Thursday, May 06, 2004
Independent Reviews Show Brewers $133 Million in Debt
The independent panel charged with reviewing the Milwaukee Brewers' finances released its report this morning. Don Walker of the Milwaukee Journal Sentinel provides an overview:
In fiscal year 1994 -- at the time of the strike Bud and his cronies provoked -- the Brewers owed $32.4 million to their banks. "As of October 31, 2003, that had increased to $122 million. Those notes, plus debt owed to the Miller Park stadium district, bring the total debt to $133.1 million. According to the MMAC report, the club's debt is below the industry average of $140.1 million for the 12 Major League clubs that have new ballparks, but more than the overall industry average indebtedness of $120.5 million."
"Over a seven-year period beginning in 1994 and leading up to the opening of Miller Park in 2001, the Brewers averaged $53.2 million in operating revenue per year. Since the stadium opened, average operating revenue has been $110.1 million.
"In the seven-year period leading up to 2001, the Brewers reported operating expenses at an average of $60.6 million per year. Since Miller Park opened, the average has been $102.8 million."
The Selig family never made the $2 million/year alleged by HBO Sports, but did okay for themselves. Bud Selig's salary peaked at $543,000 in 1994; Wendy Selig-Prieb's peaked at $442,000 in 2001; and Laurel Prieb's peaked at $173,000 in 2002. The Seligs collectively never earned more than $736,000/year from the Brewers. The report found these salaries to be "within industry averages," though under any compensation system that took into account both job performance and the local cost of living, the Brewers' executives should be in the bottom quarter of the industry.
The Brewers were also quite good to Selig Leasing, a family-owned company that received between $358,000 and $521,000/year over the past decade to provide automobiles for club employees. Last year, according to the report, Selig Leasing received $521,000 for providing only about 40 cars, which translates to an average lease rate of $1,085/month.
There's lots more in the article, which the Journal Sentinel says will be updated later in the day.
(Thanks to reader Nathan Jenkin for the tip.)
Update: The reports themselves are online as PDFs: the Wisconsin State Audit Bureau report, and one from the Metropolitan Milwaukee Association of Commerce.
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The independent panel charged with reviewing the Milwaukee Brewers' finances released its report this morning. Don Walker of the Milwaukee Journal Sentinel provides an overview:
In fiscal year 1994 -- at the time of the strike Bud and his cronies provoked -- the Brewers owed $32.4 million to their banks. "As of October 31, 2003, that had increased to $122 million. Those notes, plus debt owed to the Miller Park stadium district, bring the total debt to $133.1 million. According to the MMAC report, the club's debt is below the industry average of $140.1 million for the 12 Major League clubs that have new ballparks, but more than the overall industry average indebtedness of $120.5 million."
"Over a seven-year period beginning in 1994 and leading up to the opening of Miller Park in 2001, the Brewers averaged $53.2 million in operating revenue per year. Since the stadium opened, average operating revenue has been $110.1 million.
"In the seven-year period leading up to 2001, the Brewers reported operating expenses at an average of $60.6 million per year. Since Miller Park opened, the average has been $102.8 million."
The Selig family never made the $2 million/year alleged by HBO Sports, but did okay for themselves. Bud Selig's salary peaked at $543,000 in 1994; Wendy Selig-Prieb's peaked at $442,000 in 2001; and Laurel Prieb's peaked at $173,000 in 2002. The Seligs collectively never earned more than $736,000/year from the Brewers. The report found these salaries to be "within industry averages," though under any compensation system that took into account both job performance and the local cost of living, the Brewers' executives should be in the bottom quarter of the industry.
The Brewers were also quite good to Selig Leasing, a family-owned company that received between $358,000 and $521,000/year over the past decade to provide automobiles for club employees. Last year, according to the report, Selig Leasing received $521,000 for providing only about 40 cars, which translates to an average lease rate of $1,085/month.
There's lots more in the article, which the Journal Sentinel says will be updated later in the day.
(Thanks to reader Nathan Jenkin for the tip.)
Update: The reports themselves are online as PDFs: the Wisconsin State Audit Bureau report, and one from the Metropolitan Milwaukee Association of Commerce.
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