The Houston Astros are on pace to lose 108 games this season. But that won’t keep the team from producing an operating income of $US99 million, the largest in baseball history according to Forbes.com.
Astros owner Jim Crane, who purchased the team in 2011 for $US680 million, disputed the report, claiming the team will actually have “expenses that are higher than revenues.” However, even if the exact numbers are disputed it is east to see that the Astros should be doing well financially.
The value of the franchise has skyrocketed in recent years, according to Forbes.com’s valuations. That growth is due in large part to a new television contract that will eventually be worth $US80 million per year once Comcast is in all homes in the Houston market, according to David Barron of the Houston Chronicle.
Despite that growth, the Astros’ opening day payroll this year was just $US26.1 million and after several players were moved to other teams, the current payroll is just $US13 million with only one player (Eric Bedard, $US1.2 million) making more than $US1.0 million. Even if the operating income is not what Forbes.com claims, that is quite a disparity between the value of the team and what they are paying the players…
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.