Sunday, November 12, 2006
DAISUKE MATSUZAKA - BACK OF THE ENEVOLPE FINANACIAL ANALYSIS
If the reports are true, the Sox will be paying about $90 million to get D-Mat on the Fenway mound. My guess is that the pitcher will have BOSTON on his chest for a minimum of five years.
Assuming the following about the Sox:
* a 5% revenue growth each year over the next five years
* a net tax rate of 40% on revenue
* a mid-90‘s win total and a postseason appearance each of the next five years would earn an additional $16.4 million in year one according to Vince Gennaro’s work in the 2006 Red Sox Annual
With that being said, the Sox through NESN would need to bring in $13.5 million or about $450,000 per start from Japanese revenue sources for the D-Mat investment to return a positive cash flow over the first five years. I see a NESN Japan broadcasting D-Mat’s 30+ starts On Demand for $3 a pop.
If the reports are true, the Sox will be paying about $90 million to get D-Mat on the Fenway mound. My guess is that the pitcher will have BOSTON on his chest for a minimum of five years.
Assuming the following about the Sox:
* a 5% revenue growth each year over the next five years
* a net tax rate of 40% on revenue
* a mid-90‘s win total and a postseason appearance each of the next five years would earn an additional $16.4 million in year one according to Vince Gennaro’s work in the 2006 Red Sox Annual
With that being said, the Sox through NESN would need to bring in $13.5 million or about $450,000 per start from Japanese revenue sources for the D-Mat investment to return a positive cash flow over the first five years. I see a NESN Japan broadcasting D-Mat’s 30+ starts On Demand for $3 a pop.
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