Fire sale wsj article how can they afford to do this

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Fire Sale (WSJ article) How can they afford to do this? Reduce costs Stadium, payroll League revenue sharing
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The Franchise 1997 World Series Champion Florida Marlins Wayne Huizenga claimed losses of $34 million
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The Franchise 1997 World Series Champion Florida Marlins Wayne Huizenga claimed losses of $34 million
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Tampa Bay Rays Winning Team Year Record Standing Result 2007 66-96 5th 2008 97-65 1st Lost in WS 2009 84-78 3rd 2010 96-66 1st Lost in ALDS
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Tampa Bay Rays Marketable Players
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Tamp Bay Rays Would you predict them to be making a profit or not?
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Tamp Bay Rays Low attendance Team’s response Cutting costs 2010 Payroll 2011 Payroll Attendance
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Profit Maximization π = Total Revenue – Total Cost
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Profit Maximization π = Total Revenue – Total Cost To max π  set first derivative = 0 Dπ/dQ=dTR/dQ – dTC/dQ = 0 dTR/dQ = marginal revenue (MR) dTC/dQ = marginal cost (MC)
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Monopoly Demand Supply or MC Marginal Revenue Optimal Price Optimal Quantity
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Profit Maximization Generally, what can owners do to maximize profits Increase Revenues Ticket Sales Broadcasting Rights Licensing Agreements Stadium Decrease Costs Payroll
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