Boston Red Sox Gambling Ownership Withstands Financial Turmoil
With no salary cap in Major League Baseball, certain teams have made commitments to huge payrolls over the next few years. But, as the recession deepens, it becomes clear that team owners find their financial situation much less sturdy than only months ago. Sports gambling oddsmakers are watching closely to see if turmoil at the top filters down to the big-market team rosters, wondering if the market will even a playing field the leagues could not.
One of the biggest spenders is the Boston Red Sox. With a projected payroll next year at north of $120 million, only the New York Yankees are expected to pay players more. But recently, the New York Times Company has begun looking for a buyer for its share of the team, which is almost twenty percent.
The Times itself is facing big liquidity problems, and needs to convert assets to cash. Depending on the emergence of a new owner, the Red Sox payroll may be affected. Certainly the Times has no more money to sink into the operation. Unless a cash-rich purchaser is found, strong influences may lead to the Red Sox cutting payroll as soon as this year.
The Times Company is reporting that revenue was down 13.9 percent in November, and 7.6 percent for the year.
The New York Mets have also been big spenders lately, signing expensive relievers Fransisco Rodriguez and J.J. Putz. But ownership is caught up in the pyramid investment schemes of Bernie Madoff, and the long-term effect of that collapse is yet to be measured.
Both teams are expected to be favorites to win the 2009 World Series, but sportsbooks will likely tread carefully with early lines, while the teams sort out their financial messes. Gamblers at Las Vegas casinos and online gambling sites will need to be equally careful when betting future plays.
