John Perricone, a San Francisco fan at Only Baseball Matters who (not unreasonably) wants the Giants to win while they have the game's best player, points out that operating losses are not inconsistent with profitable investment:
[Owner Peter Magowan] said the Giants will lose in the neighborhood of $15 million, same as they did last season, despite ticket sales that likely will exceed 3.2 million for a fifth straight season. He said the team made money in the first three seasons at SBC Park.
...the Giants are valued at $368 million dollars, and were purchased for $100 million. From that standpoint alone, Magowan's suggestion that the Giants couldn't afford a free agent like Guerrero, for instance, is poppycock.
In Magowan's defense, he's making a profit maximizing decision here: paying big bucks to Guerrero or a top-notch pitcher won't put many more fannies in the seats this season. But the approach of the Giants does suggest that Magowan is not much of a sportsman.