Bud Selig (quite possibly the worst commissioner of any professional sports league in the history of organized sports) recently commented that he is happy with the current economic system in Major League Baseball. For those of you who don't know, baseball is different from all the other pro leagues in America. Instead of a salary cap, MLB uses revenue sharing to bring competitive balance to the game.
In theory, larger-market teams kick millions of dollars back to smaller-market teams so that these also-rans can sign better players and invest more in their player development programs.
This sounds pretty nice, doesn't it? Everybody (at least nowadays) likes parity in professional sports.
The problem is that small-market teams have figured out that, like Max and Leo in The Producers, it pays to lose. Why spend the revenue-sharing money on better players or facilities when you can basically pocket the money (which is a gross misappropriation of these funds per MLB), put a terrible team on the field, play in front of 3000 fans, and make a pretty penny?
Here are a few examples from the 2006 Forbes report on the business of baseball:
The Devil Rays (my AL team) finished 61-101 (36 games behind first place) last year. They made a profit of $20.3 million.
The Nationals finished 71-91 (26 GB) last year. They made $27.9 million.
The Royals finished 62-100 (34 GB) last year. They made $20.8 million.
In essence, teams like the Yankees and Dodgers are subsidizing the premeditated (and quite profitable) failure of teams like the Devil Rays and Royals. This is out and out fraud and something must be done to force small-market teams to use these funds to put a better product on the field.
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2 comments:
superficially, it appears that those teams that perpetually lose are essentially being subsidized by the winning teams. however, it is akin to the "american way" to make a home team available to the masses. these home teams, by extension, a right of americana, could not survive without subsidation by the "winning" teams.
keep in mind that for many people, baseball, no matter what the W vs. L perspective is america's game.
further, people don't always go to the nearest stadium to see their "home" team but rather go see their real home team in action.
finally, while often considered a pure sport for the sake of sport, there is no busiess in america more concerned about profits, endorsements and a plethora of other money-generating enterprises associated with baseball. face it, if there wasn't significant profits to be made by the sport, there would be no baseball. those that own and operate the franchises are perhaps among the most brilliant and creative executives of american industry.
I WOULD LIKE A COMMENTARY ON THE MICHAEL VICK DOG FIGHTING ENTERPRISE.
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