November 21, 2008 10:34 am
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It has been an interesting week for those of us who watch CNBC as often as ESPN (at least during the non-baseball season): We go to witness the CEOs of Detroit's Big Three begging Congress for a lifejacket and being turned down.
This is a baseball blog — not an economics blog, not a politics blog — so there will be no opinion voiced here on the merits of that request.
The implications from a baseball standpoint aren't difficult to figure, though. Let's say that the doomsday scenario happens and the domestic auto industry collapses by Inauguration Day. Michigan, and the Detroit metro area in particular, are looking at Depression-level unemployment rates (and the state ain't doing that hot right now) — and how the heck can the Detroit Tigers maintain a $130 million-plus payroll under those circumstances?
Answer: They can't. Nobody's ever accused Mike Ilitch, the pizza magnate turned sports impresario, of reluctance to spend on his athletes, but even he has to recognize that this is unsustainable.
Incredibly, the Tigers announced just last week an increase in ticket prices for 2009. We have to maintain a competitive payroll, says the general manager.
Whoo boy. Let's argue that one:
1) You didn't have a competitive team last year.
2) Your fan base is going to cut back. They won't have a choice. And you won't either. The sooner you come to grips with reality, the better off you're going to be.
As the 2008 season ended, Tigers manager Jim Leyland disputed a Detroit columnist's suggestion that the Tigers might do well to follow the Twins model: Go young, go cheap, get aggressive. Our model works just fine, said Leyland.
GM thought so too. But that was back in September.
e-mail Edward Thoma
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