Here's a story that will make you puke, especially if you're a Pirates fan or a fan of a low payroll, small market team:
.....
The Pirates made nearly $29.4 million in 2007 and 2008, according to team financial documents, years that were part of a streak of futility that has now reached 18 straight losing seasons. The team's ownership also paid its partners $20.4 million in 2008.
The documents offer a rare peek inside a team that made money by getting slightly less than half its income (about $70 million) from MLB sources — including revenue sharing, network TV, major league merchandise sales and MLB's website. The team also held down costs, keeping player salaries near the bottom of the National League, shedding pricier talent and hoping that untested prospects would blossom.
.....
"The numbers indicate why people are suspecting they're taking money from baseball and keeping it — they don't spend it on the players," said David Berri, president of the North American Association of Sports Economists and the author of two books detailing the relationship between finances and winning. "Teams have a choice. They can seek to maximize winning, what the Yankees do, or you can be the Pirates and make as much money as you can in your market. The Pirates aren't trying to win."
.....
By 2010, the Pirates had baseball's lowest opening-day payroll — $34.9 million or just $2 million more than in 1992, the club's last winning season. The Pirates run of consecutive losing seasons is now the worst in the history of major American pro sports teams. They lost their 83rd game of the year Saturday to the Mets.
Pirates officials say they are trying to field a competitive team, and that there is nothing nefarious in the team's financial dealings. MLB backs them up, saying Pittsburgh has complied with the rules for revenue sharing, which are supposed to help less well off clubs compete with likes of the New York Yankees and the Boston Red Sox.
Still, Pittsburgh fans have long complained that the club's various owners have been more interested in profits than performance, and top sports economists who reviewed highlights of the team's statements wondered if it now makes more money losing than it could by winning.
.....
To cut payroll, the Pirates have shed former All-Stars Jason Bay, Freddy Sanchez, Nate McLouth and Jack Wilson in trades, along with nearly every other player who was arbitration eligible — or close to it — or free agency: Tom Gorzelanny, Ian Snell, John Grabow, Xavier Nady, Adam LaRoche, Damaso Marte, Nyjer Morgan, Ronny Paulino and Sean Burnett.
They also dealt slugger Jose Bautista to Toronto for a backup catcher who has since left their system, and cut NL All-Star closer Matt Capps without getting anything in return because he sought a $500,000 raise.
.....