Why is DeWitt so cash-strapped?

[Cranny]

He isn't cash strapped..simply not willing to spend it on payroll at this time.

Daze - Do the math. Look at revenues, operating income, value of the franchise, debt as a % of value, probable interest rate, etc. Then look at interest dollars alone that are probably paid, not including any principal reduction. The interest payments are close to twice the operating income.

[Goldfan]

When allocating needed money to improve the Cardinals. Isn't he a billionaire? The Dodgers spent $300 million this season on salaries. They've won the last two World Series. The Cardinals haven't even been to the playoffs for the last three seasons. DeWitt needs to put 2 and 2 together.

I’m all for spending as long as it is done WISELY.
You don’t just spend for the sake of spending!
Who do you propose they spend the $$ on?????

And now he finally has a POBO who (hopefully) will spend it wisely unlike the former POBO who wasted hundreds of millions of his payroll dollars.

Exactly, Cranny always chiming in with lower Rev…..big markets have so much money
How about not spending as STUPID as MO did for YEARS….that’s the other side of the coin. 2 sides to the financial ledger

Fowler 70mil Wasted
Carp 45Mil Wasted
Miller 39mil Wasted
MIles 50mil Wasted
Matz 36mil Wasted
And Gray at 30mil for 5’10 180 guy who can’t pitch in the heat past his 35th birthday is insane
What 2-3 actual ALL-STAR could’ve been signed to long term contracts instead of wasted on several either NO return or very little return.

I once tallied it up GF, Mo wasted nearly $500M on stupid free agent signings and extensions.

Rock, I’ve been banging this drum since the Carp extension….all this Revenue, Big Market [nonsense] is a canard. This real story explaining the Cards downturn
Has been internal management. As you state the waste of money for little to no production is off the charts.

[Goldfan]

He isn't cash strapped..simply not willing to spend it on payroll at this time.

Daze - Do the math. Look at revenues, operating income, value of the franchise, debt as a % of value, probable interest rate, etc. Then look at interest dollars alone that are probably paid, not including any principal reduction. The interest payments are close to twice the operating income.

Busch III was completed and I assume financing in place for the 2006 season. The Foxsports local TV contract that everyone is crying over all the time was signed in 2018. So square that one up Cranny……
And let us know how much tickets and concessions have gone up since 2006???

[rockondlouie]

When allocating needed money to improve the Cardinals. Isn't he a billionaire? The Dodgers spent $300 million this season on salaries. They've won the last two World Series. The Cardinals haven't even been to the playoffs for the last three seasons. DeWitt needs to put 2 and 2 together.

I’m all for spending as long as it is done WISELY.
You don’t just spend for the sake of spending!
Who do you propose they spend the $$ on?????

And now he finally has a POBO who (hopefully) will spend it wisely unlike the former POBO who wasted hundreds of millions of his payroll dollars.

Exactly, Cranny always chiming in with lower Rev…..big markets have so much money
How about not spending as STUPID as MO did for YEARS….that’s the other side of the coin. 2 sides to the financial ledger

Fowler 70mil Wasted
Carp 45Mil Wasted
Miller 39mil Wasted
MIles 50mil Wasted
Matz 36mil Wasted
And Gray at 30mil for 5’10 180 guy who can’t pitch in the heat past his 35th birthday is insane
What 2-3 actual ALL-STAR could’ve been signed to long term contracts instead of wasted on several either NO return or very little return.

I once tallied it up GF, Mo wasted nearly $500M on stupid free agent signings and extensions.

Rock, I’ve been banging this drum since the Carp extension….all this Revenue, Big Market [nonsense] is a canard. This real story explaining the Cards downturn
Has been internal management. As you state the waste of money for little to no production is off the charts.

I've been there too GF!

For years I've blasted BDWJr w/dozens of original threads, fingering him as being the main problem for keeping Mo around years past his expiration date and management malpractice.

Just glad he finally caught on.

[Cranny]

He isn't cash strapped..simply not willing to spend it on payroll at this time.

Daze - Do the math. Look at revenues, operating income, value of the franchise, debt as a % of value, probable interest rate, etc. Then look at interest dollars alone that are probably paid, not including any principal reduction. The interest payments are close to twice the operating income.

Busch III was completed and I assume financing in place for the 2006 season. The Foxsports local TV contract that everyone is crying over all the time was signed in 2018. So square that one up Cranny……
And let us know how much tickets and concessions have gone up since 2006???

Their media carrier declared bankruptcy, short changing many of it's "customers". But the main principle you need to look at are the comparative cable contracts between the huge market teams, the mid market teams, and the small market teams.

[Goldfan]

He isn't cash strapped..simply not willing to spend it on payroll at this time.

Daze - Do the math. Look at revenues, operating income, value of the franchise, debt as a % of value, probable interest rate, etc. Then look at interest dollars alone that are probably paid, not including any principal reduction. The interest payments are close to twice the operating income.

Busch III was completed and I assume financing in place for the 2006 season. The Foxsports local TV contract that everyone is crying over all the time was signed in 2018. So square that one up Cranny……
And let us know how much tickets and concessions have gone up since 2006???

Their media carrier declared bankruptcy, short changing many of it's "customers". But the main principle you need to look at are the comparative cable contracts between the huge market teams, the mid market teams, and the small market teams.

Is the local TV revenue LESS than in 2006???

[Goldfan]

He isn't cash strapped..simply not willing to spend it on payroll at this time.

Daze - Do the math. Look at revenues, operating income, value of the franchise, debt as a % of value, probable interest rate, etc. Then look at interest dollars alone that are probably paid, not including any principal reduction. The interest payments are close to twice the operating income.

Busch III was completed and I assume financing in place for the 2006 season. The Foxsports local TV contract that everyone is crying over all the time was signed in 2018. So square that one up Cranny……
And let us know how much tickets and concessions have gone up since 2006???

Their media carrier declared bankruptcy, short changing many of it's "customers". But the main principle you need to look at are the comparative cable contracts between the huge market teams, the mid market teams, and the small market teams.

2006 local TV revenue
29mil

2025 local TV revenue
58mil
Which is down from the 75mil expected from old contract.

So in summation, the Local TV Rev has almost doubled since 2006(new stadium/financing) but is 17mil less than…
So 17mil is reason for all the crying……a Miles Mikolas

[rockondlouie]

Their media carrier declared bankruptcy, short changing many of it's "customers". But the main principle you need to look at are the comparative cable contracts between the huge market teams, the mid market teams, and the small market teams.

While true let's not cry "poor mouth" for BDWJr cranny.

The original deal would have paid around $75 million annually in later years, with the new deal reportedly in the $57-58 million range.

So they lost about $17M in yearly revenue which Dewitt has MORE THAN MADE up by slashing payroll from the $180M range in 2023, to what could be under $100M in 2026 after some high priced veteran are traded.

[Imperial Capitalist]

From Google AI:

In 2010, the Los Angeles Dodgers' cable rights fee was approximately $35.2 million, with the team receiving an advance of $25 million from Fox/Prime to help with financial difficulties. The total fee was part of an existing contract that was set to continue increasing annually until its final year in 2013.

The Dodgers' cable contract with Spectrum SportsNet LA provided approximately $334 million in revenue for 2025, based on the annual average of their 25-year, $8.35 billion deal. This deal, which runs through 2039, is set to provide the same annual amount as a previous year where figures are available, and the team receives the full payment regardless of subscriber losses.

It has increased by a factor of 10 over the course of 15 years.

Despite the fact I believe Dewitt has become too miserly with the check book, there is no way "normal" franchises can compete against revenue streams like that. Absent an unprecedented restructuring of baseball's economics, it points up the need for someone like Bloom to excel in ways we've not witnessed in STL in recent times.

[BrockFloodMaris]

When allocating needed money to improve the Cardinals. Isn't he a billionaire? The Dodgers spent $300 million this season on salaries. They've won the last two World Series. The Cardinals haven't even been to the playoffs for the last three seasons. DeWitt needs to put 2 and 2 together.

Bill Dewitt Jr’s cash position is irrelevant to the Cards cash position. The Cards are a corporation, and BDW has several ownership partners. The Cards revenue from tv is approximately middle of the pack. They used to have a revenue advantage from ticket sales, but that has waned over time.

Signing long term free agent contracts would and will hamstring the club with too many future financial commitments. One bad deal could tie up their finances for years.

In order to compete with the big spenders, the Cards need to draft a little better than they do, develop talent a little better than they do and assess talent a little better than they do. Incremental internal wins will add up over time to make a mid market team competitive with the big boys.

ticket sales haven’t mysteriously waned over time……the Product has Been purposefully neglected which has caused the revenue to decrease.

I don’t recall saying anything about there being a mystery surrounding the waning ticket sales. I agree with you that they are down due to poor on field product.

[Goldfan]

He isn't cash strapped..simply not willing to spend it on payroll at this time.

Daze - Do the math. Look at revenues, operating income, value of the franchise, debt as a % of value, probable interest rate, etc. Then look at interest dollars alone that are probably paid, not including any principal reduction. The interest payments are close to twice the operating income.

Busch III was completed and I assume financing in place for the 2006 season. The Foxsports local TV contract that everyone is crying over all the time was signed in 2018. So square that one up Cranny……
And let us know how much tickets and concessions have gone up since 2006???

Their media carrier declared bankruptcy, short changing many of it's "customers". But the main principle you need to look at are the comparative cable contracts between the huge market teams, the mid market teams, and the small market teams.

2006 local TV revenue
29mil

2025 local TV revenue
58mil
Which is down from the 75mil expected from old contract.

So in summation, the Local TV Rev has almost doubled since 2006(new stadium/financing) but is 17mil less than…
So 17mil is reason for all the crying……a Miles Mikolas

17mil is the reason BDW can’t make his stadium debt payment, reduced payroll by 75mil, decimated his top of league attendance, won’t sign star players, and has Cranny on herE crying poor every other post
Who believes this nonsense??? 17 MIL CAN’T BE THE REASON TO NOT HAVE A 180-190MIL PAYROLL. STOP THE NONSENSE.

[BrockFloodMaris]

When allocating needed money to improve the Cardinals. Isn't he a billionaire? The Dodgers spent $300 million this season on salaries. They've won the last two World Series. The Cardinals haven't even been to the playoffs for the last three seasons. DeWitt needs to put 2 and 2 together.

Bill Dewitt Jr’s cash position is irrelevant to the Cards cash position. The Cards are a corporation, and BDW has several ownership partners. The Cards revenue from tv is approximately middle of the pack. They used to have a revenue advantage from ticket sales, but that has waned over time.

Signing long term free agent contracts would and will hamstring the club with too many future financial commitments. One bad deal could tie up their finances for years.

In order to compete with the big spenders, the Cards need to draft a little better than they do, develop talent a little better than they do and assess talent a little better than they do. Incremental internal wins will add up over time to make a mid market team competitive with the big boys.

So you don't think Mets' owner. Steve Cohen, kicked in anything from his personal wealth to sign Sosa? Cohen has an estimated net worth of 21.3 Billion.

Steve Cohen’s massive wealth, while impressive and certainly relevant for a discussion about the Mets finances, has nothing to do with the Cards ownership group.

[Pura Vida]

Cut costs, especially existing expensive long term contracts. Bring in a known rebuilder of teams....and sell the team. And yes, (I hope) the team remains in STL.

[Cranny]

He isn't cash strapped..simply not willing to spend it on payroll at this time.

Daze - Do the math. Look at revenues, operating income, value of the franchise, debt as a % of value, probable interest rate, etc. Then look at interest dollars alone that are probably paid, not including any principal reduction. The interest payments are close to twice the operating income.

Busch III was completed and I assume financing in place for the 2006 season. The Foxsports local TV contract that everyone is crying over all the time was signed in 2018. So square that one up Cranny……
And let us know how much tickets and concessions have gone up since 2006???

Their media carrier declared bankruptcy, short changing many of it's "customers". But the main principle you need to look at are the comparative cable contracts between the huge market teams, the mid market teams, and the small market teams.

2006 local TV revenue
29mil

2025 local TV revenue
58mil
Which is down from the 75mil expected from old contract.

So in summation, the Local TV Rev has almost doubled since 2006(new stadium/financing) but is 17mil less than…
So 17mil is reason for all the crying……a Miles Mikolas

17mil is the reason BDW can’t make his stadium debt payment, reduced payroll by 75mil, decimated his top of league attendance, won’t sign star players, and has Cranny on herE crying poor every other post
Who believes this nonsense??? 17 MIL CAN’T BE THE REASON TO NOT HAVE A 180-190MIL PAYROLL. STOP THE NONSENSE.

Won't sign star players? What about Ozuna, Goldy, Arenado, Gray, Contreras, etc.

You really need to do the math to understand. Companies in a portfolio need to cash flow. That's how billionaires get to be billionaires.

Now let's look at the reality of the situation. When you buy a stock, you look at a return on investment in two ways - the cash return every year and the equity growth return every year. A good measure is around a 2% dividend/interest return and around a 3.5% for a total of 5.5% total return. So those who want to include the extraordinary value growth of the Cardinals over the Dewitt ownership years have a point. But the problem is liquidity. You can sell a stock easily. Not so with a franchise. So the principal growth is all on paper. It's great, but the business entity itself has to cash flow.

[Rojo Johnson]

A large portion of the dry powder is still stashed away. Along with the Fox Sports TV deal signed several years ago. The one BDW claimed "would keep the team competitive for years to come."

DeWitt has always shied away from big free agents. He prefers a strange practice of overpaying mediocre to bad players.

You got that right. Bill is against paying free agents lots of money. Instead, he favors paying borderline healthy, avg to below avg, over the hill players who people don’t want to pay to watch. Amirite, Miles? Scherzer, a hometown boy, couldn’t crack the code. Instead, we got 5-6 years of The Man Who Eats Lizards. Words never uttered by a young Cards fan, ‘Dad, I want to see Miles pitch; will you take me to the ballgame?”.

[Cranny]

A large portion of the dry powder is still stashed away. Along with the Fox Sports TV deal signed several years ago. The one BDW claimed "would keep the team competitive for years to come."

DeWitt has always shied away from big free agents. He prefers a strange practice of overpaying mediocre to bad players.

You got that right. Bill is against paying free agents lots of money. Instead, he favors paying borderline healthy, avg to below avg, over the hill players who people don’t want to pay to watch. Amirite, Miles? Scherzer, a hometown boy, couldn’t crack the code. Instead, we got 5-6 years of The Man Who Eats Lizards. Words never uttered by a young Cards fan, ‘Dad, I want to see Miles pitch; will you take me to the ballgame?”.

"Dad, I want to see Goldschmidt play. He's a future Hall of Famer."
"Dad, I want to see Arenado play. He's a future Hall of Famer."
"Dad, I want to see Sonny Gray pitch. He came in 2nd in the Cy Young voting last season."