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| Gary Tramontina, Associated Press Pittsburgh Pirates owner Kevin McClatchy Click photo for larger image.
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The Post-Gazette reported Sunday that the team's projected profit for 2005 will be $12.8 million after it brings in an unprecedented $18.1 million or more through Major League Baseball's revenue-sharing system.
McClatchy did not dispute that the profit could reach that level, although he noted that taxes, interest, debt payment and an in-season increase in payroll likely would lower the figure to $3 million. He also did not dispute other figures in the article.
He did, however, take strong exception to quotes from two prominent sports economists, Andrew Zimbalist and Allen Sanderson, who suggested the Pirates' owners are keeping the extra money.
"I didn't like the insinuation that I was taking money out of the team and sticking it in my pocket," McClatchy said by phone from his PNC Park office. "I definitely didn't pocket any money. I've got other investors to answer to. That would be illegal. That's Enron stuff. All of the team's profits are going right back into the team."
Zimbalist said for the article that it is common among low-revenue teams not to put revenue-sharing into player payroll, adding, "That's what's happening in some places, and I wouldn't be surprised if McClatchy was doing it." Sanderson said, "You could have an owner who says, 'Hey, I can go to the bar and put nine drunks out on the field and maximize my profit.' "
McClatchy expressed indignation at the notion that he is content to field a losing product.
"Anybody who knows me knows I'm not like that," he said. "This team needs to win. And we need for that to happen soon. Fact is, if we don't win and the All-Star Game comes and goes next year, we're going to have a lot of people jumping off the wagon."
McClatchy said that the Pirates have used their revenue-sharing money -- which Major League Baseball stipulates must be spent to "improve performance on the field" -- mostly on player development. He said the team has boosted spending on scouting to the point it ranks in among the upper third in all of baseball and that the team has increased its presence in the Dominican Republic and Venezuela.
"The money is going back into the system," he said. "That's where we have to put our money, into improving our own talent."
McClatchy reiterated that he and his fellow owners have no plan to put the Pirates up for sale, adding his view that not even a significantly wealthier owner could make a difference in Pittsburgh.
"Our player payroll is budgeted at $40 million. You're not going to find a billionaire to subsidize $30 million in losses to get that payroll up to $70 million."
The problem, he said, is baseball's skewed economic system that has the New York Yankees at one extreme with a $197 million payroll and the Pirates currently at $33.6 million.
"The system needs to be fixed. This is the big issue that we're facing, and we plan to address it."
The immediate concern, McClatchy said, is improving the current team's performance, which he characterized as disappointing.
He offered support for Lloyd McClendon, whose contract expires after this season -- "I don't have a problem with my manager's work" -- but said he was puzzled by the falloff in production from several individuals, notably Oliver Perez, Craig Wilson and Tike Redman.
"We have guys who aren't doing what they've done in the past. But it's only a month into the season, and I don't think we should measure this team by how it's doing right now."