TV deal done. Sports betting Amendment passed. So what’s it all mean for Cardinals payroll?
SAN ANTONIO — When the Cardinals left for Texas at the start of the week to begin an offseason in which everything would not be bigger — not spending, not expectations — they had just trimmed millions off their upcoming payroll and braced themselves for what Election Day and telecast turbulence had in store for them next.
They returned Thursday after an eventful 48 hours for their financial view as an organization, and awaiting them in St. Louis was greater "clarity" for their big-league payroll.
The Cardinals finalized a new, expanded broadcast rights deal Thursday with partner FanDuel Sports Network, which was previously known as Bally Sports Midwest. The deal replaces the previous one and reduces the revenue. Entering the offseason, the Cardinals indicated two of the factors for reducing payroll were the expected dip in rights revenues and sluggish ticket sales after consecutive disappointing seasons. A wild card on the ledger was Missouri's Amendment 2, which had the potential to open up a new revenue stream through legalizing sports betting, and it narrowly passed.
"This all does start to clarify where our budget can be," club President Bill DeWitt III said Thursday when asked about the impact on major league spending. "We have an answer what our broadcasts will look like and how fans will watch games, and we can focus on what it looks like as sports betting becomes legal and project what possible sources of revenues that creates. I think (from a player standpoint) we're still sorting through additions and subtractions and what is available out there.
"We're feeling more comfortable with where we are."
Through trades during the season, free agency at the end of the season and the recent decision to decline options on all three players with them, the Cardinals have cut more than $60 million from their opening day, 26-player payroll that started this season. They opened the year around $180 million, and their total spending on the 40-player roster exceeded $200 million for the first time.
The options declined this past week trimmed $30 million off the 2025 payroll. Some of that will cover raises due starter Sonny Gray and a handful of arbitration-eligible players, including record-setting closer Ryan Helsley. Gray is set for a $15 million bump, and Helsley could see an increase of around $4 million in his third and final year of arbitration rights.
The Cardinals, like several teams dealing with TV turmoil, do not yet have a budget for their big league payroll. An executive at the annual general manager meetings this past week in Texas called the collapse of regional sports networks and Diamond Sports Group's bankruptcy this offseason's "great disruption." Agents received a briefing on it Thursday during their meetings in Texas.
It is common for the Cardinals to not to set a single specific budget number for baseball operations, entering the winter with a range that can shift based on acquisition opportunities. This year, they started knowing they would have to cut — to some point yet to be determined.
"Our strategy from a payroll standpoint — lower revenue from our TV package, and we'll have lower ticket revenue than we've had in a few years," said John Mozeliak, president of baseball operations. "(That influences) how we think about our spending."
From the 15-year, $1.1 billion rights deal that was overwritten by Thursday's agreement, the Cardinals expected to get around $75 million from their broadcast partner, a source described. (The Post-Dispatch previously reported it would be around $78 million based on the initial deal and factors like escalators, inflation and joint advertising.) Despite now including digital rights and a forthcoming direct-to-consumer streaming product, the new multiyear deal is a 23% reduction in rights fees — or $17.3 million in its first year.
The Cardinals project that cut to be smaller than if they had elected to jump to MLB Media in 2025, as teams such as San Diego and Minnesota have already done. The MLB Media model is also subscription-based for streaming with revenues coming from those, and clubs also get advertising revenue from their games and whatever fees are paid by the cable distributor to carry the games.
The Cardinals payroll would have reflected the steeper drop.
With what DeWitt called "more clarity," the Cardinals can adjust their offseason strategy accordingly. They are still committed to a greater investment in player development by increasing staff, facilities and technology. In the coming weeks, the Cardinals will canvass other clubs to measure the interest in some of their higher-salary players, and that will include Nolan Arenado, Miles Mikolas and Steven Matz. The Cardinals expect to receive more overtures for Helsley, though one source said they're inclined to keep the closer unless overwhelmed.
The Cardinals want to know what interests and offers are out there before bringing any to Arenado or Mikolas, both of whom have no-trade clauses. Gray does as well but has expressed a preference to stay, the Post-Dispatch reported Wednesday. Willson Contreras, who also has a no-trade clause, "definitely wanted to be a part of this," Mozeliak said.
The Cardinals never advertised a "fire sale" of veteran players, but having an answer on their broadcast front means they won't be motivated to dump as much salary as they can.
"Most of the deals that we would be contemplating are players with no-trades," Mozeliak said. "You have those hurdles to navigate, but you also have to find a match. Having said that, when you look at how our club is set up we basically had three players come up (on options). We're not currently going after Goldy (free agent Paul Goldschmidt). We have moved some dollars. As we navigate the next four to eight weeks, it is going to be: How can we better our club, how can we better our future, and what does that look like?"
That answer will address the revenue question that lingers.
The Cardinals remain braced for a sag in ticket sales, whether that's season ticket renewals or the single-game sales. One of the early accelerant for future ticket sales during a season is how the team performs in April. The Cardinals know where their fans can watch them on TV that month, know they'll have a rights fee paid by then, know there will be progress toward a new revenue stream from sports betting or a sportsbook housed at Ballpark Village. What they don't yet know is one of the leading indicators for ratings, tickets and foot traffic.
Or how good they'll be on the field.
"Whatever you do media-wise, where people can watch our games, or ticket-wise and how we bring them to the ballpark," DeWitt said, "a good team helps in every way."
GM meetings roundup
Some of the Cardinals' other activity at Major League Baseball's annual first gathering of front offices in the offseason: The Cardinals signed a minor league deal with pitcher Michael Gomez.
The right-hander spent this past season with Tampa Bay's Class AAA affiliate and went 3-4 with a 5.01 ERA in 39 relief appearances. He had 68 strikeouts in 55 2/3 innings — a strikeout rate that the Cardinals have chased when building their bullpen contenders for spring training.
