A Penny Saved Is A Penny Pocketed
Off Wing Opinion highlights a key Stan Kasten quote from the Boswell column that I'm refusing to read.
At any rate, it's a sentiment that anyone can and should agree with. But you have to take it a step further because it's easy to misunderstand.
What Stan is saying is that if you spend $10 million to sign Ramon Ortiz (GAH! Just typing that gives me seizures!1!1), that's $10 million you don't have to sign someone who's actually useful like Andruw Jones -- or not sign as the case is certain to be!
What it does NOT mean is that the money they're saving this year -- we're about $30 million less in payroll than last year -- is going to be saved and used in future years. Generally, teams have a yearly use it or lose it budget. I'm not 100% that this is the case with the Nats, but 99% of all businesses operate this way. They'll make next year's budget based on next year's revenue projections, regardless of how much money they're pocketing this year ... errr... 'investing in the minors' and using for 'improvements to the stadium'.
On that note, Cousin Mark has confirmed that there will be a payroll increase (duh! park revenues from the new stadium should at least double), but hasn't said to how much. (This post is a bit conspiratorial, but it's an interesting reading into a potential reason for Cousin Mark's sudden emergence)
"I know you don't understand the concept that 'Money once spent is gone forever,' " Kasten said, "but it is true, nonetheless. If you waste millions now then you don't have it later when it can help win a pennant."OWO goes on to agree with that sentiment, pointing out a few examples from a sport called "hockey." (Apparently, it's this regional thing played on ice, sorta like Lacrosse. Incidentally... feckin' Sabres!1111!1!1)
At any rate, it's a sentiment that anyone can and should agree with. But you have to take it a step further because it's easy to misunderstand.
What Stan is saying is that if you spend $10 million to sign Ramon Ortiz (GAH! Just typing that gives me seizures!1!1), that's $10 million you don't have to sign someone who's actually useful like Andruw Jones -- or not sign as the case is certain to be!
What it does NOT mean is that the money they're saving this year -- we're about $30 million less in payroll than last year -- is going to be saved and used in future years. Generally, teams have a yearly use it or lose it budget. I'm not 100% that this is the case with the Nats, but 99% of all businesses operate this way. They'll make next year's budget based on next year's revenue projections, regardless of how much money they're pocketing this year ... errr... 'investing in the minors' and using for 'improvements to the stadium'.
On that note, Cousin Mark has confirmed that there will be a payroll increase (duh! park revenues from the new stadium should at least double), but hasn't said to how much. (This post is a bit conspiratorial, but it's an interesting reading into a potential reason for Cousin Mark's sudden emergence)
posted by Chris Needham at
8:54 AM
1 Comments:
It's not clear, either with our without the context of the quote, if Snake Oil Stan is referring to actual savings in 2007 or is referring to money not spent in long term guaranteed contracts.
If you accept that SOS is talking about future years, then his point is entirely valid. An extra $8-$10 million might be very useful in 2010 (that would be the 4th year of a four year contract given last off season).
By
Anonymous, at 5/10/2007 2:28 PM
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