A New Investor Means Positive Changes For Guardians? (Fingers Crossed)

Even though Major League Baseball is in lockdown mode (and they don’t seem very anxious in rectifying the situation), fans of the Cleveland Guardians got some good news in the past week.

According to reports, the Dolan family has found a minority owner to take the place of John Sherman, who sold his interest in the team to purchase the Kansas City Royals. The rumor is David Blitzer, who owns shares in the New Jersey Devils (NHL) and Philadelphia 76ers (NBA) and several European soccer teams.

Hopefully, this will inject some capital into the operations of the Guardians, who badly need it, not only in terms of players but we feel in the business operations as well, particularly in marketing and scouting.

We love that Blitzer has experience in professional sports, so perhaps he will share the realization that you need to spend money to make money, a premise known by many people in the business world, but not by the majority owner of the Guardians.

It is no secret the payroll of the baseball team has dropped significantly since Sherman decided to buy the Royals, and we hope having another investor will cause the amount of cash spent on players’ salaries to rise dramatically and hopefully immediately.

Besides the on the field product, we would also like to see an upgrade in the marketing and game day experience at Progressive Field. We know the renovations were supposed to start this off-season, but we would like to see the hiring of more ticket takers and people working concessions stands at the ballpark as well.

The days of frugalness need to end right away.

If you visit this site often, you know how we feel about the Dolan ownership, and you also know we don’t believe for a minute they are losing money. We don’t believe anyone owning a Major League Baseball team is under a financial hardship, despite their claims to the contrary.

We believe one of the reasons fans do not go to Progressive Field is it’s not a fun experience. Hopefully Blitzer (assuming the rumors are true) takes what he learned from his other investments and makes going to a Guardians’ game the thing to do on a warm, summer night in Cleveland, and also does some things to boost attendance during the times when school is still in session.

On the field, the first big decision is with Jose Ramirez. The switch-hitter is one of the franchise’s all-time greats and it would be nice to see one of those types finish his career in a Cleveland uniform.

Remember, Ramirez did not receive a huge signing bonus when he came to the organization, and over the past five seasons, he has been one of the best players in baseball. If he and his agent see this as an opportunity for him to finally get paid, it could be difficult to get a long-term agreement here.

Regardless, the payroll has to increase to a more respectable number.

As part of the investment, Blitzer is expected have the opportunity to become the majority owner when the Dolans decide to sell. Assuming a lease (or by then, a new stadium deal can be put in place) extension. This could be another win for Guardians fans.

For whatever reason (and we don’t buy the reason they give us), the Dolan family decided to take a very frugal approach when it came to running this baseball team, and that wasn’t fair to the fans.

Yes, they had some success, particularly in the last 10 years, but they always seemed to stop short. Hopefully, this deal gets done, and the Guardians can end the longest championship drought in the sport.

Tribe Agrees To Lease, On To Other Worries

Last week, the Cleveland Indians (Guardians) announced they have extended their lease for 15 additional years, through the 2038 season, with options to extend in five year increments beyond that time.

We were concerned about the extension because of all of the other news surrounding the baseball team over the past few seasons, namely the slashing (note, we didn’t use the word cutting) of the club’s payroll for players, and the departure of minority owner John Sherman, who purchased the Kansas City Royals.

We also found the lack of marketing by the team puzzling over the past few years. It was greeted by many fans as a sign the team would not be staying in Cleveland past the end of the current lease in 2023.

The fact ownership didn’t understand this is par for the course, as they are extremely tone deaf to what the fans want.

As part of the deal, the county and state governments are contributing to renovations and the modernization of Progressive Field, which is now 27 years old, which is hard to believe. And hopefully, one of the renovations is changing the eyesore in the right field upper deck.

Funny how the name change was announced and the government ponied up some money, right?

Seemingly each time the Cleveland payroll is mentioned, a corresponding comment is made by the team, and the supporters of the ownership, about the attendance, which has dropped since 2017’s 2.05 million figure to 1.74 million the last time fans were allowed in the ballpark at full capacity for a full season.

Keep in mind, that 2019 is a higher figure than in any year between 2012-16. So, depending on your perspective, more people are coming to games over the past ten years.

Perhaps one problem the team has is in conjunction with having the second lowest payroll in the sport this season, according to ticketiq.com they have the seventh highest average ticket price. We weren’t a business major in college, but we think it is safe to say if people aren’t buying your product, one reason could be that your price is too high.

Surely, they should realize getting 28,000 people at $40.00 per ticket is better than getting 20,000 paying $50.00 to get in, no?

We have said this many times over the past few years, but there is plenty of interest in northeast Ohio’s major league baseball team, the television ratings show that. However, fans don’t seem to want to go to Progressive Field.

If it were our team, we would be doing research to find out why.

Could be ticket prices or it could be the dynamic seating concept, or it could be things like closing the concession stands after the first game of a twi-night doubleheader, closing souvenir stands right after the game concludes, or having problems getting people inside the park?

How many times do you see a Sunday afternoon crowd trying to get in through the gates while the game in starting? Do they think these people also arrive late at movies so they can deliberately miss the first few minutes?

The good news is the Indians/Guardians will be playing on the corner of Carnegie and Ontario through 2038. Hopefully, the World Series drought hasn’t reached 90 years by then.

Why We Are Critical Of Tribe Ownership.

As an homage to Terry Pluto, we are talking to ourselves this week.

Why do you dislike the Dolan ownership of the Indians so much?

Because we believe there is a trust that when you buy a professional sports team, the agreement with the fans is that you will try to win.

We believe the fans of Cleveland understand the market size and the way baseball is structured the large media markets have an advantage, but we feel a payroll in the $100-110 million range should be sustainable.

And when you have a pair of young superstars, both in their prime years, and a very affordable young pitching staff, you should do want you can to win a world championship.

If you don’t want to make the financial commitment, then sell the team. No one is making anyone own a professional sports team.

Do you believe the Indians’ owners are losing money?

We do not believe any owner of a professional sports team is losing money. With the revenue from media contracts and merchandising, we think all owners of professional sports teams are making money, despite what they try to tell us.

If they were losing money consistently, and knew that by selling the team they could triple their initial investment, they would sell. Everyone would.

Do you think the Dolans miss the cash influx of former minority owner John Sherman?

Certainly, and don’t forget it was reported that Sherman had an option to buy the team. Do you think he would want to do that if the team was hemorrhaging cash?

We would have to believe Sherman knew the profit and loss statement of the Indians. And you know wha t he did? He bought another major league team in a smaller market. Unless Mr. Sherman is into burning money…

What about the low attendance at Progressive Field despite the success of the team?

True, it could and should be better. However, we believe it is on the front office to find out why fans don’t go to the park. In the past three years where fans were allowed in Progressive Field, attendance is at its highest level since 2011.

Remember, gone are the days the Tribe can draw more than 3 million fans. With the remodeling of the park, if the Indians sold out every game, attendance would wind up being just a little over 2.8 million fans. If Cleveland drew at the same percentage of capacity in 2019, they’d have drawn 2.1 million.

No one is obligated or forced to attend games. The front office needs to find out why fans don’t go and fix the problem. Have they? We don’t know.

What do you see for 2021 around baseball?

No doubt Major League Baseball teams lost revenue during the shortened 2020 season with no fans. Will teams be forced to make tough decisions on veteran players who are making big cash? Without a doubt.

However, we do not feel all teams will be in a cost cutting mode.

Remember one thing. The CBA (Collective Bargaining Agreement) end after the 2021 season. Complaining about lost revenue and reducing salaries could be a negotiating tactic. Remember, the owners have been found guilty of collusion before.

Anything else you want to get off your chest?

Yes. One thing we do not understand is the defense of the Dolan ownership and their cost cutting ways by some fans. Why do folks not want the ownership to spend as much as they can? Are they part of the accounting department for the team?

One fear they have is that a new ownership group will move the team. Why don’t the current owners extend the lease agreement with the city for Progressive Field?

Keeping the team in Cleveland is the lowest bar for an owner. Would everyone believe these people would be happy with a team that finishes last every year as long as they are still playing in Cleveland.

What about the moves this week?

Very predictable and actually, we have no problem with them. We didn’t think the Tribe would pick up the options on Brad Hand or Carlos Santana, although it wouldn’t be a shock if the latter returned at a lower salary.

If the front office was going to use the money saved here to upgrade in other areas, that would be fine, but instead fans can apparently look forward to their star shortstop being moved in a deal, and perhaps along with the longest tenured Indian, starter Carlos Carrasco.

Hard to imagine the Indians will be a contender for a playoff spot in 2021.

Time For Tribe To Upgrade Roster & Payroll.

Sometimes it seems like the Cleveland Indians can’t get out of their own way.

They have been one of the American League’s best teams in the past 10 years, winning three AL Central titles and making four playoff appearances since Terry Francona became manager in 2013.

Since the wild card era began in 1994, coincidentally aligned with the opening of Jacobs (now Progressive) Field, the only two AL teams with more post-season berths are the league’s behemoths, the Yankees and Red Sox.

Despite all this success in the last quarter century, there isn’t a buzz around the franchise. The current Tribe has two of the game’s most exciting and best players in Francisco Lindor and Jose Ramirez, and fans seem ambivalent.

Not a mention a Hall of Fame manager.

The front office needs to seize the day with this current roster. Besides the duo we just mentioned, the Indians have one of the best starting rotations in baseball, even after dealing two time Cy Young Award winner Corey Kluber.

However, the Indians’ ownership continues to cut the amount of money allocated for payroll. This despite winning 93 games last season.

No, they didn’t make the playoffs, but in many seasons, that victory total gets you a chance to play in October.

We have said many times, Cleveland cannot live in the same payroll neighborhood as Boston and New York. And we aren’t asking them to do so.

In 2018, the Indians’ payroll was $134 million, the highest ever. And yes, we know minority owner John Sherman was involved at that point.

Right now, according to Baseball Reference Cot’s Baseball Contracts, the current 26 man roster payroll in a little under $92 million, that’s a drop of $42 million from two years ago.

And that includes yesterday’s arbitration settlements, meaning Lindor’s $17 million salary for 2020 is included in that number.

Playing devil’s advocate, let’s say the $134 million isn’t sustainable for the Dolan family. Last year, the Tribe’s payroll was slightly under $120 million, according to the same site.

No doubt the Indians will make some minor signings before spring training arrives, so the actual number for 2020 will be around $100 million unless a trade or big ticket free agent signing is yet to come.

This will mean another $20 million will be lopped off the payroll from last season, $34 million has been eliminated over the past two seasons.

That certainly doesn’t indicate to the ticket buying public a commitment to winning a championship, and it absolutely doesn’t get fans in a mode to come out to Progressive Field this season.

As an aside, the schedule maker didn’t help Cleveland either with 16 home games in April, where it will be rare a game time temperature will reach 60 degrees.

It is without a doubt a “chicken or the egg” scenario.

Ownership would like better attendance, and fans want a reason to buy tickets.

Last season, Philadelphia season ticket sales increased by 7% when they signed Bryce Harper. Now, we know the Indians can’t do this (especially with Lindor on the cusp of free agency), but why not do something that creates some excitement around this group of players.

Here’s hoping Chris Antonetti and Mike Chernoff still have one more move up their sleeves before spring training to add a piece (not trade Lindor). They should have some money available.

Perhaps they were waiting for the potential arbitration cases to be settled.

Cleveland sports fans deserve some excitement, especially something not associated with a Browns’ coaching search.

There’s a window of opportunity for the Indians, time to go for it.

Royals’ Potential Sale Should Be A Red Flag For Tribe Fans.

Even though they are in the middle of a post-season race, the Cleveland Indians were involved in off the field news yesterday, both good and bad.

The good was the announcement that Carlos Carrasco would be activated on Sunday when the rosters will be expanded, barring any problem with his rehab assignment today in Columbus.

Carrasco will pitch out of the bullpen during September, and he could be a big weapon in relief, potentially as a set up man for Brad Hand.

The other news should be concerning and it isn’t getting a lot of play from the local media.

John Sherman, who joined the Indians as a minority owner in 2016, appears to be close to buying the Kansas City Royals.

Sherman is from KC, and reportedly has been a Royals’ season ticket holder for many years.

If you are someone who is skeptical about the Dolan family ownership of the Indians, you are probably alarmed by this news.

It is not a coincidence that the spike in the Indians’ payroll in 2017 and 2018 came after Sherman bought a piece of the franchise. It has been reported by MLB.com that the minority owner was responsible for that spike.

Rumors that Sherman was no longer part of the organization surfaced in the spring when the payroll was cut from the 2018 level, but in retrospect, the reduction is salaries came from the news that Sherman was in negotiations to buy the Royals.

That should, in itself, be a huge warning signal about the future salary expenditures for the Cleveland Indians.

After trimming $15-$20 million off the payroll a year ago, could there be a similar reduction this winter? After all, the Dolans will have to buy Sherman out assuming he buys the Royals, and we are guessing that’s a substantial amount of cash.

Also, whether they win the AL Central Division or not, the Indians will be one of the top five or six teams in the league after the season, and could be making their fourth consecutive appearance in the post-season.

We have seen the effect on attendance after the payroll trim last season, can you imagine what will happen if let’s say management doesn’t bring back Corey Kluber and heaven forbid, decides to trade Francisco Lindor because the want to pay less in salaries than they did in 2019?

Before you say we are over-reacting, if the reason for the high payrolls in ’17 and ’18 were because of Sherman, then can’t you infer another cut is coming? Certainly, there will not be an increase in the players’ salaries.

Will the Dolans look for another investor to take Sherman’s place, or will Sherman sell his shares in the Indians to another person who is willing to spend?

Remember, the mega trade at the deadline which moved Trevor Bauer for what appears to be a huge haul, actually saved the Tribe money in 2019. It wasn’t a financial move to “go for it”.

So, keep an eye on these Kansas City negotiations. A close eye. Because the near future of the Cleveland Indians franchise and the Dolan ownership should be under close scrutiny.

Or maybe this is the first step in a full sale of the franchise. Either way, it should be concerning for Tribe fans.