2/5/17

Mack Ade – Q and A – Meaningful Games, International Players

6 comments

Good morning.


Gary asked –

Mack here's a question: do you think it's enough for management that we play meaningful games in September as far as how much they make dollar wise or put another way do you know the financial difference between what they made in 2015 when we went to the WS and what they made last year when we only made it to the WC. To make the signing of a much needed lefty in the pen, and really 2 would be better, about the money is just foolish and to think they paid what... $22 million for this team in 1980 and it's worth 1.5 to 2 BILLION today...Wow

            Mack – Let me break down your question.

1.     The profit and loss statements/situations involving the Mets are about as stealth as missile testing in North Korea. What we can safely assume, is that the team is in the black, even after paying themselves their huge salaries (which are not considered operation expenses).

2.     The pre-season isn’t over yet. And Jerry Blevens and  Fernando Salas have been inked since you wrote this question.

3.     You can’t compare $22mil in 1980 with the value of the team now. The cost of operating this team, paying taxes, debt on the stadium, etc.is completely different. The value of this team is based on the value of the total package before paying off what is owed. That would have to be paid off by the selling team (Mets}.

4.     Lastly, a value of a sports franchise is based on profit per season times a cash flow multiple, which is determined by the economy and banking climate. I sold my first radio station in 1988 for 10 times cash flow… my cash flow was $440K, thus I was paid $4.4mil. I sold my last station in 1990 at three times cash flow because the economy had tanked and, when all the deals were done, I still owed the bank $1mil and they called in the note.

Back to your original question, owning and operating a major sports franchise is an emotional one and every owner wats to win the big one. And no one wants to win it more than the Wilpons.

Mike asked –

I saw last week that the Giants signed 29 year old Korean 3B Jae-gyun Hwang to a Minor League Deal and if he makes the opening day roster he gets $1.5 Million.  Why are the Mets not making more signings like this?  The guy hit .330 with 26 home runs and 104 RBIs in 118 games as well as stealing 24 bases.  Now is he going to do that over here? Probably not but still I'm sure he would provide great depth in the minors especially since the current Mets 3B has a history of back problems.  This is the stuff that bothers me that the Mets don't take more chances with International free agents.  Instead they'll sign someone like Niuman Romero who hit .248 last year.
            Mack – Thanks for the question Mike.

The Mets, especially under Sandy Alderson, never have been a big buyer of players outside the normal Latin American channels, like the Dominican Republic, Curacao, and Venezuela. They especially don’t participate in Asian and European countries that often.
Maybe their lack of success here is part of the reason. Here are the Asian players that have played for the Mets since 2000 and their stat line –
            2000 – none
            2001 – OF Tsuyoshi Shinjo: 400-AB, .268
            2002 – P Satoru Komiyama: 25-G, 5.61  -  
                        P Jae-weong Seo: 1-G, 0.00
            2003 – OF Tsuyoshi Shinjo: 114-AB, .193 –
                        P Jae-weong Seo: 32-G, 3.82
            2004 – P Jae-weong Seo: 24-G, 4.90 – 
                        SS Kazuo Matsui: 460-AB, .272
            2005 – P Jae-weong Seo: 14-G, 2.59 – 
                        SS Kazuo Matsui: 267-AB, .255 -
                        P Dae-Sung Koo: 33-6, 3.91 –
                        P Shingo Takatsu: 9-G, 2.35
            2006 – SS Kazuo Matsui: 130-AB, .200
            2007 – none
            2008 – none
            2009 – P Ken Takahashi: 28-G, 2.96
            2010 – P Hisanori Takahashi: 53-G, 3.61 –
                        P Ryota Igarashi: 34-G, 7.12
            2011 – P Ryota Igarashi: 45-G, 4.66
            2012 – none
            2013 – P Daisuke Matsuzaka: 7-G, 4.42
            2014 – P Daisuke Matsuzaka: 34-G, 3.89
            2015 – none
            2016 – none

Frankly Mike, they haven’t been big spenders in the Latin bonus draft each season. They have been (with their last season stats) -

2016-17:
SS Sebastian Espino - $300,000 – has not played yet
OF Ezequiel Pena - $200,000 – DSL Mets, .103
2B Luis Santana - $200,000 – DSL Mets, .293
OF Jean Carlos Soto - $150,000 – has not played yet

2015-16:
SS Gregory Guerrero - $1,500,000 – DSL Mets, .247
SS Andres Gimenez - $1,200,000 – DSL Mets, .350
SS Shervyen Newton - $50,000 – has not played yet   
     
2014-15:
SS Kenny Hernandez - $1,000,000 – GCL Mets, .203
SS Yoel Romero - $300,000 – 2015 DSL, .194, OOB
SS Edgardo Fermin - $250,000 – DSL Mets, .230
OF Tulio Garcia - $175,000 – DSL Mets, .140
LHP Daniel Guzman - $140,000 – DSL Mets – 3.38
RHP Jhoander Churio - $130,000 – DSL Mets – 2.25
SS Hansel Moreno - $50,000 – DSL Mets, .317

2013-14:
OF Ricardo Cespedes - $725,000 – Kingsport, .322
C Ali Sanchez - $690,000 – Brooklyn, .216
SS Yeffry De Aza - $475,000 – K-Port, .199, Bklyn, .000
SS Luis Carpio - $300,000 – GCL-Mets, .290
RHP Luis Silva - $275,000 – GCL 3.06, Columbia, 2.08
SS Cecilio Aybar - $251,000 – Kingsport, .300

2012-13:
SS Amed Rosario - $1,750,000 – Binghamton, .341
RHP Ronald Guedez - $170,000 – Kingsport, 1.08
SS Franklin Correa - $155,000 – K=Port, .214 -  
3B Walter Rasquin - $140,000 – Kingsport, .294
SS Miguel Patino - $135,000 – GCL Mets, .263
RHP Scarlyn Reyes - $25,000 – St. Lucie, 5.90

2011-12:
C Jose Garcia - $800,000 – Columbia, .200
3B Jhoan Urena - $425,000 – St. Lucie, .225
C Dionis Rodriguez - $185,000 – K=Port, .246, 
LHP Adrian Almeida - $170,000 – K-Port, 6.14
RHP Nicholas Debora - $115,000 – GCL Mets, 4.46
RHP Marcos Molina - $100,000 – DL/St. Lucie

Rosario looks like a future star, and a candle is lit fur Guerrero, Cespedes, and Molina, but, as of right now, none of Sandy’s Latin bonus babies have made it to Queens.


6 comments:

Thomas Brennan said...

Cable was a game changer for team values...that helped drive it higher.

We should have signed Yoan Moncada. We should sign the next one.

Gary Seagren said...

I guess it's just coincidence that the best Latin player of the group was paid the most. I get your answer on the value of the club but lets get real here that's an amazing gain in value and can you even imagine what it would really be worth on the open market...the ONLY National league club in NYC ...gentlemen start the bidding.

Mack Ade said...

Gary -

all the clubs have probably gone up the same percentage over this period of time

Brian Joura said...

Thanks for posting the signing bonus of the Latin guys under Alderson. This is very useful information.

Reese Kaplan said...

The xenophobia and preference to sign retreads is one of many reasons I think Sandy Alderson has let some of the game's realities pass him by.

Adam Smith said...

To Gary's question, my guess is that they believe that their current payroll (plus other operating expenses) gives them room to make a profit if they either make the playoffs or are in a competitive run down the stretch, and to mak a significant profit if they go deep in the playoffs or win it all. My guess is that if they're out of it in September, they'll likely lose money.

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