Data Shows Operating Profits for Baseball Declined in 1990

The operating profits of the 26 major league baseball teams declined 33% in 1990 to $142.9 million, according to financial data obtained by the Associated Press Monday.

Even with the decline, the profit was the second-highest in baseball history, trailing only 1989’s $214.5 million, and marked the fifth consecutive year that the industry has made money. The total operating profit for the five years is $593.75 million.

According to figures compiled by the accounting firm of Ernst & Young, the 26 teams had record operating revenues of $1,336,530,000 in 1990 and record expenses of $1,193,663,000 for a profit of $142,867,000.

Revenues increased 7.7% from 1989 to 1990 while expenses increased 16.3 %. The average player salary increased 20.2% to $597,537 in 1990 and jumped to about $880,000 in 1991.

The decline in operating profits does not include the $280 million collusion settlement between the clubs and the Major League Baseball Players Assn. The settlement cost clubs an estimated $55 million in 1990, of which $38 million was principal and the rest interest.