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A fire sale is the sale of goods at extremely discounted prices. The term originated in reference to the sale of goods at a heavy discount due to
fire damage Fire is the rapid oxidation of a fuel in the exothermic chemical process of combustion, releasing heat, light, and various reaction products. Flames, the most visible portion of the fire, are produced in the combustion reaction when the fuel ...
. It may or may not be defined as a closeout, the final sale of goods to zero
inventory Inventory (British English) or stock (American English) is a quantity of the goods and materials that a business holds for the ultimate goal of resale, production or utilisation. Inventory management is a discipline primarily about specifying ...
. They are said to occur in the financial markets when bidders who value
asset In financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything (tangible or intangible) that can be used to produce positive economic value. Assets represent value of ownership that can b ...
s highly are prevented from bidding on them, depressing the average selling price below what it otherwise would be. This lowering of the price can cause even further issues because it may be inaccurately perceived as
signalling A signal is both the process and the result of transmission of data over some media accomplished by embedding some variation. Signals are important in multiple subject fields including signal processing, information theory and biology. In ...
negative information.


History

The term is adapted from reference to the sale of fire-damaged goods at reduced prices. In ''Proceedings of the Fitchburg ass.Historical Society and Papers Relating to the History of the Town Read by Some of the Members'' the following entry is found:
In December, 1856, the account of an extensive fire in the American House mentions the following occupants: E. B. Gee, clothing; T. B. Choate, drugs; J. C. Tenney, boots and shoes; Maraton Upton, dry goods; and M. W. Hayward, groceries. Maraton Upton removed his stock to No. 9 Rollstone block, and advertised "Extraordinary fire sale; customers are invited to call and examine goods which are still warm."
The term also has a counterpart in "railroad salvage", the discount sale of goods damaged in derailment or other accidents. According to
Plutarch Plutarch (; , ''Ploútarchos'', ; – 120s) was a Greek Middle Platonist philosopher, historian, biographer, essayist, and priest at the Temple of Apollo (Delphi), Temple of Apollo in Delphi. He is known primarily for his ''Parallel Lives'', ...
,
Crassus Marcus Licinius Crassus (; 115–53 BC) was a Roman general and statesman who played a key role in the transformation of the Roman Republic into the Roman Empire. He is often called "the richest man in Rome". Wallechinsky, David & Walla ...
would show up to a burning building with a fire brigade and offer to put out the fire, or sometimes to buy the property at an outrageous discount. If the owner agreed, he would put out the fire. If they refused, he would stand by and let it burn.


Sports

In
professional sports In professional sports, as opposed to amateur sports, participants receive payment for their performance. Professionalism in sport has come to the fore through a combination of developments. Mass media and increased leisure have brought larger a ...
, a fire sale occurs when a
team A team is a group of individuals (human or non-human) working together to achieve their goal. As defined by Professor Leigh Thompson of the Kellogg School of Management, " team is a group of people who are interdependent with respect to in ...
trades many of its veteran players, especially expensive star players, to other teams for less expensive and usually younger players. Teams usually have a fire sale for financial reasons. The term is generally thought of as different from merely "rebuilding" a team, because during a rebuilding process, teams often obtain players who are already in the major leagues or who are close to being major-league-ready, while retaining at least some of their key veterans (such as a
franchise player In professional sports, a franchise player is an athlete who is both the best player on their team and one that the team can build their " franchise" around for the foreseeable future. Overview In the United States, outstanding players were ref ...
) while also getting players from their minor league system; most rebuilding teams have few veterans remaining to jettison in the first place. On the other hand, trades in a fire sale often bring a team
draft pick Draft, the draft, or draught may refer to: Watercraft dimensions * Draft (hull), the distance from waterline to keel of a vessel * Draft (sail), degree of curvature in a sail * Air draft, distance from waterline to the highest point on a ves ...
s and
prospect Prospect may refer to: General * Prospect (marketing), a marketing term describing a potential customer * Prospect (sports), any player whose rights are owned by a professional team, but who has yet to play a game for the team * Prospect (minin ...
s who have little to no major-league experience in their sport, in exchange for proven, experienced veterans. The term comes from the perception that the team is trying to get rid of all its players.


Baseball

In sports, the term ''fire sale'' is especially used in
Major League Baseball Major League Baseball (MLB) is a professional baseball league composed of 30 teams, divided equally between the National League (baseball), National League (NL) and the American League (AL), with 29 in the United States and 1 in Canada. MLB i ...
, where the most infamous fire sale occurred in 1997. Weeks after winning the
1997 World Series The 1997 World Series was the championship series of Major League Baseball's (MLB) 1997 season. The 93rd edition of the World Series, it was a best-of-seven playoff between the American League (AL) champion Cleveland Indians and the National ...
, the
Florida Marlins The Miami Marlins are an American professional baseball team based in Miami. The Marlins compete in Major League Baseball (MLB) as a member club of the National League (NL) East Division. The team plays its home games at LoanDepot Park. The ...
began trading away several of their high salary players and key cogs in the championship run, with
Moisés Alou Moisés Rojas-Alou Beltré (; ; born July 3, 1966) is an American former professional baseball outfielder who has played 17 seasons in Major League Baseball (MLB) from 1990 to 2008. He played in MLB for the Pittsburgh Pirates, Montreal Expos, ...
and
Al Leiter Alois Terry Leiter (; born October 23, 1965) is an American former professional baseball player and current television sports commentator. He played in Major League Baseball as a left-handed pitcher from to for the New York Yankees, Toronto Blu ...
among the first of many to go throughout the off-season and well into the 1998 season. This ended any realistic chance of the Marlins' defending their title. They plummeted to a 54–108 record in 1998, the worst ever by a defending World Series champion. Owner and manager
Connie Mack Cornelius McGillicuddy (December 22, 1862 – February 8, 1956), better known as Connie Mack, was an American professional baseball catcher, manager, and team owner. Mack holds records for the most wins (3,731), losses (3,948), ties (76), and ga ...
put the
Philadelphia Athletics The Philadelphia Athletics were a Major League Baseball team that played in Philadelphia from 1901 to 1954, when they moved to Kansas City, Missouri, and became the Kansas City Athletics. Following another move in 1967, they became the Oakland ...
through a fire sale twice. In 1914, the Athletics lost the
1914 World Series The 1914 World Series was the World Series, championship series of Major League Baseball's 1914 Major League Baseball season, 1914 season. The 11th edition of the World Series, it was played between the American League champion and defending Wor ...
to the "Miracle Braves" in a four-game sweep. Mack traded, sold or released most of the team's star players soon after, in what could be considered as the first fire sale in organized sports. The second and more consequential fire sale came after the 1933 season. On December 12, Mack traded
Mickey Cochrane Gordon Stanley "Mickey" Cochrane (April 6, 1903 – June 28, 1962), nicknamed "Black Mike", was an American professional baseball player, manager and coach. He played in Major League Baseball as a catcher for the Philadelphia Athletics and De ...
to the
Detroit Tigers The Detroit Tigers are an American professional baseball team based in Detroit. The Tigers compete in Major League Baseball (MLB) as a member club of the American League (AL) American League Central, Central Division. One of the AL's eight chart ...
for
Johnny Pasek John Paul Pasek (June 25, 1905 – May 13, 1976) was an American professional baseball catcher in Major League Baseball. Pasek played for the Detroit Tigers in 1933 and the Chicago White Sox in 1934. He batted and threw right-handed. Pasek w ...
and $100,000 and then traded Pasek and former 20-game winner
George Earnshaw George Livingston Earnshaw (February 15, 1900 – December 1, 1976) was an American professional baseball pitcher in Major League Baseball. He played in parts of nine seasons (1928–36) with the Philadelphia Athletics, Chicago White Sox, Brookl ...
to the
Chicago White Sox The Chicago White Sox are an American professional baseball team based in Chicago. The White Sox compete in Major League Baseball (MLB) as a member club of the American League (AL) American League Central, Central Division. The club plays its ...
for
Charlie Berry Charles Francis Berry (October 18, 1902 – September 6, 1972) was an American athlete and sports official who enjoyed careers as a catcher and umpire in Major League Baseball and as an end and official in the National Football League. His fat ...
and $20,000. On the same day he traded another future Hall of Famer, sending
Lefty Grove Robert Moses "Lefty" Grove (March 6, 1900 – May 22, 1975) was an American professional baseball pitcher. After having success in the minor leagues during the early 1920s, Grove became a star in Major League Baseball with the American League's ...
, Max Bishop and
Rube Walberg George Elvin Walberg (July 27, 1896 – October 27, 1978) was an American professional baseball player. He played in Major League Baseball as a left-handed pitcher from through , most notably as a member of the Philadelphia Athletics dynasty tha ...
to the
Boston Red Sox The Boston Red Sox are an American professional baseball team based in Boston. The Red Sox compete in Major League Baseball (MLB) as a member club of the American League (AL) American League East, East Division. Founded in as one of the Ameri ...
for Rabbit Warstler,
Bob Kline Robert George Kline unior(December 9, 1909 – March 16, 1987) was a pitcher in Major League Baseball who played for three teams between the 1930 and 1934 seasons. Listed at 6' 3", 200 lb., Kline batted and threw right-handed. He was ...
and $125,000. Between 1933 and 1935 the Athletics also traded or sold
Jimmie Foxx James Emory Foxx (October 22, 1907 – July 21, 1967), nicknamed "Double X" and "the Beast", was an American professional baseball first baseman who played 20 seasons in Major League Baseball (MLB) for the Philadelphia Athletics, Boston Red ...
,
Al Simmons Aloysius Harry Simmons (born Alois Szymanski; May 22, 1902 – May 26, 1956) was an American professional baseball outfielder who played 20 seasons in Major League Baseball (MLB). Nicknamed "Bucketfoot Al", he had his best years with Connie Mack ...
,
Doc Cramer Roger Maxwell "Doc" Cramer (July 22, 1905 – September 9, 1990) was an American center fielder and left-handed batter in Major League Baseball who played for four American League teams from 1929 to 1948. Career A mainstay at the top of his team ...
, and Jimmie Dykes. The Athletics would never come close to having the success they had before the fire sale and the team eventually moved to Kansas City in 1955. The Athletics went through another major fire sale in anticipation of a move to Las Vegas. In April 2023, the Athletics ceased negotiations with the city of
Oakland, California Oakland is a city in the East Bay region of the San Francisco Bay Area in the U.S. state of California. It is the county seat and most populous city in Alameda County, California, Alameda County, with a population of 440,646 in 2020. A major We ...
, where the team had played since 1968, in favor of constructing a stadium on a plot of land near
Interstate 15 Interstate 15 (I-15) is a major Interstate Highway in the Western United States, running through Southern California and the Intermountain West. I-15 begins near the Mexican border in San Diego County and stretches north to Alberta, Ca ...
. This was eventually changed to the plot of land where the Tropicana hotel and casino sits due to problems with the land that was originally chosen. The fire sale was seen by many as a way to provide a reason for this move. In response, Athletics fans hung several banners deriding team ownership and calling for the team to remain in Oakland at the
Coliseum The Colosseum ( ; , ultimately from Ancient Greek word "kolossos" meaning a large statue or giant) is an elliptical amphitheatre in the centre of the city of Rome, Italy, just east of the Roman Forum. It is the largest ancient amphitheatre ...
, which were controversially cropped out on the
MLB.tv MLB.com is the official site of Major League Baseball and is overseen by Major League Baseball Advanced Media, L.P. (a subsidiary of MLB). MLB.com is a source of baseball-related information, including baseball news, statistics, and sports column ...
broadcast. The fire sale had taken place since the beginning of the 2022 season, when the Athletics suffered their worst season since 1979, losing 102 games. Despite fan protests, during the 2023 All-Star Game, Rob Manfred confirmed that relocation papers had been filed and that relocation proceedings had begun following the approval of a Nevada legislative package providing funding for the move. Another infamous fire sale occurred in 1994. The
Montreal Expos The Montreal Expos () were a Canadian professional baseball team based in Montreal. The Expos were the first Major League Baseball (MLB) franchise located outside the United States. They played in the National League (baseball), National League ...
ended the strike-shortened 1994 season with the best record in the majors. But by the start of the following season, many of the team's young stars had either been traded or lost to free agency. The Expos never really recovered on or off the field from this, and moved to
Washington, D.C. Washington, D.C., formally the District of Columbia and commonly known as Washington or D.C., is the capital city and federal district of the United States. The city is on the Potomac River, across from Virginia, and shares land borders with ...
, as the Nationals in 2005. The Miami Marlins had another controversial fire sale in the 2012–2013 offseason. In a massive, 12-player trade with the
Toronto Blue Jays The Toronto Blue Jays are a Canadian professional baseball team based in Toronto. The Blue Jays compete in Major League Baseball (MLB) as a member club of the American League (AL) American League East, East Division. Since 1989, the team has p ...
, they sent away such players as Josh Johnson, José Reyes, and
Mark Buehrle Mark Alan Buehrle (; born March 23, 1979) is an American former professional baseball pitcher. He played the majority of his Major League Baseball (MLB) career with the Chicago White Sox, playing twelve seasons for the team and winning the World ...
. In the 2017–18 offseason, the Marlins had yet another fire sale. After longtime owner
Jeffrey Loria Jeffrey Harold Loria (born November 20, 1940) is an American entrepreneur, author, and the former owner of the Montreal Expos (now the Washington Nationals) and Miami Marlins of Major League Baseball. Early life Loria was born and raised in a Je ...
sold the team to a group led by former MLB player
Derek Jeter Derek Sanderson Jeter ( ; born June 26, 1974), nicknamed "the Captain", is an American former professional baseball shortstop, businessman, and baseball executive. As a player, Jeter spent his entire 20-year Major League Baseball (MLB) caree ...
and Bruce Sherman, nearly all of the team's star players, notably
Giancarlo Stanton Giancarlo Cruz-Michael Stanton (born November 8, 1989), formerly known as Mike Stanton, is an American professional baseball designated hitter and outfielder for the New York Yankees of Major League Baseball (MLB). He has previously played in ML ...
,
Christian Yelich Christian Stephen Yelich (born December 5, 1991) is an American professional baseball left fielder for the Milwaukee Brewers of Major League Baseball (MLB). He has previously played in MLB for the Miami Marlins. Internationally, Yelich represen ...
, and
Marcell Ozuna Marcell Ozuna Idelfonso (born November 12, 1990), nicknamed "the Big Bear", is a People of the Dominican Republic, Dominican professional baseball designated hitter and outfielder for the Atlanta Braves of Major League Baseball (MLB). He has pre ...
, were traded to different teams across the major leagues. The motive for the team dismantling was primarily to help lessen payroll to pay off the organization's outstanding debt. The team's popularity notably declined in 2018 as a result of the fire sale, with the team's attendance falling to the lowest in Major League Baseball. Another infamous fire sale took place immediately after the 2021-22 MLB lockout, when the
Cincinnati Reds The Cincinnati Reds are an American professional baseball team based in Cincinnati. The Reds compete in Major League Baseball (MLB) as a member club of the National League (baseball), National League (NL) National League Central, Central Divisi ...
traded, refused to sign, or
waived A waiver is the voluntary relinquishment or surrender of some known right or privilege. A waiver is often written, such as a disclaimer that has been accepted, but it may also be spoken between two or more parties. When the right to hold a p ...
most of their star players, including
Nick Castellanos Nicholas Alexander Castellanos (; born March 4, 1992) is an American professional baseball right fielder and third baseman for the Philadelphia Phillies of Major League Baseball (MLB). He previously played for the Detroit Tigers, Chicago Cubs a ...
,
Jesse Winker Jesse Winker (born August 17, 1993) is an American professional baseball outfielder and designated hitter for the New York Mets of Major League Baseball (MLB). He has previously played in MLB for the Cincinnati Reds, Seattle Mariners, Milwaukee B ...
, and
Eugenio Suarez Eugenio is an Italian and Spanish masculine given name deriving from the Greek 'Eugene'. The name is Eugénio in Portuguese and Eugênio in Brazilian Portuguese. The name's translated literal meaning is well born, or of noble status. Similar der ...
. This led to fan protests on social media and at
Great American Ball Park Great American Ball Park is a baseball stadium in Cincinnati, Ohio, United States. It is the ballpark of Major League Baseball's Cincinnati Reds, and opened on March 31, 2003, replacing Cinergy Field (formerly Riverfront Stadium), the Reds' fo ...
, which in turn led to Phil Castellini telling fans "Where are you gonna go?" and "Be careful what you ask for" in an interview with
WLW WLW (700 AM broadcasting, AM) is a commercial radio, commercial news/talk radio station city of license, licensed to Cincinnati, Ohio. Owned by iHeartMedia, WLW is a clear-channel station, often identifying itself as "The Big One". Its studios ...
. The Reds went on to only win 3 of their first 25 games, and ended up with a record of 62–100, which was only the 2nd time the Reds lost at least 100 games in a season.


Other sports

The
Ottawa Senators The Ottawa Senators (), officially the Ottawa Senators Hockey Club and colloquially known as the Sens, are a professional ice hockey team based in Ottawa. The Senators compete in the National Hockey League (NHL) as a member of the Atlantic Di ...
had a fire sale during the 2018–19 season. Several star players like
Matt Duchene Matthew David Duchene (; born January 16, 1991) is a Canadian professional ice hockey centre (ice hockey), centre for the Dallas Stars of the National Hockey League (NHL). He has previously played in the NHL for the Colorado Avalanche, Ottawa Se ...
, Mike Hoffman,
Mark Stone Mark Stone (born May 13, 1992) is a Canadian professional ice hockey right winger and captain of the Vegas Golden Knights of the National Hockey League (NHL). He was selected by the Ottawa Senators in the sixth round, 178th overall, of the 201 ...
and team captain
Erik Karlsson Erik Sven Gunnar Karlsson (; born 31 May 1990) is a Swedish professional ice hockey defenceman for the Pittsburgh Penguins of the National Hockey League (NHL). Karlsson was drafted in the first round, 15th overall, by the Ottawa Senators at th ...
were traded in exchange for declining veterans, prospects and draft picks. Many perceived the fire sale as Senators' management being unwilling to sign stars to long-term, expensive extensions, as many of them would be eligible to become free agents after the season. The Senators would finish dead last in 2018–19, while their former stars found success on other teams, and fan attendance and support dropped significantly due to a lack of good will with Senators ownership and the fanbase. In
association football Association football, more commonly known as football or soccer, is a team sport played between two teams of 11 Football player, players who almost exclusively use their feet to propel a Ball (association football), ball around a rectangular f ...
, clubs which go through financial troubles or are relegated and dropped into a lower division may need to go through a fire sale to reduce their operating expenses or replace the revenue lost from leaving the superior division. Players who are deemed to have overinflated wages or a lack of quality may be sold for low or no transfer fees in order to get their wage off the books.


See also

*
Suggested retail price The list price, also known as the manufacturer's suggested retail price (MSRP), or the recommended retail price (RRP), or the suggested retail price (SRP) of a product is the price at which its manufacturer notionally recommends that a retailer ...


References

{{reflist Pricing Fire Bankruptcy