Opening of the Books....Unfortunately, No Conspiracy to be found.

Its long been thought by many a yinzer that Bob Nutting is some nerdy combination of C. Montgomery Burns and Scrooge McDuck lining his pockets/bank vault with money that should be spent on his team's payroll. As good of a story as below would be, it appears it really isn't the case.

Instead of swimming in his money, Nutting and the Pirates seem to have some real revenue questions and not a lot of room for error in their never-ending quest to be a contender. But didn't we know that already? 

Here are some links to different perspectives/analysis.  

First the background of the story:

The original Post-Gazette article: For the most part, just a rehashing of what the Pirates presented to the media yesterday. 

The AP story that prompted the Pirates "getting out in front of the story:" Nothing really said here that wasn't said by the Pirates in Dejan's article. Just twisted differently.

The actual line by line financial statements for the Pirates and other teams that were leaked: A lot of interesting info here including the dramatic differences in gate and broadcasting revenues between teams. 

What does this all mean?

Bucs Dugout says the whole situation doesn't nicely fit the Bob Nutting is evil media narrative. A very good discussion in the comments here as well.

Pirates Prospects breaks the situation down a couple of different ways here and here. They have the same concern I do. How can the team consistently raise the payroll with these numbers? I would have much rather seen this leak of info show that Nutting was taking 50 million a year in profits like the conspiracy theorists have long thought. Instead it appears any "meaningful" increase in payroll is going to have to be offset by an increase in revenue or decrease in spending somewhere else (as it appears the team is not interested in losing money).

Pittsburgh Lumber Company takes issue with some of the "nonsense" in the AP article.

Where Have You Gone Andy Van Slyke comments on his changing perception of the Pirates' finances since Nutting/Coonelly/Huntington took over.

Rocco Demaro weighs in with a practical estimate on what the profits would have brought the Pirates if they spent every dime on the MLB payroll. Hint...it wouldn't have made much of a difference the last couple of years. Spending on the amateur draft and using the profit to pay down debt is a much better use of funds while rebuilding.

The Biz of Baseball compares and contracts financial info from all of the teams leaked on Deadspin. 

And Finally:

People have complained for years that the Pirates wouldn't open their books. They did (although not exactly voluntarily). The statements show that they made profits but not the significant profits critics had been claiming. 

So, critics need a new spin. I assume that spin will be the need to sell to Lemieux/Burkle cause they are "proven winners."

Of course, those same people conveniently forget the endless money troubles the Penguins had (before and with Mario as the owner) before they literally won the lottery with Sidney Crosby, had a hard salary cap implemented across the league, and leveraged potentially leaving the city (a lot more seriously than the Pirates or Steelers did in the late 90s) to get their new arena. Their just isn't enough in this market to spend anywhere near what other teams in places like NY do if there isn't a system of checks/balances in place. Baseball doesn't have that. Hockey now does. That (and the luck of the ping pong balls) is why the Pens have been successful. Not because Mario is a financial genius.

Don't get me wrong, I love the Penguins and everything that they have accomplished. The Consol Energy Center was actually the most practical and necessary of the three new facilities due to its extensive non-Penguin use.  However, lets not pretend Mario has always had the golden touch.  Before Crosby or Malkin arrived, 11,000 people went to the games to cheer on prospects like Rico Fata, the Pens had the lowest payroll in the league, and the ticket sales department I was working in didn't have enough budget to get us envelopes or pens. Besides the shortages of office supplies, doesn't that sound pretty familiar to the current Pirates situation? Actually, the Pirates young guys now are probably better than the Pens prospects in the early 2000s. 

The main difference? There is no Sidney Crosby coming via lottery to the Pirates immediately to get them out of the hole. But there is talent coming. It just takes time now that they are finally doing a proper rebuild.