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First Pitch: A Privately-Held Business, But Not a Private Organization

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If you’re a Pittsburgh Pirates fan who wants to see a refreshing example of ownership accountability to the fans, look no further than across the state to Philadelphia Phillies owner John Middleton.

The Phillies have been one of the best teams in baseball this season, but have recently entered a slump. Talking to MLB.com, Middleton discussed the need for the team to evaluate why they weren’t playing like they were earlier this season. He noted how you can’t just point out past winning and passively expect things to turn around.

The refreshing aspect was his stated responsibility toward Phillies fans.

Regarding the signing of big-name free agents, Middleton noted the message those signings send to fans.

“This is why it’s important to go out and sign people like Bryce Harper, why you pay Zack Wheeler $40-plus million a year for three years,” Middleton said to MLB.com. “It’s because this is how the fans react. It’s important to them. They appreciate it. They recognize it. I love that. I have other owners who look at me and say, ‘We don’t get this.’ … It’s remarkable how special this city is as a fan base.”

Middleton, like all MLB owners, runs a privately-held business. However, he made the distinction that the organization is anything but private.

“It’s why I keep telling everybody, it may be a privately-held business that we own, but it’s not a private organization. It’s a very public organization. It’s a stewardship. We have an obligation. We are accountable to the fans and to the city. If you don’t approach it that way, you shouldn’t be an owner in my opinion.”

Bob Nutting Has Failed Pittsburgh For Years

I wrote a lengthy column last week, pointing out how the Pirates are failing from owner Bob Nutting all the way to the development out of the Dominican Academy.

A big part of that failure comes from Nutting’s refusal to spend money on Major League payroll. The Pirates are never going to be a team that can sign the Zach Wheeler’s and Bryce Harper’s of the world. If you’re a Pirates fan, you’ve been conditioned to count the days until Paul Skenes is eventually traded away for the hope of prospects who might win without the generational pitcher on the roster.

There’s still a large gap between the price that a Wheeler or Harper could command, and what the Pirates have normally spent in free agency. Their largest free agent signing is still Francisco Liriano for three years and $39 million. They ended up salary dumping Liriano a year and a half into that deal, sending Reese McGuire and Harold Ramirez away to ensure that Toronto would take on Liriano’s remaining salary.

In five years under Ben Cherington as the General Manager, the biggest free agent signing was Aroldis Chapman for one year and $10.5 million. Their second biggest move was signing Martin Perez for one year and $8 million. The Pirates traded Perez away at the deadline, paying half of his salary to get DSL left-hander Ronaldys Jimenez. They also traded one of their best hitters in the minor league system this year, Charles McAdoo, to get Isiah Kiner-Falefa and 2024 salary relief from Toronto. They ended up cutting payroll at the deadline.

Every move this organization makes, whether it was under former General Manager Neal Huntington (who signed and then dumped Liriano), or the present rebuild under Cherington, is made with a penny-pinching focus toward the bottom line.

There was even some debate in the media over the last two months as to whether the Pirates had money to spend at this deadline. Dejan Kovacevic has said several times that the ownership allotted eight figures. John Perrotto at Pittsburgh Baseball Now cited an anonymous source in the front office who disputed Nutting’s public comments that there was money to spend.

The truth usually lies somewhere in the middle. My question regarding the report that the Pirates had money to spend at this deadline would be to ask if they had money to spend at this deadline, and in the future. If Cherington spent money at this deadline, would he also have money to spend in 2025 and beyond? Or, would the money spent this year reduce future funds?

Saying there’s money to spend now is irrelevant without noting how much money can be spent in the 2025-2027 window that the Pirates are apparently building toward.

And yet, if they want to open that window with a contending season in 2025, they’re going to need to depart from the free agent value bin, and seek out a single player or two who will be making eight figures a year.

The Message the Pirates Send When They Don’t Spend

When the Pirates go to the value bin, they still might have a chance to win by being smarter than other organizations and finding hidden gems. The problem is the message this sends to their fans.

The fans go to the games, spend their hard-earned money, and hope to see a winner that will entertain them. The Pirates have been telling the fans for years that if they show up, the team will increase payroll. After the biggest attendance in franchise history in 2015, Nutting took money from MLB payroll to be directed toward a capital investment that upgraded the facilities at Pirate City.

There’s no reason to assume the Pirates will change their ways this offseason and start spending record-levels. This would involve a level of risk that Nutting doesn’t seem willing to assume.

If the Pirates were to spend on big free agents, they’d run the risk of losing. Despite what Middleton said about the Phillies, fans in Pittsburgh are only going to show up for a winner. If the Pirates spend to build a winner, and that team doesn’t win, Nutting risks taking a loss. That pushes the franchise into debt. Too many seasons of that, and Nutting would be forced to sell the franchise.

It’s not like Nutting or his family would be harmed under this scenario. This isn’t a normal business, where the owners are risking everything in their personal lives. Major League Baseball brings in billions in national media deals every year, and the Pirates receive nine-figures in revenue sharing from those deals alone. They also receive an unknown eight-figure amount in their local TV deal. It’s safe to say the Pirates receive almost double their current payroll in revenues before selling a single ticket.

It’s not impossible for the Pirates to spend more. The Cincinnati Reds opened the 2024 season with a payroll $20 million higher than the Pirates. The Kansas City Royals were $30 million higher. The Minnesota Twins were $40 million higher. Just think what the Pirates could have done this year if they spent that extra $20 million to match what the Reds were committing to their winning efforts.

Think about who they could add to this team next year with a similar boost in payroll this offseason.

Nutting runs a privately-held business, and his primary focus has been to gain as much control of this business for his family to control long-term, while upgrading the aspects which relate to long-term franchise value with the help of revenue handouts from the league and tax dollars.

This is a public organization. The Pirates are a beacon that represents the city of Pittsburgh. Their fans from far and wide follow the team as a representation of their hometown. Nutting has a moral obligation to give his best effort to ensure that representation is one of a winner, and not one of a decades-long laughing stock.

Meeting this moral obligation would involve taking on a higher risk than he’s shown to be comfortable taking. If not done correctly, the risk could put his private-ownership in jeopardy.

It raises the question as to the real responsibility of an owner. Is the responsibility to maintain control of an organization for as long as possible? Or, is the responsibility to use your control to attempt to put the best product forward for the fans?

If Nutting fails at the latter, then he would be justifiably forced to sell to someone who might have more success running such a large operation.

If Nutting only aims to keep control of the franchise, the league is set up so that he never really has to try.

He can just keep sacrificing General Managers who are operating under impossible restrictions, which lowers the chances of the successful team the fans pay to watch.

Ke’Bryan Hayes to the Injured List

The Pirates placed Ke’Bryan Hayes on the injured list on Monday with low back inflammation. Hayes has been dealing with a back injury all season, which has impacted him on both sides of the game.

The best course of action for the Pirates is to rehab their Gold Glove third baseman and hope that he can get to a point where he can return to his 2023 results. He’s under contract through 2029, at $7-8 million per year, which is a value for his defense alone. If he hits like he did in the second-half, he’s an essential part of the core that could allow the Pirates to contend over the next several years.

Back injuries are difficult, and recurring over the long-term. I do believe that Hayes has value in the long-term to any franchise, and the Pirates would be selling low if they moved on from him after an injury-impacted season. Hopefully they can get him back on track. No pun intended.

Pirates Prospect Watch

Bubba Chandler and Billy McKinney were the top performers in Indianapolis this past week. They were joined by young lower-level players Jhonny Severino and Alessandro Ercolani, as well as late-season surgers like Sammy Siani and Hudson Head. Read about all of last week’s top performers in the latest Pirates Prospect Watch.

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Tim Williams
Tim Williams
Tim is the owner, producer, editor, and lead writer of PiratesProspects.com. He has been running Pirates Prospects since 2009, becoming the first new media reporter and outlet covering the Pirates at the MLB level in 2011 and 2012. His work can also be found in Baseball America, where he has been a contributor since 2014 and the Pirates' correspondent since 2019.

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