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Tuesday, September 10, 2002

Reds left to guess on budget for '03



By John Fay, jfay@enquirer.com
The Cincinnati Enquirer

[img]
Will the Reds have enough money to sign guys like Jose Guillen?
(AP Photo/David Kohl)
| ZOOM |
        John Allen, the Reds' chief operating officer, has spent a lot of time trying to figure out the other 29 major league teams' “NLR.”

        NLR stands for Net Local Revenue, which is key to what the Reds will receive in revenue sharing under baseball's new labor agreement. That, in turn, affects the Reds' 2003 budget.

        Once the Reds crunch all the numbers, they'll have an idea of how much they can spend on player payroll. It will be more than the $45 million they spent this season. So, how much is it?

        “I've got a guess,” Allen said. “But we're months from having the actual figures.”

        Until the Reds have a firm number, many player personnel decisions — whom to re-sign, which free agents to pursue — are on hold.

        “We've been studying the operating budgets of the 29 other teams,” Allen said. “But you're guess-timating,”

        When ticket prices for the Great American Ball Park were announced, Allen estimated the Reds would get $10 to $15 million in additional revenues.

        However, that was before the new labor agreement. Allen has been trying to determine how the new deal affects that estimate.

        Allen said the revenue-sharing amount the Reds receive for 2003 will be less than they got in 2001 and will get in 2002.

        “Our local revenue will go up with the new stadium,” he said, “so we know we're going to get less.”

       



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