Gabriel Amer & Kaylee Apicella
Mr. Held
Economics Period 2
May 25th, 2017
PNC Park
Do you ever feel like a lonesome baseball, flying through the wind wanting to be caught again?- Katy Perry./ Have you ever thought,for some odd reason about PNC Park’s Financial standings? How much the park generates on Merchandise? Or how much the Pittsburgh Pirates get paid in salary, Renovation expenses, and Advertising?
As far as Merchandise and costs goes, PNC Park sells tickets for around $18.36 so if the Pirates keep 90% of the Revenue, nearly 100,000 fans would result in $1.8M of additional revenue. Not to mention, on average each fan spends around $25 on food or merchandise each game making the parks earnings in at $2 million in revenue. (Pittsburgh …show more content…
In 2013, the revenues for the digital service arm of MLB were $650M. Every team owns an equal share of MLBAM. League-wide merchandising/licensing — If a video game has the Pirates, if a Cutch jersey is sold in Idaho, the Pirates will get a cut of that MLB’s Investment Portfolio — When the Expos were owned by MLB, then sold to the Lerner family to become the Washington Nationals, the profit from the sale (about $330M profit) was parked into a hedge fund in 2006. Each team is an equal shareholder and, presumably, gets a cut yearly from the Baseball Endowment L.P. General Revenue Sharing — The Pirates are one of the “poor” teams in MLB, so they’re getting a cut from MLB to attempt to level the playing field. This comes from teams like the Yankees and Dodgers going over the $189M payroll threshold and having to pay a tax to MLB. All local TV deals get a small cut sent to MLB Central and they re-distribute it to certain teams like the Pirates. Radio rights — It’s probably not a lot, but the Pirates aren’t letting 93.7 The Fan broadcast the games for free. Local sponsorships — All the ads on the walls, the PNC naming rights, any company you see at PNC — they paid some money for that privilege. Suite rentals, event rentals — Ever go to a suite for a Boys Night Out or to get pitched by a vendor on some product you’ll never buy? They paid for that. Ever go to a wedding or other event at PNC? (I went to a wedding last fall). They paid for that. It all adds
Mr. Held
Economics Period 2
May 25th, 2017
PNC Park
Do you ever feel like a lonesome baseball, flying through the wind wanting to be caught again?- Katy Perry./ Have you ever thought,for some odd reason about PNC Park’s Financial standings? How much the park generates on Merchandise? Or how much the Pittsburgh Pirates get paid in salary, Renovation expenses, and Advertising?
As far as Merchandise and costs goes, PNC Park sells tickets for around $18.36 so if the Pirates keep 90% of the Revenue, nearly 100,000 fans would result in $1.8M of additional revenue. Not to mention, on average each fan spends around $25 on food or merchandise each game making the parks earnings in at $2 million in revenue. (Pittsburgh …show more content…
In 2013, the revenues for the digital service arm of MLB were $650M. Every team owns an equal share of MLBAM. League-wide merchandising/licensing — If a video game has the Pirates, if a Cutch jersey is sold in Idaho, the Pirates will get a cut of that MLB’s Investment Portfolio — When the Expos were owned by MLB, then sold to the Lerner family to become the Washington Nationals, the profit from the sale (about $330M profit) was parked into a hedge fund in 2006. Each team is an equal shareholder and, presumably, gets a cut yearly from the Baseball Endowment L.P. General Revenue Sharing — The Pirates are one of the “poor” teams in MLB, so they’re getting a cut from MLB to attempt to level the playing field. This comes from teams like the Yankees and Dodgers going over the $189M payroll threshold and having to pay a tax to MLB. All local TV deals get a small cut sent to MLB Central and they re-distribute it to certain teams like the Pirates. Radio rights — It’s probably not a lot, but the Pirates aren’t letting 93.7 The Fan broadcast the games for free. Local sponsorships — All the ads on the walls, the PNC naming rights, any company you see at PNC — they paid some money for that privilege. Suite rentals, event rentals — Ever go to a suite for a Boys Night Out or to get pitched by a vendor on some product you’ll never buy? They paid for that. Ever go to a wedding or other event at PNC? (I went to a wedding last fall). They paid for that. It all adds