Giants’ CEO Baer talks Posey, tough budget cuts
SAN FRANCISCO » Since the coronavirus pandemic shut down much of the nation’s economy in March, few industries have been immune from staggering financial losses and unforeseen challenges.
Major League Baseball is no exception.
It’s difficult to forecast exactly how much money the San Francisco Giants will lose without a traditional slate of 81 home games at Oracle Park this season, but CEO Larry Baer told this news organization the near-term financial outlook for the franchise has presented a tough reality.
“I think in the near term, yes, there will be losses, and we’re not going to bemoan them,” Baer said. “But when you have your revenue cut by pick your number, 80%, 90% this year or whatever it turns out to be without fans, and then next year hopefully we’ll get as full of a ballpark as we can, that revenue shortfall is just natural. It’s the rhythm of the business, and it’s going to cause losses.”
The Giants, like every team in the sport, have grappled with challenging financial decisions. The team’s ownership group committed to paying every full-time employee (there are almost 400) through at least September, but those earning more than $75,000 were asked to take pay cuts.
The cuts have been widespread. Part-time employees were furloughed. With no games to work, game day staff was laid off so employees could collect unemployment.
“They’re the backbone of your operation,” Baer said of game day workers. “I don’t see the vice president or higher at a game, I see the usher that I know, the vendor that I know, the ticket-taker that I know and frankly, it breaks your heart to see those people not able to work.”
At a time when many owners across the sport have made public comments expressing anger or discontent over the revenue losses, Baer and members of the Giants’ ownership group have been careful about using the time to shine a positive light on employees within the organization.
He said it helps to have a group of more than 30 owners who are committed to the franchise for years to come, and a board of directors invested in restoring the long-term financial stability of the Giants.
“We’re making plans to weather that storm and the owners have been really good about it,” Baer said. “We’re all in a problem-solving mode to figure out ways to exist with the revenue losses.”
In a phone conversation this week, Baer provided five specific examples of why he’s encouraged by the Giants’ recent efforts.
The first is a fund created by the Giants’ ownership group to supplement unemployment payments for game day employees who were laid off. The goal of the fund, which has raised more than $700,000 on top of the $1 million all 30 MLB teams committed to supporting game day staff, is to provide a financial cushion for the more than 2,600 ballpark employees who would have worked at Oracle Park this season.
The next is the creation of an Oracle Park pop-up pantry through a partnership with the San FranciscoMarin Food Bank stationed in Lot A outside the ballpark. From mid-May through June 27, more than 525,000 pounds of food were served to more than 20,000 individuals through the drive-thru and walk-up distribution site.
Giants spokesperson Staci Slaughter explained the numbers have increased over the last two weeks and that a partnership with the San Francisco-Marin Food Bank allows larger quantities of food to be distributed to families and individuals.
Three more efforts that have shown the Giants’ willingness to adapt include company-wide conversations regarding diversity and inclusion, a cutout program that will allow fans to send in images of themselves that will be placed in seats around the ballpark during the team’s 30 home games, and the tireless behind-thescenes preparation process to ensure the Giants could host summer workouts in San Francisco and in accordance with MLB’s health and safety protocols.
“At times, the challenges felt daunting,” Baer said of readying Oracle Park. “I’m really impressed with how it’s come together. It’s had to come together on multiple levels without the connectivity that you would have in a traditional world.”
Many of the projects Giants employees have started over the last several months have required constant communication among departments that aren’t accustomed to working together. Members of departments who have less work to do during a pandemic have volunteered to partake in getting the cutout program off the ground while others have taken on new responsibilities in ensuring the ballpark can handle 50-plus players for workouts on a daily basis.
The result of these efforts was a successful first week of workouts and a feeling the Giants are among the organizations best equipped to handle all of the challenges associated with starting the season safely.
“That’s had to be a company-wide effort,” Baer said. “We would have no chance if it wasn’t a company-wide effort and I think it’s been extraordinary. Gabe (Kapler) sent a terrific email out to the group after day one just thanking everyone.”
Are the Giants among the teams that could make a surprise push toward playoff contention in a 60-game season?
They’ll attempt to do so without the services of catcher Buster Posey, who announced Friday he will sit out the 2020 season after he and his wife Kristen adopted identical twin girls who were born July 3. Posey said the twins will need to remain in the neonatal intensive care unit for quite some time and added it was in the best interest of their health and safety to wait until 2021 to return to the field.
On a Zoom call Friday, president of baseball operations Farhan Zaidi and manager Gabe Kapler expressed their support for Posey’s choice. Later in the day, Baer did too.
“Having known and worked with Buster and Kristen for 12 years, my respect for them as people is boundless,” Baer said. “This personal decision is totally understood and embraced.”
With their franchise player on the restricted list, the Giants must navigate a rigorous early-season schedule that requires them to play 10 of their first 32 against the heavy National League West favorites, the Los Angeles Dodgers. They’ll also face potential playoff teams in the Astros, A’s, Angels, and Diamondbacks before the August 27 trade deadline.