Forbes Confirms Oakland A's Owner John Fisher's Claim That Team Lost $40 Million In 2023 - ATLNews

Forbes Confirms Oakland A's Owner John Fisher's Claim That Team Lost $40 Million In 2023 A Forbes Magazine writer named Maury Brown tweeted three hours ago that he was given access to the Oakland A's financial information in detail - and came away confirming what A's Owner John Fisher told him: the team lost $40 million in 2023. Maury Brown wrote: I was given access to the A’s financial information; a rarity. Everything from revenue sharing to central funds to RSN fees. A’s Financial Details Reveal John Fisher’s Claim Of $40 Million Losses For 2023. Then, he continues: "Details of the Oakland A’s finances reveal how owner John Fisher said to the Las Vegas media that the club was projected to see substantial losses for 2023. The data pulls back the curtain on the financial stability of the club, and why they believe a new ballpark in Las Vegas could solve the problem." Maury Brown then writes "A high-placed baseball industry insider with intimate knowledge of the finances provided the details on condition of anonymity. I am unable to verify all the details within it. However, several aspects of the information have been verified by independent third-party sources lending credibility to them." Then Maury Brown tweets - "If what the A’s receive in MLB central funds is the same as other clubs in the league, it is far less than what comes in, pointing to league reserves. Oakland will get $59M for 2022. Just national TV $ would come to $58.6M per club. So, we need to redefine the stream. On one hand, you look at this and say, “Well, the A’s have had a rough go of it.” On the other you say, “How in the world does a club in a $12B industry have this happen?” A’s think it all gets solved with a new ballpark. But you’re only as strong as the weakest link. But Maury also finds that announcing relocation did not help the A's fiscal cause, either: "What’s important here is in the year before announcing relocation the A’s almost break even. On local revenues they take it in the shorts for 2023 while seeing central funds increase to make much of it up. Oh, and expenses grow 18.3%. Some is filling staff. Hard to explain". The Truth Is The Oakland Coliseum Has Cost The A's In Lost Revenue That news just shut down a major tool for Oakland A's fans who don't want to admit the City of Oakland just plain screwed and failed to deliver on the promise of tax increment financing. Brown says the A's lost money for seven straight years. But the truth is the Oakland Coliseum's lease structure, layout, and lack of investment in the very design of the facility (it looks like a high school stadium now) has cost the A's millions in lost revenue. Then, the A's lost even more money by waiting on the City of Oakland to get its tax increment financing act together. Brown had accused Fisher of a "financial trick" which was a totally irresponsible act. Now, Brown says "The data provided shows that Fisher rounded up when saying that the A’s would lose $40 million this year. But the figure is, nonetheless, substantial. With the regular season one month from completion and nearly three-quarters of the calendar year in the books, the A’s project to lose $39.322 million in cash flow after nearly $3 million in capital expenditures." Brown adds "While attendance is projected to be up for 2023, ticket and suite revenue is projected to be down more than $5 million compared to 2022. This likely comes in two forms: the number of season ticket holders or suite holders has dropped in favor of lower ticket sales. The A’s also donated the entire gate from the June 13 game against the Rays – one of the “reverse boycott” games – to charity. To add, the A’s sponsorship revenue is projected to take a hit dropping from nearly $10 million in 2022 to $6 million in 2023. On the plus side, local media rights from their deal with NBC Sports California will be $67.988 million for 2023, up from $66.275 million. When accounting for all local operating revenue streams the A’s are forecast to reach $114.561 million compared to $121.635 in 2022. Finally, after reviewing operating expenses and revenue sharing, Brown writes "the information details more clearly what has been happening within the A’s organization and their finances. If the numbers are accurate — and the ones that were verified by third parties are right on the nose — then it’s clear that the A’s have been running at a substantial cash flow deficit. No business can run that way for long."
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