Sam Kennedy, the Red Sox’ president and CEO, has acknowledged that Boston’s payroll this season is likely to be lower than last season.
According to MassLive’s estimations, the Red Sox’ total payroll for the 2024 season is currently projected to be just over $200 million, down from $225 million last year. Obviously, that could change if Boston signs someone else (Jordan Montgomery?), but at the very least, it seems unlikely the Red Sox will have a higher payroll than last year.
Joining The Greg Hill Show live from Fort Myers on Wednesday, Kennedy said that payroll is tied to revenue, that the Red Sox reinvest their revenue into the team and Fenway Park, and that the Red Sox and baseball as a whole are a “break-even industry.” Listen to the full interview above.
“The way the industry of baseball works, we’re roughly a $12 billion industry. I don't have the exact numbers, but roughly 50% of the revenues go to player costs and the other 50% go to the expenses to cover the industry,” Kennedy said. “This is about a break-even industry, and that's really the focus. The revenues that get generated from our loyal fans, from people that watch on TV, people that spend their hard-earned money at Fenway Park on beer and hotdogs, that goes into player payroll. It goes two places: player payroll, and it goes into the renovations and preservation of Fenway Park.
“Around Major League Baseball, I can't speak for the other groups, but teams have an obligation to invest the revenues they generate into player payroll. That's what the Red Sox do. That's been our focus. That's not going to change. And that's really important that we honor that commitment to our fanbase.”
When producer Chris Curtis followed up by asking why player payroll is down if things like season ticket renewals are up, Kennedy said that the team’s finances overall are “not better” and again claimed that this is “not a profit-oriented business.”
“Well, finances are not better,” Kennedy said. “But again, I'm not going to talk about specific financial parameters or our budget. What I will tell you is the revenues that we generate from the Boston Red Sox are reinvested into the Boston Red Sox baseball operations, our operating expenses, and Fenway Park. And that has been consistent for 23 years. This is not a profit-oriented business, the baseball business. This is a responsibility, a stewardship by John [Henry], Tom [Werner] and Mike [Gordon] to do everything they can to put a winning, great product on the field, and that will continue in 2024 and beyond.”
In March 2023, Forbes estimated the Red Sox had a revenue of $513 million for the 2022 season and total player expenses of $242 million. Their valuation of MLB franchises for the 2023 season are likely to be released in the next couple weeks.
