Comparison
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The Cincinnati Reds' financial health is among the worst in Major League Baseball, according to New York-based Financial World magazine.
The Reds were ranked last among Major League Baseball teams in operating income, posting a loss of $14 million for 1996. Operating income is defined as total revenues ($45.3 million) less operating expenses ($59.3 million).
The magazine valued the franchise at $95 million - 21st out of the 28 teams. The magazine's data show the Reds' player costs for the 1996 season at $45.3 million.
Ranked first in revenues ($133.3 million) and franchise value ($241 million) were the New York Yankees. Last in revenues ($39.9 million) and value ($71 million) were the Pittsburgh Pirates. Reds Managing Executive John Allen said Monday the magazine makes for "interesting reading" but he didn't want to comment on the specific numbers.
The figures bolster the team's assertions to Hamilton County officials that the Reds face dire financial straits. In documents obtained by The Enquirer, the Reds have argued that the team's contribution to its new stadium project must be limited because of its financial predicament in a small market.
The Reds' big problem is that the club hasn't fielded a strong team since the baseball strike, making it difficult to recover from the work stoppage, said Roger Noll, a professor of economics at Stanford University and expert on the business of professional sports.
There's a relationship between how much a team earns from its stadium and how much it is able to pay players, he said, and new stadiums are built to generate more revenues.
"Owners' ability to compete is harmed if everyone else has a new stadium," Mr. Noll said.
Hamilton County Commissioner John Dowlin argues that the Reds' financial predicament is exactly why the team should agree to build its new ballpark at Broadway Commons.
The team - which has steadfastly pushed for its new home to be on the riverfront - could get a new stadium built faster at the Broadway and Reading Road site, Mr. Dowlin said.
"They, it seems to me, are in bad trouble," Mr. Dowlin said of the Reds. "If they've got an immediate problem, why shouldn't they get a more immediate deal - cheaper?"
Mr. Dowlin argues that because a ballpark would be cheaper to build at Broadway Commons, the county could offer the struggling team a more attractive financial package.
But the riverfront stadium site, known as Baseball on Main or the "Wedge," appears to enjoy the advantage in stadium talks because the Reds want to be on the river.
County Commission President Bob Bedinghaus - the county's point man on stadium issues - has said the county won't force a site on the team.
The Wedge is between Riverfront Coliseum and Cinergy Field and is the only riverfront site county officials are considering.
Mr. Dowlin, a vocal fan of Broadway Commons, revealed last month that a ballpark on the riverfront could cost as much as $62 million more than at Broadway. His figures included a two-year inflationary increase for the riverfront site but did not include costs for buying the land at Broadway.
Mr. Allen said he isn't convinced that Broadway would be that much cheaper, especially when land costs are added. The riverfront site has much better highway access for the Reds' regional fans, and that will make a difference in the long run, he said.
"We have to look long range," Mr. Allen said. "We can't just jump into a deal that offers a quick fix for three or four years." Because building a stadium on the riverfront would create a delay for the team, there has been discussion that the county should pay the Reds for waiting.
Mr. Dowlin said he would vehemently oppose any such plan. He, Mr. Bedinghaus and Tom Neyer Jr., the third commissioner, ultimately will vote on a lease deal with the Reds.
REDS PAGE
Previous stadium stories
BIG STADIUM ROADBLOCK REMOVED July 15, 1997
STADIUM SIDES DEFINED July 11, 1997
STADIUM STANCES July 11, 1997
STADIUM MEETING TONE UPBEAT July 11, 1997
REDS PLAY DOWN SEAT LICENSES July 9, 1997
REDS CALL FOR SEAT LICENSES, RIVERFRONT SITE July 8, 1997
HIGHLIGHTS OF REDS' PROPOSAL July 8, 1997
REDS WANT GUARANTEE ON 2002 July 5, 1997
REDS SAY THEY NEED GOOD STADIUM DEAL TO COMPETE July 4, 1997
CITY, COUNTY FEUD OVER CONSULTANT July 4, 1997
REDS ASKED FOR $235M STADIUM July 3, 1997
'WEDGE' FOES DEMAND STADIUM STUDY July 2, 1997
'WEDGE' TO BE PUT TO THE TEST July 1, 1997
REDS UNMOVED BY PRICE GAP June 20, 1997
DOWLIN SAYS BROADWAY CAN SAVE $62 MILLION June 19, 1997
BALLPARK ESTIMATE: $230 MILLION June 11, 1997
RIVERFRONT SITE BETTER BET June 6, 1997
BROADWAY, 'WEDGE' ONLY OPTIONS LEFT? June 4, 1997
REDS RELENT ON WEST SITE June 3, 1997
NOTHING WILL DISLODGE REDS FROM RIVERFRONT Tim Sullivan column, June 3, 1997
REDS TO KENTUCKY? WHISPERS PERSIST May 31, 1997
NO DEAL WITH REDS SEEN BY JUNE 1 May 23, 1997
REDS EASE STANCE ON 'WEDGE' May 16, 1997
REDS MIGHT HAVE TO WAITMay 5, 1997
COSTS GOING UPMay 5, 1997
SCHOTT SAYS 'NO WAY' TO WEDGE April 12, 1997
SULLIVAN COLUMN April 12, 1997
CITY COULD PAY TO DELAY STADIUM April 10, 1997
BENGALS LEERY OF 'WEDGE' April 9, 1997
THE GREAT STADIUM DEBATE
BALLPARK DEBATE LINGERS ON April 6, 1997
NEIGHBORHOOD A BIG PART OF BALLPARK April 6, 1997
BALLPARK, FANS' HONEYMOON SHORT April 6, 1997
REDS HAVE HURDLES, HELP IN SITE HUNT April 6, 1997
KENTUCKY DESERVES REDS, TOOApril 6, 1997
BORGMAN CARTOON
April 6, 1997
REDS PLAN SEAT LICENSING March 14, 1997
REDS TOLD BENGALS NOT PICKING SITE March 12, 1997
MAYOR SUPPORTS BROADWAY March 5, 1997
DESPITE FLOOD, REDS DON'T WAVER FROM RIVER March 5, 1997
BASEBALL ON MAIN PROPOSED Feb. 26, 1997
WEDGE SITE GETS BOOST FROM COUNTY Feb. 22, 1997
REDS, COUNTY RESUME STADIUM TALKS Feb. 19, 1997
ONLY CRIME IS NOT CONSIDERING BROADWAY Feb. 18, 1997
RIVER SITE OR LAWSUIT Feb. 15, 1997
REDS ARE READY TO PLAY HARDBALL Feb. 15, 1997
SCHOTT THREATENS TO MOVE IF REDS AREN'T ON RIVER Feb. 14, 1997
