Thursday, March 28, 2013

Bob Nutting - Good Businessman, Bad Owner

Bob Nutting became the principle owner of the Pittsburgh Pirates in 2007. Nutting was the Chairman of the Board for the Pirates since 2003 and has been part of 10 consecutive losing seasons in his tenure. A baseball man he is not, but a business man he certainly is. Aside from his interests with the Pirates, Nutting is also the Chairman of Seven Springs Mountain Resort and President and CEO of Ogden Newspapers. Bob Nutting may not be a baseball guy, but he knows how to run profitable organizations and grow them to their potential.

The Ogden family was part of an investor group (with Kevin McClatchy as the CEO) that purchased the Pirates in 1996 for only 95 million dollars. After numerous losing seasons, McClatchy decided to move on from the organization and Bob Nutting stepped in as the principle owner in 2007.

Bob Nutting, the business man, knows how to turn a lump of coal into a diamond. Since purchasing the club for 95 million in 1996, the team has grown in valuation exponentially to a 2013 value of 472 million. The 472 million valuation represents an astonishing 43% inrease over the 2012 valuation. Even with the 472 million dollar valuation, the Pirates are still ranked only 27th out of 30 MLB teams in net worth. In fact, the Yankees valuation is currently 2.3 billion (Approx 1.8 billion higher than the Pirates). However, here's where Bob Nutting flexes has mental muscles. The Pirates operating income is 19 TIMES greater than the Yankees. As of March 2013, Forbes reports the Yankees operating income as 1.4 mil compared to the Pirates' 26.8 mil. In fact, only 5 teams in the MLB have a higher operating income than the Pittsburgh Pirates (Cubs, Nationals, Orioles, Padres, and A's).

So, what incentive does Bob Nutting have to assemble a winning baseball team? Regardless of valuation, the Pittsburgh Pirates are a profitable organization. In fairness, Nutting has allowed the payroll to climb to 69 million this year and it appears the club is sticking to the plan set in place by Frank Coonely and Neal Huntington to build through the draft and sign their own players. At the end of the day, Nutting may not be the owner that will help assemble a winning baseball team, but he is the owner that will continue to make the team a successful organization from a financial perspective.

My issue with Bob Nutting is the amount of operating income. When your team hasn't experienced a winning season in two decades, you shouldn't have the 6th highest operating income in the league. I understand owning the team is a business for Nutting and he's running the business profitably, but as the owner of a professional sports organization, he owes it to the lifelong fans and the sport to do his best to put a winning team on the field. In his tenure with the Pirates, Nutting has not done his best assemble a winning team. I can't help but think how things might be different if Mark Cuban would have purchased the Pirates...


Forbes 2013 MLB Valuation - Pittsburgh Pirates

Owner: Robert Nutting
Championships: 5
Price Paid: $92 M
Year Purchased: 1996
Revenue : $178 M
Operating Income : $26.8 M
Debt/Value : 27%
Player Expenses : $69 M
Gate Receipts : $40 M
Wins-to-player cost ratio : 151
Revenue per Fan: $40
Metro Area Population: 2.4 M

Profile

The Pirates posted their 20th consecutive losing season in 2012. But the Pirates have improved a lot on the field and have been in the playoff picture for much of the past two seasons. Owner Bob Nutting has been spending a lot on drafting potential stars and has publicly stated he will use the increase in MLB's new national broadcasting television deal--worth $25 million a year more on average starting in 2014--on improving the team. Attendance jumped 8% last year to 26,148 per game.











Wednesday, March 13, 2013

Hello Steelers. It's Me. Mediocrity.

As a die hard Steeler fan and eternal optimist, it pains me to write this article. Although I'm optimistic, I'm also realistic. The Steelers are on a one way ticket to mediocrity.

Last season, the Pittsburgh Steelers scratched, clawed, and fought their way to an 8-8 record. The organization hasn't had a .500 season since 2006. The difference, in 2006 the organization was beginning to get better. After 2012, the organization seems to be in a world of trouble. A decade of overall poor drafting forced the Steelers to sign old veterans to large contracts; a practice the Steelers are known for not partaking. Now, the team is salary cap cash strapped (say that 10 times) and have nothing to show for it.

As if the mediocre season weren't bad enough, their offseason is shaping up like this:

* Mike Wallace went to Miami for Fitz money. (We thought he was crazy when he said that's what he wanted)

* #1 RB Rashard Mendenhall went to Arizona (Rightfully so)

* Willie Colon was cleansed and handed his walking papers

* They cut the strongest of the apes, Silverback James Harrison

* Starting LT Max Starks is unlikely to be resigned

* Casey Hampton might not be far behind

* Keenan Lewis is visiting the Saints and I'm sure they'd prefer he didn't leave town without a contract

* Backup S Ryan Mundy is visiting the Giants

* Chris Rainey cut for doing Chris Rainey-like activities


On a positive note, the following transactions were made in an effort to improve the organization:

* Signed Jonathan Dwyer

* Signed Isaac Redman

* Signed Bruce Gradkowski to backup Ben (His career 52% completion rate, 5.72 yards per completion, and 33 turnovers in 36 games played get me real excited for when Ben goes down)

* Signed Ramon Foster to a 3 yr deal (This one actually excites me - not kidding)

* Larry Foote signed for 3 years (Are you f'ing kidding me?)

* Signed Plaxico Burress to a 1 yr deal

* Signed LS Greg Warren


As the roster stands currently, here's a positional look at the world of shit the Steelers are in:

QB - Ben is still playing at a high level, but his tendency to get injured is concerning. Byron Leftwich and Charlie Batch haven't been resigned, but the Steelers hope to fix that problem with the recent addition of Bruce Gradkowsi. As I mentioned above, Bruce Gradkowski has never been very successful in the NFL. After 8 seasons, to expect anything different in Pittsburgh would be insane. The Steelers lack adequate depth behind Ben.

RB - Rashard Mendenhall battled the injury bug last year and was ineffective when he did play. The organization was hopeful that Redman and Dwyer would pack the punch they needed, but outside of a few good games, the young running back tandem came up short. Both backs would serve as better complementary backs than starters, but the Steelers currently have no other options (or cap space). The team lacks a true #1 running back.

WR - The Steelers most productive receiver, Mike Wallace, is now a Dolphin. Jerricho Cotchery is currently a free agent, but would love to come back to Pittsburgh. Plaxico Burress signed a 1 yr deal to return. That leaves the organization with Antonio Brown, Emmanuel Sanders, and Plax. There's an obvious deficiency at WR that needs to be addressed.

TE - Heath Miller was having the best season of his career before suffering a devastating knee injury. He may not be capable of returning until after the first month of the regular season, so the team will be relying on a TE tandem of David Paulsen and David Johnson. There is no way team David will be able to make up for what the Steelers are losing in Heath Miller. Hopefully Miller can heal ahead of schedule and return the same player he was before the injury.

FB - Will Johnson came onto the scene in his rookie campaign and played admirably. It appears he will have the chance to play in 2013 as well.

Offensive Line - With the departure of Starks and Colon, the Steelers must replace two starters. Mike Adams, Marcus Gilbert, and David DeCastro must all take a leap forward next season and assume starting roles. Maurkice Pouncey and Ramon Foster will continue to anchor the line. The untested young guys leave a big guestion mark on the line. The 3 new starters are all recent draft picks, so I will give them a pass until they have a larger body of work under their belts. The lack of experience is concerning though.

Defensive Line: It seems likely that Casey Hampton may have played his last game as a Steeler, but he hasn't been cut yet. Even so, Hampton is aging and far less productive than he once was. Steve McClendon has been showing signs of being capable of starting and may have the opportunity to do so in 2013. The organization attempted to get younger and stronger on the defensive line by drafting two defensive ends in the first round in recent drafts (Cam Heyward and Ziggy Hood). Neither players have done anything yet to prove they were worthy of the first round pick. Hopefully they blossom in 2013, but at this point in time, they haven't lived up to their expectations. Defensive line could be a problem.

LB - Usually, when the Steelers let a guy like James Harrison go, they have a young gun waiting in the wings. This time, they have a BB gun in Jason Worilds as the favorite to step in. Worlilds may be ok, but he isn't physically capable of replacing James Harrison. That's understandable as James Harrison's don't come around too often. Because of a serious lack of depth, the Steelers were forced to resign an aging Larry Foote. If you watch film from last season, Larry Foote clearly isn't the player he used to be. Lamarr Woodley, accused of not putting the gym time in last season, had a very poor season. Statistically and physically, he took a step backward. Thankfully, Lawrence Timmons emerged as the Steelers best linebacker last season and we can only hope he builds on the momentum. Linebacker, usually a strength, is currently a weakness for the Steelers.

CB - Who didn't want to scratch their eyelids off last season watching Ike Taylor repeatedly get beat deep? His best attribute was his ability to grab the back of the opponent's jersey to eagerly take the passing interference call. However, he's currently the lone starting CB on the roster. Keenan Lewis remains unsigned and has a visit with the Saints scheduled. Lewis emerged last season as a very athletic and capable CB that the Steelers should find a way to sign long term. Cortez Allen emerged as a young splash player and hopefully has a bright future. However, as it stands, the Steelers have an aging CB on the decline and a young and inexperienced player as their lone starting candidates.

S - Ryan Clark had a fantastic 2012 season. He registered 102 tackles, picked off 2 passes, and forced 2 fumbles. He arguably was one of the better safeties in the NFL. We can't say the same for Troy Polamalu though. Another injury plagued season made him a non-factor for most of the year. Polamalu posted a lowly 32 tackles, 1 sack, 1 INT, and 0 FF. Very un-Troy like. Even with Clark's strong season, age is going to be a factor for both players. Oh yeah, there is no plan B for either player in terms of depth. Will Allen? Ouch.


After review, the Steelers have serious concerns. They are aging in key positions with nobody ready to step in and their young talent hasn't proven to be ready to lead the team back to relevance. Aside from play on the field, they've been experiencing problems in the locker room that aren't characteristic of Steeler teams. There's a definite lack of leadership and playmakers on the team. The Steelers would be fortunate to post another 8-8 season in 2013, but don't be surprised if they have a top 10 draft pick in the 2014 draft. Doom and gloom. Mediocrity.


Tuesday, March 12, 2013

Who'd you rather - Tomlin vs. Cowher - A statistical analysis

If you had to choose, which coach has done a better job in Pittsburgh - Mike Tomlin or Bill Cowher? Mike Tomlin has been the head coach of the Pittsburgh Steelers for 6 years, so I compared Cowher's last 6 years in Pittsburgh to Tomlin's tenure. It's interesting to see how philosophies have changed and the ultimate impact they've had on the team. I'm not sure who's better, but take a look at the data and you decide.

Tomlin's Tenure: 2007 - 2012 (6 seasons) --- Cowher's Tenure: 2001 - 2006 (Final 6 seasons)

RECORD
Tomlin: 63 - 33
Cowher: 63 - 32 - 1

Super Bowl Victories
Tomlin: 1
Cowher: 1

DEFENSE

Pass Yds Allowed
Tomlin: 17,921
Cowher: 18,840

Pass TD's Allowed
Tomlin: 105
Cowher: 108

Rush Yds Allowed
Tomlin: 8,211
Cowher: 8,398

Rush TD's Allowed
Tomlin: 41
Cowher: 62

Turnovers Forced
Tomlin: 146
Cowher: 180

Sacks
Tomlin: 254
Cowher: 267

Tackles For Loss
Tomlin: 255
Cowher: 593

Defensive Recap - Overall, Tomlin's defenses have given up 1,106 fewer yards than Cowher's. The greatest differences is in touchdowns allowed, specifically rushing touchdowns. Cowher's defenses allowed 21 more rushing touchdowns than Tomlin's.

Cowher's defenses forced more turnovers and got to the quarterback more often. The stat that jumps off the page is the Tackles For Loss. Cowher's defenses produced an astonishing 338 more tackles for loss than Tomlin's. The increase in sacks, tackles for loss, and turnovers implicates Cowher's defenses did a better job controlling the line of scrimmage.


OFFENSE

Passing Yds
Tomlin: 21,962
Cowher: 19,628

Passing TD's
Tomlin: 151
Cowher: 125

Rushing Yds
Tomlin: 11,015
Cowher: 13,061

Rushing TD's
Tomlin: 71
Cowher: 95

Turnovers
Tomlin: 105
Cowher: 130

Sacks Allowed
Tomlin: 268
Cowher: 224

Offensive Recap: Tomlin's era displays an obvious shift in philosophy. The offense shifted from run-first to pass-first. Part of the shift has to do with the maturation of Ben Roethlisberger and part of the shift has to do with a change in the NFL overall. Regardless of offensive philosophy, both offenses produced an almost equal amount of touchdowns (Tomlin - 222) and (Cowher - 220).

The greatest difference displayed is the sacks allowed. The offensive line has been a black eye for Tomlin during his tenure, but he also asked his quarterback to throw the ball 279 times more than Cowher. Surprisingly, Tomlin's teams have turned the ball over 25 times less than Cowher's, despite the increase in pass attempts.


FINAL THOUGHTS

Deciding which coach is better requires more analysis than the data here, but I was surprised by some of the data points. Tomlin's D gives up less yards and points and Cowher's D created more sacks and turnovers. Tomlin's offenses created significantly more passing touchdowns; Cowher's created more rushing touchdowns. Both coaches won a Super Bowl and had an identical number of wins during the 6 year review period.

So, you make the call. Who's the better coach?

Sunday, March 10, 2013

Screw the financials - Garrit Cole should start season in Pittsburgh

I've spent some time reading opinions on whether prized Pittsburgh Pirates pitching prospect Garrit Cole should make the Pirates opening day roster. Just about every opinion I read suggested Cole should start the season with AAA Indianapolis. The opinions all featured two common points of view:

1: Cole needs a few more games in the minor leagues to fine-tune his game and finish developing his off-speed pitches. More importantly, Cole has very little experience pitching at the AAA level.

2: Strictly financials - By keeping Cole in the minors until at least June, the Pirates can secure an extra year of control of Cole and he would not become a free agent until after the 2019 season.

My opinion on both arguments is bullshit and bullshit. Realistically, what is pitching in AAA for a few months going to accomplish for Cole that he can't fine-tune in the big leagues? Even with his "unpolished" skills, his raw talent makes him a better starting pitching candidate than several of the guys competing for spots in the rotation. When you look at guys like James McDonald, Jeff Locke, Kyle McPherson, and Franciso Liriano - they all have one thing in common. They are all huge quesetion marks. McDonald self destructed after a strong first half last year. Liriano has been self destructing for several years and Locke and McPherson are untested at the big league level. I'd rather have Garrit Cole pitching ahead of all of those guys.

So far this spring, Cole has displayed that he has the necessary tools to compete against professional hitters. Against Spain a few weeks ago, Cole struck out the first 6 batters he faced. Today against the Orioles, Cole efficiently earned a win while only throwing 23 pitches (17 strikes) through 4 innings. Although he allowed a 2-run home run, he only surrendered 2 hits and 1 walk and managed to face only 14 batters through 4 innings. Not too shabby.

On the second argument - Financials. I completely understand the argument. However, if Cole becomes the pitcher we all hope he will be, won't the Pirates try to secure him to a long-term deal a few years before he becomes a free agent? The Pirates were faced with the same dilemma when Andrew McCutchen was knocking on the door of a big league promotion. The Pirates opted to wait until June to bring McCutchen up, but it didn't really matter in the end as the Pirates locked McCutchen up with a long-term deal long before he reached the end of his contract.

Second, the Pirates weren't on the cusp of contention when they considered bringing McCutchen up. There was really no reason to waste a year of arbitration eligibility by rushing McCutchen up to the bigs. However, the organization is in a different position this time around. The Pirates have flirted with contention 2 seasons in a row and a full year of Garrit Cole could be the difference this season. With so many question marks on the back end of the rotation, Cole has the potential to be a significant upgrade and could add depth and stability to a rotation that seemingly doesn't have any. Although he is a question mark as well, it's a calculated risk I'm willing to take.

I believe Cole is ready to compete at the Major League level right now and the Pirates are foolish to potentially sacrifice wins in April and May for the sole reason of securing an extra year of Cole control. The team has the potential to win and contend now and they should capitalize on the opportunity.

Thursday, March 7, 2013

Mike Wallace won't be the same without Big Ben

In his first 4 seasons in the NFL with the Pittsburgh Steelers, Mike Wallace has compiled over 4,000 yards receiving and an astounding 32 touchdowns. He averaged 17.2 yards per catch on his 235 career receptions. Statistically speaking, it shouldn't come as a surprise that he's the most coveted free agent available.

However, my message to the teams considering opening up the pocket book: Caveat Emptor.

Would Mike Wallace have the impressive career numbers if he didn't play with Ben Roethlisberger and his backyard style of football? How many times over the last 4 years has Ben extended plays by scrambling, shredding would-be tacklers, avoiding pressure, and then finding a wide open receiver down the field? It's become commonplace with Big Ben.

When Roethlisberger misses games, Wallace's production dips with it. Big Ben's ability to extend plays and throw a pretty deep ball are part of what has helped Mike Wallace become such a viable deep threat. It's really hard for any corner to cover any receiver for an extended period of time, let alone a receiver with Mike Wallace's speed. How about this astonishing stat - 35% of Mike Wallace's career receiving yards have come on pass plays greater than 31 yards. That has backyard football written all over it.

Mike Wallace's career receiving stats on receptions over 31 yards: 29 Rec, 1,418 yds, 17TD. Yes, 17 TD's.

I've heard 2 potential landing spots for Wallace: Miami and Minnesota. Ryan Tannehill and Christian Ponder...Ryan Tannehill is the better of the 2 QB's, but he is nowhere close to Ben Roethlisberger. Mike Wallace will never again have the same level of success he did in Pittsburgh with Ben Roethlisberger.

Miami seems to be the most likely landing spot from all of the rumor mills I've read. So, I decided to take a look at Tannehill's skill set and how it compares to Ben. I found a few tidbits that really interested me at SunSentinal.com. They reviewed several attributes a quarterback must have to be considered "elite":

4. Playmaking - 2 - He's produced some respectable plays, but let us not pretend that he looks like Robert Griffin III or Andrew Luck out there. You can argue he needs more weapons like his two contemporaries, but don't act like you're seeing countless daring throws that just miss the receivers or tight ends. That's not accurate, and neither is Tannehill most of the season (59.0 percent completion).

5. Arm Strength - 4 - He doesn't have a Joe Flacco arm, but Tannehill has the kind of arm that can throw the 15 yard out on a rope, and that's critical. I'm told only 25 percent of NFL quarterbacks can make that throw. However, we haven't seen many deep balls with touch on it connect in stride. Even Chad Pennington had some of those.

6. Athleticism (mobility) - 3 - Tannehill is effective on roll out plays, but he sparingly uses his mobility, unlike RGIII or Russell Wilson. That's not always a bad thing but it would be nice to see him extend a few drives with his legs like he did twice against Seattle. If Tannehill ran for two first downs a game his score and Miami's offense would improve.


So, Ryan Tannehill lacks elite playmaking ability, arm strengh, touch on deep balls, and athleticism to have superior mobility. Hey Mike Wallace, enjoy your money, but your days as a top flight receiver are over if you are playing with any QB not named Ben Roethlisberger.

Pirates NEED Kyle Lohse

In 2012 with the St. Louis Cardinals, Kyle Lohse was absolutely incredible. Lohse posted an incredible 16-3 record with an even more incredible 2.83 ERA. He led the league in winning percentage and games started while finishing 7th in Cy Young voting. Despite his video-game like statistics, he is currently unemployed and can't find a job.

A few factors contribute significantly to Lohse's current unemployment status:

* If a team signs Lohse, they must forfeit their 1st round pick in the upcoming draft.

* Lohse is 34 years old and is said to be looking for a 3 year deal in the neighborhood of 60-65 million.

* Securing a long-term deal with a mid 30's pitcher is risky due to injury concerns.


I believe that the shrinking market for Lohse will force him to lessen his contractual demands. He may consider signing a one year pillow contract similar to what Edwin Jackson did last year. Jackson signed a 1-year, 11 million dollar deal with the Nationals and parlayed that into a 4 year, 52 million dollar deal with the Cubs. However, if I am GM of the Pirates, I'd consider giving going "all in" on Lohse preferably with a 2 year deal. Will he be expensive? Yes. However, Lohse currently isn't in a position of leverage because of the 1st round pick forfeiture and the Pirates may be able to sign him at a more reasonable number.

Reasons why the Pirates must make this move:

1. Lohse would immediately bump Burnett out of the #1 role. The rotation would transform the Pirates from pretenders to contenders overnight. Imagine the top 3 starters in the rotation being Lohse, Burnett, and Rodriguez! That resembles a REAL rotation that would rival nearly every rotation in the NL.

2. The Pirates have (2) 1st round picks. They would have to surrender the 14th overall pick, but they still own the 9th overall pick because Mark Appel didn't sign after being drafted last year. They could use one of their picks to get better now without totally mortgaging their future.

3. Hopefully in June, Garrit Cole will be joining the rotation. Add him to Lohse, Burnett, and Rodriguez and it might be the best rotation in the NL.

The Pirates are quietly assembling a quality team. Offensively, the team has the capabilities of packing a punch. Strenghening the starting rotation could help transform this team from a .500 or slightly better club to a division winning club. The Pirates have already opened up the wallet a little more this year, but this move makes sense and could be a defining moment in Pittsburgh becoming a baseball town again.

Hoka Hey