Thread: Fanhouse Reports Reds To Slash Payroll

Quote: Originally Posted by dougdirt Sure a sale is necessary because that loan you get based on it isn't profit. You have to pay that back. You don't have to pay it back by selling the team. If you take out a home equity loan you don't have to sell the house to pay back the loan. If you take out a loan to buy a business you don't have to sell the business to pay back the loan. You can use the profits from the business to...

Quote: Originally Posted by flyer85 Bob needs to better leverage his veggies. Bob needs to leverage something that's for sure, his words have lost a lot of value.

One last thing. It would be a crying shame to waste Votto, Bruce, Cueto, Volquez, and Bailey on year after year of reaching for .500.

Using the increase in team value to rack up more debt and become highly leveraged is simply not good business no matter how you slice it. Spending every last penny of operating profits isn't exactly smart either. I agree that the Reds tend to cry poor but what they need to do is use their current resources more effectively not spend every last dime they make.

Facts are something that have solid evidence, what I see is conjecture driven by some facts.

At issue in this thread has been a disagreement over whether the Reds ownership is trying to win or simply trying to make as much cash as possible for their private coffers. Forbes gives us a rough outline of team finances including franchise value and operating income (OI or "earnings before interest, taxes, depreciation and amortization"). We also have rough estimate of payroll figures (from either Cots or USA today)....

Quote: Originally Posted by Strikes Out Looking Here is what I think: The payroll the Reds would like to dump in the offseason is Willie T's 4 million. The Reds plan no major moves or changes at this time, but knowing that Walt likes to make trades, someone could be moved, if he feels it makes the team better--but it won't be a situation where the Reds take on salary for next year. If the Reds get off to a good start and are in...

Quote: Originally Posted by Raisor If the team is building up from the ground up, why haven't they tried to infuse the minors with more prospects from trading away vets? . It doesn't have to be an "all or nothing" approach. We don't exactly have CC Sabitha to dangle in front of contenders. Think about it.. Every contender is going to look at Cordero, Arroyo and Harang's contract and wonder if they can get...

Quote: Originally Posted by westofyou They should probably stop radio too. In fact why not just let out of town buyers just take the local fans out of their misery? Radio's a different animal all together.

Quote: Originally Posted by _Sir_Charles_ Yeah, and I also see the direction they're heading as opposed to the direction they were heading for the first 8 years of those 10 years. Building this franchise from the farm system up has been a major turning point IMO. I hasn't reaped the rewards in terms of the MLB record yet...but I think we're already seeing the rewards in parts. As long as Walt doesn't mortgage the farm...