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NPB budget forecast for 2011 in the black

by on Sep.29, 2010 @ 4:10 am, under NPB

The NPB held a special meeting today and went over the financial reports for the new year beginning in October (2011 estimate).

During a previous meeting on the 6th, one or more teams (the articles I've read only mention the Rakuten Eagles) expressed their concerns with initial forecasts that supposedly put the 2011 budget in the red because of the Japan - Korea Championships.  But after making adjustments to potential revenue streams, the NPB was able to work out a forecast that puts the 2011 budget in the black (an increase of 300M yen over this year's 4B yen).

It should noted, however, that the NPB is also getting a nice boost from their increase in yearly membership fees (from 70M yen to 100M yen, or an extra 360M yen), so this return to the black may not necessarily be due to growth.

In any case, this will be the first time the NPB sees their forecast in the black since 2007 (the last two budget forecasts were in the red).


The team owners also held a special meeting on Tuesday to discuss how the current pension system should be handled.  According to published reports, the owners debated how money should be split when / if coverage for the current pension system ends.  The owners also deliberated whether or not teams should be responsible for paying money into the pension system when there are a lack of funds (this would be if a new pension system is set up).

One of the problems with the current system, asides from the fact that a tax break law the system heavily depends on expires on 3/2012, is that it also apparently lacks sufficient funds in order to pay out the 5.5% interest.

The owners also decided that they would try to come up with a solution to the pension problem during the November owner's meetings.

2 comments on “NPB budget forecast for 2011 in the black

  1. muratafan

    I can pretty much tell you why they are forecasting in the black: many of the Pa-league teams are either cutting salaries (see: Rakuten, probably Seibu since they won’t need both Brown and Fernandez and Orix since they are not likely to need Carabaiyo, Baldaris, LaRocca AND Cabrera) and/or posting (see: Rakuten and Nippon Ham). The only teams standing pat are probably Lotte and Softbank.

    Japanese budgeting is classic ‘expectation management’ and fun to watch!

    1. Gen Post author

      Well, we’ll certainly see soon enough if you’re right. I do agree that some of these teams will probably cut back on their foreigners, like Orix.

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