Braves executives outlined their strategy for future player payrolls in a meeting with Wall Street analysts this week, saying the team will “hit the accelerator” on spending at “the proper time” in its development.
“We are at the low end of the (payroll) spectrum at the moment,” Braves CEO Terry McGuirk said. “We are not afraid at all to go to where it takes to be a championship team. The sequencing of that is very important to us.”
Because the Braves expect an infusion of prospects from the farm system in the near future, “we may realize incredible efficiencies,” McGuirk said, meaning players who will make relatively low salaries initially.
“When the proper time comes, you then hit the accelerator and you go to the free-agent market or you go to other markets – international signings, whatever – in order to bring in the proper extra players to fit,” McGuirk said. “… When the proper time comes and the revenue opportunities have presented themselves, we will try to match up those two things. We’re not going to get out of sync and out of sequence with that.”
Braves president of baseball operations John Hart also discussed the payroll strategy Thursday with the analysts, who were invited to Atlanta by team owner Liberty Media in connection with the new Braves tracking stock.
Hart said the Braves have created financial flexibility while rebuilding the farm system, “realizing that at some point we will have to depend on the free-agent market. We can’t fix it all within the house.
“I’ve been involved with other turnarounds and watched other turnarounds where they were ready to go when the new stadium opened, where they had built the club up over a period of three-four-five years,” Hart said. “We certainly envision that we are going to be a competitive club when we open the doors, and we feel this is going to perpetuate itself as we go forward.
“And we feel that we will have the revenues that when we elect to hit the accelerator we can fast-forward to championship-type product.”
The Braves currently rank 26th among 30 MLB teams in payroll at about $87 million, including a considerable portion for players no longer on the team or inactive. Players on the active roster make about $63 million.
Asked by an analyst if the Braves’ payroll eventually could reach the Dodgers’ $250 million level, McGuirk replied: “No, no. There is only one team that is out there … and $150 (million) is probably more like the legitimate high end of teams when you get past those that are outliers.”
