A World Series championship could not insulate the Dodgers from the financial realities of 2020.
The Dodgers instituted layoffs “throughout the organization” on Wednesday, joining a number of MLB teams in making cuts as a result of the revenue losses suffered during the coronavirus pandemic. The job cuts are believed to be at least 40 to 50 in all, from virtually every department. The Dodgers had already declined to renew the contracts of a handful of scouts when they expired at the end of September.
“While the Dodgers had a championship season, the organization has not been immune from the widespread economic devastation caused by the coronavirus,” the Dodgers said in a statement acknowledging the layoffs. “Since March, we have worked hard to minimize the impact on our employees. The ongoing economic crisis, however, forces us to make difficult personnel decisions throughout the organization, going forward for the 2021 season.
“This is a heartbreaking decision. This year, more than ever, we are truly grateful for the role each member of our Dodgers family plays in our success.”
In recent interviews, Dodgers team president and CEO Stan Kasten has estimated the team’s financial losses in 2020 at “north of $100 million,” pointing out that the Dodgers’ revenues are among the highest in baseball so their losses are among the highest as well.
The Dodgers have led Major League Baseball in attendance every year since 2013 with annual totals approaching 4 million fans. No fans were allowed to attend games during the 2020 regular season and it is unclear whether that will change in 2021.
Commissioner Rob Manfred told the Wall Street Journal in September that playing 162 games in 2021 without fans would be “economically devastating.” This season MLB said it lost more than $3 billion.
In an interview with CNBC during the World Series, Kasten said “it’s going to take years to catch up” after the financial setbacks in 2020.
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