Pittsburgh Sports Report
July 2005

McClatchy Pushes Forward
Owner Determined To Leave Past Behind
By John E. Sacco

His detractors like to say Kevin McClatchy did not do enough to advance the cause of small-market franchises during Major League Baseball's last negotiations with the player's association three years ago. While the collective bargaining agreement reached in 2002 did introduce a more meaningful revenue-sharing system that has helped fatten the pockets of smaller market franchises, it has done little to alter the competitive balance in the league of haves and have-nots.

The owners' line after an agreement was reached – which helped the game avoid what could have been devastating strike – was that they couldn't get everything they wanted, particularly a salary cap, in one negotiation. They said their advances would have to be incremental.

Much has changed since 2002.

McClatchy is again talking about "fixing" the game to address the competitive balance issue in the next CBA. He is a member of MLB's labor committee and is now in the upper half of longest tenured owners in the league.

Perhaps he has gained a bit more influence through his experience. His resolve seems obvious after earlier this year blasting fellow owners for what he termed was an irresponsible increase in free-agent spending.

"I think everybody that is in that room on that committee has the opportunity to influence the other folks there," McClatchy said. "Just to be on that committee is very important as far as really having the ability to change people…

"I think I've made that pretty clear. It's a concern to me and other baseball owners and baseball fans. In some ways things have improved in terms of increased revenue sharing as opposed to virtually no revenue sharing. It has improved. But that's one step. We have to take a significant step forward. I'll try to get that done in the next year or so."

McClatchy pointed to the late Pete Rozelle, former NFL Commissioner – who in the late 1960s told the owners to think league, not team.

"That's a little of what we need to do," McClatchy said. "We need to have a sport where disparity in revenue is not so significant. We as an industry are going to have to attack that and see how we can lower that disparity. I'm not going to make it just about the Pirates, but we need to look at the league. If a lot of teams lose that hope and faith it is not good for the sport.”

He is convinced most owners understand the disparity issue is significant and needs to be addressed during the next negotiation.

OPEN AND SHUT CASE

What McClatchy will not be doing is opening the ball club’s books to the public as Milwaukee did.

While some suggest the Pirates owe their fans and the community at large as much, McClatchy said private companies just do not open their financial records for public consumption and he wondered if the same private entities calling for the Pirates to open their books would be willing to share their financial information.

In 2004, the Brewers caved in to intense pressure and allowed a pair of panels – a group of business executives and one from the Wisconsin legislature – to audit almost all aspects of the club's finances from 1994 through 2003, including executive pay.

The unprecedented move was aimed at eliminating taxpayer concerns or suspicions that the Brewers' ownership wasn't pocketing the money or gains from Miller Park, the team's new stadium.

McClatchy said "nothing positive came out of" what Milwaukee did in opening the books.

"We're a private business," McClatchy said. "Even some of the people calling for it. . . I'd be fascinated to know if they would be willing to open up their books. There are some people claiming I should do things, but I bet if I put the shoe on other foot, they might really start getting a little nervous because some people might want to know that. But just as I think I don't need to, I'm sure they feel the same way."

McClatchy added that he and his organization are continuing on a path they think will help the Pirates survive and thrive long-term, and one that will produce winning baseball in Pittsburgh. That's his focus.

"People are going to say what they want to say. I clearly told people, looked in their eyes and said I had no intention to move the team,” he said. “They still called me a liar and a carpetbagger and I was going to move the team. That was the first time I learned regardless of what you say, some people aren't going to believe you.

"I saw what happened in Milwaukee. They were under all this heat to open the books. They opened the books and people accused them of not giving full information. They opened the books and people said they really mismanaged the team. They went through the whole process and I'm not sure what they got out of it other than people saying they mismanaged the team. I don't see the upside. It appears when you're winning, opening the books isn't all that important. When you're losing, opening the books is important."

SEEING STARS

Hosting the 2006 All-Star game will give the Pirates a tremendous lift at the box office next year, particular with season tickets. But it also marks an extremely important time for the Pirates' long-term health.

That means the club desperately wants to be not only moving forward, but showing promise that sometime soon it could make a realistic run at a post-season berth.

Hosting the game will pump money into the team and the city's coffers. But once it ends, the reality is, the Pirates better have turned a corner or even their most ardent followers will be likely to jump ship.

"I think it's going to help us sell more tickets," McClatchy said. "I don't think it's made any huge results this year. I think the increase in (season-ticket sales) this year is because the fans like our team, too. At end of last year, people liked our team; Jack Wilson, Oliver Perez, Jason Bay, Rob Mackowiak. There wasn't a lot of transition. You saw some jump (in ticket sales) because of the All-Star game. I think next year you'll see a pretty good jump, mainly due to the All-Star game."

McClatchy said, arguably, the game will pump between $50 to $80 million into the city.

"My hope is the team will continue to get better as we work toward the All-Star game," McClatchy said. "I think the fans want to come out. I think you're seeing a little of it this year. If we start winning, you'll start seeing tremendous excitement at the ballpark."

PONDERING A CURE

McClatchy bristled earlier this year at suggestions that he is pocketing money and leaving the team to flounder. He also insists he will help level the playing field during the next labor negotiations and that he has the support of other owners in his quest. He also said Pirates' ownership will continue to pump the necessary finances into the club to make it a winner.

He addressed the accusation of pocketing money instead of putting it back into the franchise.

"I think you call it out and show how ridiculous it is," he said. "If I were taking $3 million out of the team and not telling my partners, that would be criminal activity. You just try to put it in the simplest of terms so people can say, 'he's probably not doing that.'

"Sometimes you see things and read things and just stay focused on what your goals are and not let those things take too much of your energy and attention away."

What McClatchy does know is that the Pirates' management has made mistakes. At the same time, he thinks the club is on the right track and he believes in his organization.

"The organization we took over was awful at best," McClatchy said. "We've made mistakes. I've been the first one to say we did. We made a change on the baseball side. I think we should be judged on how (General Manager) Dave (Littlefield) and his staff do. He has a plan. He has good people around him.

"We're going to keep pushing forward. Opening up the books and all that stuff is so far behind me. I'm not going to worry about it. I know what we're doing. If people want to write we're taking money and putting it in our pockets. . . it's so ludicrous that as a journalist I 'd be afraid to have it in my publication. That's up to them. We're sticking to our plan to work our plan and make it happen."


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