Money Matters

I’m constantly struck by how so many otherwise intelligent people suddenly sound like idiots when discussing issues related to money. A number of these people are certainly not idiots… they’re accomplished business owners and/or people who have achieved considerable success at running businesses. So if they aren’t as stupid as the words they’re saying makes them sound, one can only assume that they think the people hearing/reading their words are stupid enough to believe what they’re saying.

Yes, I’m referring primarily to the Twins front office.

Owner Jim Pohlad, GM Terry Ryan and President Dave St. Peter

It was over a month ago that the Twins held a press conference and made owner Jim Pohlad, President Dave St. Peter and General Manager Terry Ryan available to the mainstream media. Predictably, the topic of the team’s potential 2013 payroll came up. Also predictably, the Twins brass was non-committal. Here’s an excerpt from the story written at the time by MLB.com’s Twins beat reporter Rhett Bollinger (click here for the link):

Pohlad said that payroll will not be a concern this offseason, but wouldn’t give a firm number on what that will be. The Twins entered the 2012 season with a payroll right around $100 million.

“We’ve never told anybody they have to spend ‘X’ dollars or that they can’t spend whatever they are recommending,” Pohlad said. “So it could go up, it could go down. It’s whatever Terry tells us. We’ve talked about spending in that 50 percent of revenue, but it doesn’t mean Terry will spend that.”

Ryan said that the payroll situation will be fluid and that it should not hinder him from acquiring the starting pitching the club needs to compete next season.

“I think we can quit fooling ourselves that money is the answer,” Ryan said. “We’re going to have to make good decisions to create a pitching staff that’s going to give us a chance.”

Well, I’m glad they put that question to rest, aren’t you? I’m so glad to know that money doesn’t matter.

We don’t know whether the Twins could have made a deal with the Marlins for the same package of players that they dealt to Toronto last week. There’s absolutely no doubt, however, that the addition of Josh Johnson, Mark Buehrle and Jose Reyes would have gone a long way toward addressing the biggest holes in the Twins lineup and the level of players the Jays sent back to Miami certainly could have been made available by the Twins.

So why wasn’t it the Twins that made the deal? I don’t know. But it’s such a friggin relief to know that whatever the reason was, it wasn’t money!

The Twins also lost Scott Baker to the Cubs last week. Baker got a good deal. $5.5 million guaranteed with another $1.5 million in incentives on a straight one year deal. According to the Star Tribune’s beat reporter, Joe Christensen, the Twins were very interested in keeping Baker, but wanted an option year for 2014, which Baker wouldn’t agree to. Again, it makes me feel so much better to know that the reason Baker won’t be wearing a Twins uniform in 2013 had nothing whatsoever to do with money.

Here’s something I’ve learned from working in Corporate America for the past 30+ years: Whenever someone in senior management tells you, “It’s not about the money,” that means that money is exactly what it’s all about.

As Twins fans, we’ve become programmed to just accept the “company line.” We’ve been hearing it since the days of Calvin Griffith and on through the Pohlad era at the Metrodome. Sure, there were hints that having a new stadium and the revenues it would generate might change things, but by and large, the fan base has continued to just accept the, “we’ll spend 50% of revenue on payroll,” line of crap that has always come out of the Twins’ offices.

It has become second nature, to the point where Twins fans seem to almost think that’s how every Major League team does business and we act surprised when other teams behave differently.

The Tigers went to the World Series, but clearly needed to improve at a corner outfield position. They looked for the best option on the market, moved quickly and signed Torii Hunter to a deal that seemed like it was a little excessive, given his age. How can they do that? Won’t that mean their payroll might exceed half of their revenues? Ah, but they’ve got an old owner who wants to win a World Series before he dies, so that’s why they can do what the Twins won’t, right?

The Blue Jays saw themselves needing much the same kind of help that the Twins need. They agreed to take on more years of higher salaries than they might have really been comfortable with, but they made the deal because they want to compete. But that’s ridiculous, right? Boy, they’ll sure regret having Buehrle and Reyes on the payroll toward the back end of those contracts because in a couple of years, their payroll might exceed half their revenues! Ah, but they’re owned by a giant Communications conglomerate and that’s why they aren’t limited as to payroll.

I’ve got a news flash, folks. Every team starts the offseason with a self-examination that identifies what their biggest needs are. The next step for most teams that are committed to being competitive is to identify the best options available via free agency or trades to meet the identified needs. Unless you’re the Rays (who have a whole bunch of financial issues unrelated to the quality of their team), your front office knows that the quality of the product on the field drives revenue.

But if you’re a Twins fan, you’ve been conditioned not to ask who would best fill the team’s needs, but who would fit in to the Twins’ designated payroll limit. That’s because the Twins have historically seemed oblivious to the basic business tenet that product quality drives revenues.

They’ve brainwashed fans in to believing that the only reasonable way to operate a business is by subscribing to the theory that a drop in revenues last year means they must cut payroll next year. It’s time for fans to become deprogrammed from that mindset and let the Twins know that their fan base is not as stupid as the club has treated them as being.

Maybe I’m being premature with this criticism. After all, it’s still early in the offseason and the Winter Meetings are still a couple of weeks away. Terry Ryan may actually sign honest-to-goodness legitimate starting pitchers to fill the Twins’ needs in that area, regardless of the cost. He may make a trade or two that will improve the middle infield, even if it means making his bosses nervous. Maybe he’ll prove that his words about payroll not hindering him from doing his job were more than just more of the same BS we’ve heard for the past decade.

But until the Twins start ACTING like money doesn’t matter, they should stop saying it. It just makes them look like fools… or like they think that’s what we are.

– JC

4 thoughts on “Money Matters

  1. JC, I have enjoyed your last couple of blogs. Personally, I’m a little down about the Twins this off-season. I have started — and stopped — writing posts similar to this because it doesn’t put me in a good mind frame, so I’m very glad to read a finished and well-reasoned piece (that I agree with).

    Sort of branching off of your main point about it not being about the money when it really is, I have been thinking about the Twins’ failure to develop talent at certain positions. Over the past several years, we’ve been blessed (more or less) with the ability to field a competitive outfield without having to pay a guy $20 million a year to play center field. Kirby, Torii, Denard, and even Ben Revere have done well in that position and never completly broke the bank. In other words, we haven’t had to grossly overpay for outfielders. And it’s a trend that I think will continue with guys like Oswaldo Arcia and (hopefully) Joe Benson.

    But what do you do when you consistently cannot develop MLB average or above-average talent at a position? You have to pay market price, whatever that currently is, or you have to trade away prospects that you highly value in order to make up that deficit — if you want to be competitive, that is.

    With the Twins, of course, it’s the inability to develop starting pitchers that is extremely problematic (and middle infielders, too, but to a somewhat lesser extent). It hurts as a Twins fan to think that we could have a cost-controlled outfield for the next few years, but that ownership is seemingly unwilling to “make up” for that financial surplus by investing some extra money in starting pitching.

    Yes, we’re hardly into the offseason, and I hope that I’m wrong. But I am a little nervous that Joe Blanton is going to be our prized starting pitching pick-up this winter.

    OK, I might turn this into a blog post :)

  2. I see you posted your comment over at TwinsDaily, as well, AW. I just want to thank you for posting it here at Knuckleballs. After all, this is the place where we make all our money! (Or, we would make all our money, you know, if we actually got any money around here.)

    It’s interesting, I think, that it wasn’t all that long ago when the Twins felt they had an abundance of PITCHING coming up through the organization and needed hitting! Thus the Matt Garza for Delmon Young trade.

    I’m hoping that some of the college pitchers they drafted last year can become useful starting pitchers, but it’s much too early to know how that will turn out.