• 18 straight losing seasons (1993-2010)• Longest active playoff drought in all of

professional sports in North America• Finished 57-105 in 2010, the worst record in MLB• Average Attendance in 2010 was under 20,000

(27th in MLB)• PNC Park Capacity is 38,362

• Consistently rank at the bottom of the majors in team payroll

• Consistently turn a profit … ???

• The Pirates made $34.8 million in profit over the past three years.

• In 2008, the Pirates spent $23.1 million on player development.• This spending on development was more than

both the Angels ($16.3M) & Mariners ($15.5M)• This spending was on par with the Marlins

($29.9M) & Rays ($21.9M)• The Pirates had a $51 million payroll in 2008, yet

finished last in the NL Central.• Aided by a $39 million payout in revenue sharing,

the Pirates turned $14.4 million in profit.

REVENUE STREAMING

http://www.pittsburghlive.com/x/pittsburghtrib/sports/pirates/s_696195.html

http://www.forbes.com/lists/2011/33/baseball-valuations-11_Pittsburgh-Pirates_339965.html

REVENUES & EXPENSES

FINANCIAL RATIOSFinancial

RatioCurrent Month

7/31/2009 Year Ended 10/31/2008

Current Ratio $1.84 $2.47

Cash Ratio $0.40 $0.04

Total Debt Ratio $0.70 $0.65

Debt-Equity Ratio $2.33 $1.86

Note: The current liabilities for the Current Month of 7/31/2009 is far higher then that for the Year Ended 10/38/2008 because of a staggering increase in unearned revenue. Unearned revenues for the current month were $16,986, while unearned revenue for the previous year was only $1,746.

Note: Cash and cash equivalents for the current month are drastically higher then in the previous year. This formula is an indicator of the extent to which a company can pay current liabilities without relying on the sale of inventory and the receipt of accounts receivables. The Pittsburgh Pirates had to rely far more on the sale of inventory and the receipt of accounts receivables in the previous year ending 10/31/2008 compared to the current month 7/31/2009.

FINANCIAL RATIOSFinancial Ratio 2007 2008

Times Interest Earned 3.08 Times Covered 3.57 Times Covered

Asset Turnover Ratio $0.59 $0.62

Net Profit Margin (in terms of Revenue Sharing)

$0.50 $0.37

In 2008, The Pirates generated 37 cents in profit for every dollar in revenue sharing dollars. In 2007, They generated almost 50 cents in profit for every dollar they got from revenue sharing. In COMPARISON, the Pirates only generated 14,408,429/34,422,311= .41 cents per gate receipts in 2007. This just shows that in 2007, the Pirates were much more profitable off the revenue sharing than they were from their own gate receipts!

Gate Receipts $32,129,368 $103,209,000 $20,985,000 $39,013,069 $66,324,000

MLB Revenue Sharing $39,046,312 ($14,747,000) $47,982,000 $35,345,277 ($16,174,000)

MLB Central Fund $20,306,730 $27,191,000 $31,298,000 $19,778,648 $28,132,000

Local Broadcasting $18,700,434 $42,967,000 $15,900,000 $13,444,475 $64,365,000

Concessions $8,283,870 $16,516,000 $2,268,000 $9,551,348 $11,240,000

Total Income $145,993,437 $237,869,000 $139,647,000 $160,961,576 $216,200,000

Player Salaries $51,040,233 $142,138,000 $29,739,000 $56,018,335 $119,408,000

Player Development $23,182,677 $16,339,000 $29,970,000 $21,900,693 $15,534,000

Total Expenditures $124,203,035 $226,615,000 $100,433,000 $146,759,370 $223,872,000

Profit (after taxes) $14,408,249 $7,088,000 $29,462,000 $4,016,163 ($4,533,000)

2008

Pos.Player SalarySP Paul Maholm $6,250,000

CChris Snyder $6,250,000CRyan Doumit $5,200,000

1BLyle Overbay $5,000,000SPKevin Correia $4,000,000RFMatt Diaz $2,125,0003BPedro Alvarez $2,050,000SPRoss Ohlendorf $2,025,000SSRonny Cedeño $1,850,000CLJoel Hanrahan $1,400,000RPJeff Karstens $1,100,000RPJosé Veras $1,000,000RPEvan Meek $461,500RFGarrett Jones $455,500CFAndrew McCutchen $452,500

Pos.Player SalarySPScott Olsen $450,000SPJames McDonald $443,000LFJohn Bowker $441,500SPCharlie Morton $441,0002BNeil Walker $437,000RPChris Resop $431,500RPGarrett Olson $430,000LFJosé Tábata $428,0001BSteve Pearce $427,500

CJason Jaramillo $422,500SPKevin Hart $417,000RPJosé Ascanio $416,000SPBrad Lincoln $414,500RPMike Crotta $414,000SSJosh Rodriguez $414,000

BOLD = Opening Day Starter RED = Disabled List

PAYROLL

Pos. Player Salary Pos. Player Salary Pos. Player Salary Pos. Player Salary

SP Paul Maholm $6,250,000 LF Matt Holliday $16,317,774 1B Prince Fielder $15,500,000 3B Alex Rodriguez $32,000,000

C Chris Snyder $6,250,000 1B Albert Pujols $14,508,395 SP Zack Greinke $13,500,000 SP CC Sabathia $24,285,714

C Ryan Doumit $5,200,000 SP Chris Carpenter $14,259,403 SP Randy Wolf $9,500,000 1B Mark Teixeira $23,125,000

1B Lyle Overbay $5,000,000 SP Kyle Lohse $12,187,500 RF Corey Hart $6,833,333 SP A.J. Burnett $16,500,000

SP Kevin Correia $4,000,000 RF Lance Berkman $8,000,000 2B Rickie Weeks $4,500,000 CL Mariano Rivera $14,911,700

RF Matt Diaz $2,125,000 SP Jake Westbrook $8,000,000 SS Yuniesky Betancourt $4,300,000 SS Derek Jeter $14,729,364

3B Pedro Alvarez $2,050,000 SP Adam Wainwright $6,687,500 LF Ryan Braun $4,287,500 C/DH Jorge Posada $13,100,000

SP Ross Ohlendorf $2,025,000 C Yadier Molina $5,312,500 RP LaTroy Hawkins $4,250,000 2B Robinson Canó $10,000,000

SS Ronny Cedeño $1,850,000 SS Ryan Theriot $3,300,000 SP Shaun Marcum $3,950,000 RP Rafael Soriano $10,000,000

CL Joel Hanrahan $1,400,000 CL Ryan Franklin $3,250,000 SP Yovani Gallardo $3,500,000 RF Nick Swisher $9,100,000

Total $36,150,000 Total $91,823,072 Total $70,120,833 Total $167,751,778

Average $3,615,000 Average $9,182,307 Average $7,012,083 Average $16,775,178

TOP 10 SALARIES

Gary Gillette, a former co-chair of the Society for American Baseball Research's business of baseball committee, said the Pirates likely are better served by putting their profits into player development.

"The underlying issue is one of trust in the ownership and management of the team," Gillette said. "Even if they spend an extra $20 million this year, there's not a player out there who they could get who would make a difference. And given how they said they want to build through the draft, it would almost seem irresponsible to do that. But the average fan doesn't want to hear that."

PLAYER DEVELOPMENT

http://www.pittsburghlive.com/x/pittsburghtrib/sports/pirates/s_696195.html

PEDRO ALVAREZ

TONY SANCHEZ

JAMESON TAILLON

2008 – 2nd overall selection – Vanderbilt UniversityBorn in Santo Domingo, D.R. / Raised in Washington Heights

Originally drafted in 2005 by the Boston Red Sox in 14th roundCurrently: Starting Third Baseman for the Pittsburgh Pirates

In 2008, signed a 4-year contract for $8.15 millionGuaranteed $6M in signing bonuses payable over 2009 & 2010

2009 – 4th overall selection – Boston CollegeBorn and Raised in Miami, FloridaCurrently: Catcher for Pittsburgh AA-Affiliate Altoona CurveRated #46 Prospect for 2011 by Baseball AmericaIn 2009, signed a deal with a signing bonus of $2.475 million

2010 – 2nd overall selection – The Woodlands High School (TX)Born in Winter Haven, Florida / Raised in The Woodlands, Texas

Currently: Starting Pitcher in extended Spring TrainingRated #11 Prospect for 2011 by Baseball America

In 2010, signed a deal for $5 million with a $6.5M signing bonusAt age 19, received the 2nd highest signing bonus in draft history

ARAMIS RAMÍREZ2-TIME ALL-STAR

TRADED W/ KENNY LOFTON IN 2003 TO THE CHICAGO CUBS FOR JOSÉ HERNANDEZ, MATT

BRUBACK, & BOBBY HILL

BRIAN GILES2-TIME ALL-STAR

TRADED IN 2003 TO THE SAN DIEGO PADRESFOR JASON BAY, ÓLIVER PÉREZ, & COREY STEWART

JASON BAY

TRADED IN 2008 TO THE BOSTON RED SOX (3-TEAM DEAL)

FOR ANDY LAROCHE, CRAIG HANSEN, & BRANDON MOSS

2004 NL ROOKIE OF THE YEAR3-TIME ALL-STAR

NATE MCLOUTH

TRADED IN 2009 TO THE ATLANTA BRAVES FOR JEFF LOCKE, CHARLIE MORTON, & GORDYZ

HERNÁNDEZ

2008 ALL-STAR SELECTION2008 GOLD GLOVE OUTFIELDER

The Pittsburgh Post-Gazette took 10 popularly expressed views about the Pirates and challenged, through a series of interviews, their top three men -- owner Bob Nutting, president Frank Coonelly and general manager Neal Huntington -- to address whether those are myth or reality: 1. The owner doesn’t care.

2. They pocket big profits.

3. Payroll will never rise.

4. Why must fans show up first?

5. All they need is welfare.

6. The players will leave.

7. The window is too short.

8. They won’t pay for talent.

9. They’ll never sign an impact player.

10.They’ll never win.http://www.post-gazette.com/pg/11091/1136179-63.stm

ROJECTIONS

Based on these numbers, we can project that the Pirates are nowhere near contending. With their basic philosophy of drafting talent and trading away for more prospects, the team is looking at another five year stretch of approximately 65 wins and 97 losses, making fans in Pittsburgh uneasy into the future. Ironically, the team has been consistent in their wins and losses plateau, but this alone has to be worrisome to the fans in Pittsburgh.

YEAR W L PCT.2006 67 95 .4142007 68 94 .4202008 67 95 .4142009 62 99 .3852010 57 105 .352

Rebuilding since ‘92!