Totally not a surprise: the Rochester Red Wings (Class AAA; International League) will operate the Batavia Muckdogs (short season A; NY-Penn League) again in 2015, as Rochester Community Baseball invests more in the franchise.
Rochester Community Baseball, the nonprofit that owns and operated the Red Wings, have operated the Muckdogs on behalf of Genesee County Baseball Club for the last seven years, with 2015 comprising the eighth year of operations. Rochester Community Baseball traditionally runs the Muckdogs at a loss — usually between $100,000 and $200,000 annually — and it looks like the total will be at last $1 million by the time 2014 numbers are released. And with the team for sale during the term of this arrangement, the issue hasn’t been whether the team sells — it’s when and at what price.
For each year the Red Wings operate the Muckdogs and cover losses, Rochester Community Baseball will receive 5 percent of the sales price. After operating the Muckdogs in 2015, Rochester Community Baseball will receive 40 percent of any sale of the Muckdogs. Naomi Silver, Red Wings CEO/COO and president of Rochester Community Baseball, has been firm on a sales price of $6 million, but the foregone conclusion is that the Muckdogs are out of Batavia and Dwyer Stadium once the team is sold. From the Rochester Democrat and Chronicle:
“I get at least a few calls each month and have extended conversations with many of them,” said Silver, the CEO/COO and president of RCB. “It will take a situation to arise in which there is a city, and a stadium, that is suitable for a pro baseball team.”…
However, RCB will receive 5 percent of the eventual sale price for every year it operates the Muckdogs, with a cap of 50 percent (per the current agreement). After the 2015 season, the Wings will be at 40 percent.
That translates into $2.4 million off a $6 million sales price and a $1 million (roughly) investment — which would be a pretty good investment for the Red Wings.
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