January 14, 2018

VIVA LAS VEGAS:

Why potential investor says Jeter plan is badly flawed and will fail (BARRY JACKSON,  January 11, 2018, Miami Herald)

New Marlins CEO Derek Jeter slashed payroll largely because investors were assured they would not be asked to cover losses. Jeter also cited the fact Miami hasn't been to the postseason since 2003.

But one investor who was asked to join Jeter's group and decided against it said Jeter's plan has a fatal flaw.

He said Jeter made a miscalculation by trading popular players including National League MVP Giancarlo Stanton, angering many of the team's fans and believing he could nevertheless increase attendance by 4000 per game in 2018 and by an additional 3000 in 2019, as one version of his Project Wolverine business model projects.

"The Derek Jeter plan all along was to crush payroll to reduce expenses and somehow magically have ticket sales go up," the Northeast-based businessman said. "Can't happen. This is entertainment. Fans come to see players they identify with, not Triple A players.

"Ticket sales will collapse even more under this plan. Nobody [in his group] really looked at this. It shows lack of business acumen. You will still need to rebuild with top players at some point and they will be more expensive and harder to bring to Miami, especially under this new management team and the reputation" established during cost-cutting.

The plan--getting rid of your best young players--only makes sense if you're destroying interest in the team so you can move it.  They were basically just two starting pitchers away from being a playoff team, which might have kept them from losing money in the first place.



Posted by at January 14, 2018 8:23 AM

  

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