San Francisco Giants: What Bill Neukom's Resignation as CEO Will Mean for 2012

Mark Purdy of The San Jose Mercury News broke the news Tuesday afternoon that San Francisco Giants General Managing Partner and CEO Bill Neukom has been asked by the club's executive ownership committee to step down following disagreements over how to manage the franchise's increasing revenues following the 2010 World Series championship.

Neukom took over as CEO in 2008, following the retirement of Peter Magowan, who led a group of investors in purchasing the franchise in 1992 amid rumors that the Giants would move to Florida.

According to Purdy's report, the team's executive ownership committee felt that Neukom was making key financial decisions for the franchise without its consultation.

Larry Baer, currently President and Chief Operating Officer of the Giants, will fill Neukom's vacated position.

How Neukom's Departure Could Affect the Giants in 2012 and Beyond

One of the major disagreements between the franchise's 10-person executive committee and Neukom, involved Neukom's philosophy of using increased revenues from the Giants 2010 World Series championship to increase payroll.

Apparently, the executive committee's position was to place the increased revenue into a "rainy-day fund" for use in more difficult financial times down the road.

With Neukom being ushered out, this could mean that the next general managing partner may take the stance that the Giants should be conservative in their spending habits come this offseason, especially when it comes to upgrading the club's woeful offense, which is currently last in baseball in runs scored.

If that is indeed the position of the new CEO, the Giants will be staking the near future of the franchise on Buster Posey and Pablo Sandoval.

If these two young stars aren't able to shoulder the offensive load for this club next season, and with free agency looming for ace starters Matt Cain and Tim Lincecum (in 2013 and 2014, respectively), this could spell disaster for a team that reached the pinnacle of the baseball world in 2010.

That's because Cain and Lincecum will not have much incentive to stay in San Francisco if they continue to receive poor run support, and overall revenues will decline if the Giants fail to remain competitive.

All Eyes Will Be On Larry Baer

So now the ball will be in Larry Baer's court (er...glove), and the decisions made over the next two to three months could have a critical impact on San Francisco's prospects for reaching the postseason in 2012.