r/MiamiMarlins • u/northdakotact Italy • 5d ago
Would Sherman keep the franchise for even 5 minutes, if he was forced to spend $175 million on payroll?
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u/Rj9949 Marlins 5d ago
Short answer is yes, teams don’t depreciate in value. His net worth has gone from a reported $800 million to $3 Billion. Why would he sell?
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u/Vegetable-Form1083 5d ago
Part of the reason that they are so valuable is that they can spend $50m on payroll and rake in revenue sharing money. A salary floor of $175m would absolutely depreciate franchise values.
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u/Rj9949 Marlins 5d ago
That’s not correct, there’s only so many sports teams. The lack of supply keeps values high. The average team payroll is between $175-$190 million. There’s still plenty of value at that floor.
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u/Vegetable-Form1083 5d ago
I’m not saying there isn’t still money to be made. But if your cost of doing business goes up $100m and revenue doesn’t match that then you end up making less money.
No floor also offers a level of flexibility for owners that would be lost if a floor was implemented. If ownership decides that earnings potential for the next year/years isn’t where they want it then they have the flexibility to cut payroll to get expenses in line with revenue projections. A hard floor that is significantly above their current payroll removes that flexibility.
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u/Sznappy Eury Perez 4d ago
A hard floor will never be implemented without a hard cap which will have the opposite effect by limiting costs and liabilities
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u/Vegetable-Form1083 4d ago
But a hard cap doesn’t matter to this type of ownership though. They would never get their payroll that high. Their main goal is to make money, not win games. They may try to win games but only because they see it as a means to an end.
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u/Sznappy Eury Perez 5d ago
It would be implemented with a cap which would fix costs and might appreciate values of franchises without the long contract liabilities.
Also it doesn't really work like that because a cap and floor would be based on revenue sharing agreements. We really don't know how that will play out.
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u/Dillweed112 Marlins 5d ago
If he gets the payroll cap, he’ll sell the team. Selling a team with a cap is way more valuable even if there is a higher floor
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u/Techiesarethebomb Marlins 5d ago
He already sold 15% of his stake when the news came out of the proposed floor this season..
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u/Rob086020 Marlins 5d ago
I am doubtful that a salary floor will happen same goes for the roof.
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u/seedyourbrain Marlins 5d ago
They will shut this league down for as long as they have to in order to get a cap
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u/Rob086020 Marlins 5d ago
I hope, also they have to reword the terms that salary can’t be deferred to avoid what the dodgers are doing
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u/Sznappy Eury Perez 4d ago
I go back and forth on this. It’s not new, we celebrate Bobby Bonilla day because the Mets defeated $1M a year for 25 years (a lot in 90s money) and it’s been happening forever.
But they need to make sure the dodgers are paying for that salary in terms of luxury taxes, and only able to defer a small percentage of your yearly salary
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u/brotherinlawofnocar 5d ago
Can he physically afford it?