media buzz.. I also think fans would really catch on to the chant, and it would become a regular chant untill these goons are out!

David Conway age 18
Albuquerque NM

Comment Number:
2
Written by:
Jeff Irvin
Posted on:
June 27, 2007 at 10:47 pm

No way this group is losing money. I see the point you where making and I agree with the overall verdict that they are shitty owners but they are making money and here is why.

We can argue all we want about salary caps and operating income but the one fact that no one ever seems to talk about is the value of the franchise.

In 1996 the McClatchy/Nutting Group purchased the Pirates for $92M. According to Forbes, the Franchise in 2006 is valued at $274M. That is a $182M increase over 10 years. The equity gained in the franchise is coming in at $18M + per year.

These bastards are getting rich just on the equity increase alone.

It is basically the same principle of you or I gaining equity in our house and then taking out a home equity loan.

Then they have the nerve to tell us they do not collect dividends or a salary but use revenue sharing money to, “Pay down Debt”. That Debt is the original $92 M they borrowed to by the team. And you know what paying down that debt does?? It increases the overall equity in the Franchise thus creating even more wealth to the Nuttings.

And here is the kick in the nuts. How come teams like MIL and CIN can have so much higher payrolls that PIT? Well, because they borrow against the assessed value of the franchise and use that money for payroll and minor league development.

Not the Pirates. They operate on a year-to-year balance sheet method. Money in, Money out. If they did open the books this is what it would show and it would show they where breaking even. But in reality that is not the case b/c of the paying down of debt and yearly increase of the franchise they are making a killing. At the minimum a $182M over 10 year killing.

Sorry for the long rant, had to get that off my chest. See you on Saturday.

Comment Number:
3
Written by:
JP
Posted on:
June 29, 2007 at 9:27 pm

Don’t know if you caught the statement from Mr. Nutting after tonight’s game on FSN. However, the point is, he passed this over as a protest against the players. After this latest remark of his, I like the chant NUTTING OUT! McCLATCHY OUT! Maybe this would get the message across to him. We want the players to know, it’s not them. It’s the ownership and coaching staff that must go.