Not sure this has been posted but its a write up from a New York Paper that claims Jays should maybe be considered a revenue sharing team.
https://www.nydailynews.com/sports/baseball/ny-madden-blue-jays-20210130-yuqxdwepcvahtneuhitq3dr3bu-story.html?fbclid=IwAR1pi8DmeIT_qYlysrwvUZTmiDmbkELug1pEhSNq09wXWteWDttzZS9BFTk
How in the world are the Blue Jays paying for all their offseason acquisitions?
This has been quite a winter for the Toronto Blue Jays, a team without a home. The $189.7 million they’ve so far spent on six new acquisitions, center fielder George Springer, infielder Marcus Semien, starting pitchers Robbie Ray and Steven Matz, and relievers Kirby Yates, Tyler Chatwood, has got baseball all abuzz.
But while the Blue Jays’ aggressiveness during a time when baseball remains under a cloud of financial uncertainty because of the COVID-19 pandemic may have gotten their fan base super hyped, rival clubs who have been forced to scale back their winter aspirations dramatically after incurring substantial losses in 2020, are wondering just how the Blue Jays are paying for all this?
Just about every team in baseball lost about $100 million last year due to the shortened season and the absence of fans in the stadiums. There were virtually zero revenues from ticket sales and concessions while TV and radio revenues were reduced by nearly two-thirds and will require rebates from the clubs to their networks for the lost games. Even though MLB continues to insist spring training will be starting on time, there is no certainty about that or when fans will be allowed in the stadiums. In the case of the Blue Jays, because of the Canada travel ban, even if the season is able to start on time, they will likely have to be playing their home games in their spring training ballpark in Dunedin which seats approximately 6,000 at full capacity.
The Blue Jays are justifying their spending binge on the fact that they needed to supplement their budding young nucleus, shortstop Bo Bichette, first baseman Vlad Guerrero Jr., third baseman Caban Biggio and outfielders Lourdes Gurriel Jr. and Teoscar Hernandez — whose service clocks are all ticking — in an effort to make a few deep postseason runs while they’re all still in their primes and affordable. Even though they are owned by the multi-media colossus Rogers Communications, the Blue Jays do not presently pay revenue sharing because their revenues are based on what the team itself generates.
There is speculation that Rogers Communications, which also owns the TV and radio rights to the Blue Jays games, forgave the rebate owed them by the team for the loss of all the games last year, which was as much as $75-100 million. If so, that would be considered outside revenue, and it’s understandable if the rest of the teams in baseball — particularly the large market clubs like the Yankees, Mets, Phillies, Red Sox and Cubs who will be paying revenue sharing in 2021 — could be feeling they have subsidized all this Blue Jay spending this winter.
There is a mechanism called a related party review for which MLB examines all the teams’ revenue streams in determining the revenue sharing payers. Because there were no revenues in 2020, it was decided revenue sharing for 2021 would be based on the average of the clubs’ revenues for the ’17-’18-’19 seasons. However, other teams are said to be asking for a review of the Blue Jays’/Rogers situation: Specifically, if Rogers Communications, the Blue Jays’ holding company, is allowed to plow unlimited amounts of money into the team, that is considered revenue and subject to revenue sharing. Otherwise, the Yankees, Red Sox and Dodgers could have the same thing this winter with their respective partially-owned networks, YES, NESN and SportsNET LA.
I’m told the six years/$150 million the Jays gave Springer particularly consternated other clubs since, despite bidding against themselves once Steve Cohen and the Mets reportedly dropped out at six years /$120 million, the Jays still gave Springer the number he was asking for.
Meanwhile, for all their splashy additions, even the Jays themselves are conceding they need two more proven starting pitchers to back up Hyun Jin Ryu if they are to make a serious run into the postseason this year. Until proven otherwise, both Matz and Ray, with all their inconsistencies, remain projects for Jays’ highly regarded pitching coach Pete Walker. The Jays have remained engaged with the ever-tantalizing but much injured James Paxton, who they originally drafted but failed to sign in the first round of the 2009 draft, and they also continue to talk with Jake Odorizzi.