The Houston Astros are well on their way to losing more than a hundred games — and having the worst record in baseball — for the third straight season.
Off the field, though, things look a lot rosier.Forbes.com reports the team is on pace to bring in about $99 million in operating income this season. "That is nearly as much as the estimated operating income of the previous six World Series championship teams — combined," the story points out.
And it makes the Astros the most profitable team in MLB history.
How have they done it?
For one thing, the Astros have the lowest payroll in baseball by far. Forbes estimates Houston will end paying about $21 million in salary and bonuses this year, down from $56 million just two years ago, when Jim Crane bought the team.
Since Crane took over, the team has jettisoned its most expensive players with the stated goal of improving its farm system. Veteran pitcher Erik Bedard is the only Astro making more than $1 million this season.
“Once our minor league system is filled in, we’ll move up into the top five or 10 in payroll,” Crane told ESPN The Magazine.
At the same time, the Astros have seen their regional television revenue skyrocket.
In a deal that started this year, Comcast SportsNet Houston pays the Astros $80 million a year for the right to show their games. That amounts to an increase of more than $50 million over what the team was getting under its previous deal.
The Astros aren't the only team that has seen a big increase in TV money. Advertisers consider live sports one of the few DVR-proof programming options left.
"Sports programming has never been so valuable," Forbes point.
