Forbes.com reported today that Major League baseball league-wide revenues jumped from $8 billion in 2013 to $9 billion in 2014, mostly due to the league’s new national TV contracts and to revenue from MLB Advanced Media, the league’s online streaming arm.
A look back: In 2001, revenue was $3.6 billion; adjusted for inflation, $4.66 billion in today’s dollars, according to Forbes. That year, three MLB teams had payrolls over $100 million; the Yankees led the way with just over $112 million. 16 more had more than $50 million in payroll that season. Since then, revenue has doubled, more or less. The Dodgers had a $235 million payroll last year, and the Yankees nearly cleared the bar to $200 million as well. 14 other teams had payrolls of at least $100 million.
$200 million is the new $100 million, when it comes to payroll. $100 million is the new $50 million.
Since Target Field opened in 2010, the median MLB payroll has gone from $85 million to $107 million – right in line with revenue, which just like the median payroll, has jumped 25% in that five-year span. During that same period, the Twins’ payroll has declined, from $98 million to $85million. Don’t let the Twins fool you; they will try to tell you that they’re spending plenty of money. They aren’t.
Remember this the next time Terry Ryan or Dave St. Peter talks about being “fiscally responsible.” Remember this the next time your neighbor complains about Joe Mauer’s contract being the problem with the Twins. Remember that MLB’s revenue explosion, and the great gobs of taxpayer money that funded Target Field, mean that the Twins are making more money now than they ever have before – indeed more money than they could ever have dreamed of.
They’re just pocketing it, instead of spending it on improving the team.