Oriole Economics 101
Orioles officials are returning from Sarasota, Fla., where they spent the past four days in organizational meetings aimed at positioning the team to make trades and compete for free agent players this winter. Andy MacPhail was basically getting all of his ducks in a row, but you have to wonder if the worldwide economic downturn will impact the team's budget.
The Orioles are in the midst of an economic downturn of their own. Total attendance dropped below two million this year for the first time in the history of Camden Yards and viewership of the team's regional sports network has been disappointing. This might be the ultimate case of needing to spend money to make money, but it's going to be hard to project revenues going forward because of the effect the greater economic crisis might have on the team's fan base, which could have a chilling effect on any payroll increase.
I'm pretty sure the Orioles can afford to add a couple of starting pitchers and sign a shortstop, but we'll have to wait and see if they're still willing to do so.






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Comments
Unless I'm mistaken Mr. Angelos has a few bucks saved from a couple of lawsuits. And MASN gets a set fee for being part of cable or satelite packages per customer. Crying poor isn't going to get much sympathy from fans after the last 11 years.
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Pete's reply: I think he knows that. He's actually pushed Andy to be more aggressive acquiring players, but I'm wondering if the conditions "on the ground" have changed in the past few weeks.
Posted by: Satyr3206 | October 10, 2008 1:34 PM
Invest 8 million in a catcher who seemed to dog it most of the season or the stock market when he signed the contract. Seems like a wash to me.
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Pete's reply: I disagree. The stock market has a chance to bounce back.
Posted by: Rusty | October 10, 2008 1:35 PM
Pete you can bet that they will use that as a excuse when they don't do anything.Now Angelo's can say that that the recent economic trend has severely handicapped any moves that they contemplated making.But in reality you can bet that if this continues for much longer there will be a severe impact on all sports.
Posted by: bob lancione | October 10, 2008 1:45 PM
Pete you can bet that they will use that as a excuse when they don't do anything.Now Angelo's can say that that the recent economic trend has severely handicapped any moves that they contemplated making.But in reality you can bet that if this continues for much longer there will be a severe impact on all sports.
Posted by: bob lancione | October 10, 2008 1:46 PM
just being good won'r produce big, sell-out crowds right away. look at the rays, who were in first place most of the season, and they had like 3 sell-outs during the regular season, and a few more will occur in the postseason.
just goes to prove that the fans won't be coming back in droves right away if the o's are suddenly good, even if Baltimore is more of a baseball town then Tampa
Posted by: Chuck Diesel | October 10, 2008 2:18 PM
Any chance they can sign SP's who can make it through September? How about a SS who can hit (MLB pitchers) and field? I think fans need to forget Tex..he had a chance to sniff the playoffs.
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Pete's reply: The plan is to sign or trade for two solid veteran starters, but that's easier said than done. The O's will get a SS, but I don't know who it might be.
Posted by: Chris | October 10, 2008 2:24 PM
Sorry Mr. Schmuck, but you lost me with your comments in response to the Palin on Ice comments. In my opinion, your comments were out of line for a sportswriter. I might come back and read your stuff in the future, but I probably will not.
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Pete's reply: Are you really that sensitive? I was told that the blogosphere was like the Wild West, where anything is fair game (within reason). Frankly, though I appreciate your participation, if you don't have the stomach for somebody disagreeing with you, I'm not going to shed any tears at your departure. I like a lively conversation and I'm not going to censor myself because some fans aren't tough enough to handle it. I'm tough enough to take criticism every day in this blog -- and I post all of it unless it libels someone else or includes words I'm not allowed to publish -- so I expect no less for from you. If you can't stand the heat, go ahead and get out of the kitchen.
Posted by: Almost Believin' | October 10, 2008 3:26 PM
Just tossing this on the record before the Ray-Sox series starts.
Tampa is making a mistake starting Kazmir in game 2. The way he has been pitching the last 5 weeks they need to move him to game 3 in Boston against Lester and just punt on that game. If Kazmir gets lit up in game 2 that puts the Rays in a bad way in the series.
Posted by: Jeff V. | October 10, 2008 3:31 PM
Hey Pete,
I hope Kendal is getting residuals for giving you today's blog topic.
Noticing the post time of the blog, it's nice to know what goes on during commercial breaks.
I love C4 Fridays.
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Pete's reply: I'd like to give her credit, but I posted that before the show and scheduled it for the middle of the show. I wish I was good enough to be on the radio and write at the same time, but I'm not. Thanks for listening. It's a fun show.
Posted by: Ken | October 10, 2008 3:59 PM
Speaking of attendance, how do you explain Baltimore drawing more paid fans than Tampa Bay, the division winners? Plus, TB had two more home dates than the O's. Is baseball dead in Florida?
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Pete's reply: Yes, to an extent, though the Rays might do okay if they keep winning and get a new ballpark. They'll never draw at the Trop.
Posted by: riverside | October 10, 2008 4:33 PM
If you were a free agent would you want to play for Angelos?
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Pete's reply: Depends on the money.
Posted by: jon dey | October 10, 2008 5:05 PM
Quoted text :" If you were a free agent would you want to play for Angelos?
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Pete's reply: Depends on the money."
In light of the current downtrend in the NYSE and the collapse of our banking system, Mr. Angelos has BILLIONS of dollars from tobacco and asbestos and fen-phen and MASN etc. You can best believe he made even more money by shorting the market just like the rest of the big boys did.
He can afford to buy Sabathia, K Rod, Vladdie. All are FA this year. Even if we can't win next year, lets at least look good at trying to do it. The Sept. implosion was just waiting to happen. When we lost Albers was the break point. Then we just gave up Bradford... For my favorite... Player "to be named" Later. Then Rocky Cherry blew a few games fors us when we needed em. Get rid of that guy! But what we really need are 3 marquee SP and 2 big bats to work with what we've got if we are at least going to fool ourselves in believing again..
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Pete's reply: Peter's got plenty of money, but I doubt he is somebody who plays the market like a mogul. He has a lot of his money in real estate and invested in the law firm. I'm not sticking up for him. I'm just wondering if the economy will give them cover to hold off on a big free agent expenditure until next year.
Posted by: Jay | October 10, 2008 5:59 PM
Way to dish on 'almost believin' Pete, agree or disagree fine, but some people get their panties in a bunch. Keep on bloggin, we'll set you straight or argue it to death.
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Pete's reply: Thanks, but I'm a bad guy to talk politics with right now, because I'm mad at everyone.
Posted by: PunkFlamingo | October 10, 2008 7:18 PM
Pete, Mr Angelos is a smart lawyer (is that what you call your oximoron?).I'm sure he knew that you couldn't sabotage your own team and then expect anything in return but losing games, losing fans, losing TV dollars. In today's MLB you either spend a hugh amount of money or look forward to 11 more years of losing and probably less than 1 million fans in a couple of years. Then because the fans aren't spending good money on a bad product, he ups and sells the team (for a big profit) and they MOVE
Posted by: NORM | October 10, 2008 7:18 PM
I also missed the not so subtle dig on a certain catcher the first time around. Way to say what all the fans are thinking. You got a pair I'll give you that!
Posted by: PunkFlamingo | October 10, 2008 7:27 PM
J J Hardy is available due to a hotshot SS prospect named Escobar. Would you be willing to trade a top prospect like Arrieta plus other decent prospects(Bergeson,Reimold,etc)? He's 26 and would solve the problem for a long time.
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Pete's reply: Yes!!!!!
Posted by: eric | October 10, 2008 7:30 PM
It the owners who committed to big contracts within the last few years who should be worried.
This year's owners will get a discount, because almost every owner will be facing the same economy. However, the Yankees are exempt. They'll have the benefit of a new stadium. People will find a way to go there.
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Pete's reply: The Yanks will always be somewhat exempt. You're right about the rest. This could push prices down, though it's not a standard supply/demand market.
Posted by: CTFan | October 10, 2008 8:20 PM
Hi Pete,
please educate me on JJ Hardy.
I would hate to lose Arrietta!
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Pete's reply: Solid Brewers shortstop who has averaged 20 homers over his three full seasons (not counting injury-shortened 2006 season). He might be available because have another solid shortstop getting ready to pop. Wouldn't want to deal Arrieta, but they would have to give up a top pitching prospect to get a good young shortstop.
Posted by: John from Kensington | October 10, 2008 9:50 PM
Pete,
I believe I've stated my thought before on the FA picture, but since it's a topic on the horizon, here goes.
We need to be fiscally prudent. Yeah I know that Angelos has the money. But to be truthful, FA's are looking for a place to possibly get a ring along with all the greenbacks. How they gonna do that here in the next couple of years? Most teams that spend money on FA's don't end up winning the World Series, or even making it there! Notice I said "most". Angelos has spent money in the past, despite what bob lancione wants everybody to believe. He just hasn't spent it wisely.
Overspending for Teixeira is not the answer. And it shouldn't be. If we had the pitching in place, I'd say yes, go for the big fish. But anyone here thinks we can do that is delusional. Get 2 starting pitchers thru the FA route, perhaps Byrd, Lowe or Loshe.
Lastly, keep the young pitching in tact. Go find a serviceable SS option through a trade (young mid level prospect), and forget about JJ Hardy. Let's draft and develop our own top notch SS. You don't trade your pitching prospects until the system is flush with talent, and our ML level is in good shape. Anyone think we are there yet?
Posted by: TX O's Fan | October 11, 2008 11:00 AM
Pete,
Give us a break! I know your working on the expectation management principal but, I would think the economy has impacted all the owners equally. How is it that ambulance chasing lawyers are the most severely impacted? Peter Angelos OWES the Oriole Nation and the Cresent City his best effort, nothing less. Andy has done a great job starting the re-engineering effort give him the resources to get the job done!
Posted by: Keith Rowe | October 11, 2008 11:54 AM
Pete,
The question for Peter Angelos is this: Does he want the O's to be the next Pittsburgh Pirates or the next Tampa Bay Rays? What the O's do in this off-season, such as sign Nick long term, sign or trade BRob and acquire some serious pitching, SS and make a run at Tex will tell us all. As the economy turns down, like any business, we will all be able to tell by their actions, not their words! Git r dun!
Posted by: Keith Rowe | October 11, 2008 12:04 PM
Pete,
TX O's Fan is absolutely, positively right on track to have the O's streak of non World Series appearances matching the Texas Rangers. The FA market is what it is, if everyone recalls, we have confederate dollars, unless we grossly overpay, no one would go to Baltimore. I love the draft, we have done some good and some not so good. Considering how bad we've been for so long, to think the only outstanding everyday player ready is a catcher, that may have been good enough to come straight to the majors! All the pitchers were stockpiling, most haven't produced at the ML level and most have arm problems, so for drafting where we have we have little to show for it. Using TX O's Fan theory, the O's will become synonomous with the CUBS, 100 years and waiting. Realizing that Mora, Huff and Roberts are in the final years of their contract and that the O's offense was as good or better than 2 of the 4 AL playoff teams, they need to aggressively get a #1 pitcher and an inning eater to go with a SS. Maybe a good hitting DH and let Huff play first.
Posted by: Keith Rowe | October 11, 2008 5:30 PM
Pete: I would not give up any of our young arms for a SS. The fastest way to respectability is to stockpile pitching. We won't win in 2009 or 2010, so limp along with a budget SS for the next two years, let the AA pitchers develop, and see what we need from the free agent market before the 2011 season. We should also beef up the scouting department. If you want to depress yourself, take a look at the Orioles first round draft choices for the last 15 years. Talk about a waste land.
Posted by: BaltoBen | October 11, 2008 6:05 PM
Pete , here's a good barometer for when the Orioles will be competitive again . .When their entire pitching staff equals the investment the Red Sox have in one pitcher ( Dice-K ). about 110 mil . when that happens , I'll start watching again.
Posted by: jimmy swift | October 12, 2008 8:37 AM
Sarah Palin would make an EXCELLENT ball girl! That's her real calling if you ask me.
Posted by: Mojito | October 12, 2008 10:20 AM