In the red

Diamondbacks projecting financial losses for 2002

PHOENIX (AP) -- Despite an increase in attendance and a likely playoff appearance, the Diamondbacks are projecting operating losses of $40 million to $50 million this season, the Arizona Republic reported Tuesday.

Tom Harris, the team's senior vice president of finance, told the paper the operating loss will be similar to last year's, even if the defending World Series champions go far in the postseason.

The Diamondbacks did not return to a telephone call by The Associated Press seeking comment.

Last year, the Diamondbacks reported a $36.6 million operating loss after paying $4.4 million in revenue sharing, according to figures released by the commissioner's office.

The team is on a 10-year plan to post a profit. Four investors, Phoenix area businessmen Mel Shultz, Dale Jensen, Ken Kendrick and Mike Chipman, have promised an infusion of $16 million a year during the next decade in exchange for more ownership.

"This year we have the highest payroll we have ever had, and it's the highest we are projected to have. Payroll will be somewhat reduced next year," Kendrick said.

The Diamondbacks say they have not made a profit since 1998, when the team claimed it made $21 million during its inaugural season.

Operating losses since 1999 will exceed $125 million after this season, according to the team.

Arizona's opening-day payroll was $102.8 million, but the team will not have to actually pay that much to players because much of the total is being deferred.

 

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