prilosec coupon lamictal medication generic names online paharmcy canada no perscription dalacin c 300mg price laxifen tablets at walmart oracea dosage for acne propecia on the phone order trittico online kaufen orabet soccer predictions sildenafil ratiopharm kaufen motrin 800 ibuprofen tablets where to buy finasteride online pharmacy review cart duetact generic digoxin therapeutic levels for heart failure hydrodiuril dosage of tylenol ovral birth control synthroid thyroid medication dosage proventil inhaler coupons 2014 buy candy echeck budesonide nebulizer solution dosage benicar 5mg without prescription augmentin dosage pediatric doxycycline for cheap viagra billed and shipped from u s cialis tadalafil 20mg viagra samples by mail pregnant man thomas beatie before man walmart viagra price buy domperidone in usa venta de mistoprostol en usa tadapox reviews on apidexin lamictal withdrawal symptoms how to buy clondine metazole tablets for sale vpxl male enhancement lynoral tablets computers flonase vs nasacort cialis 60mg commander americain dapoxetina shopping buy orlistat diet pill awc drugstore testosterone cream for women benefits baclofen medication for alcohol abuse treatment xerograx pastillas de leche ropinirole hcl 0.25 mg tablet tinidazole shipped overnight delivery secnidazole tablets 1 gm at walgreens store progesterone suppositories and pregnancy tizanidine side effects taking flexeril 10 mg cyclobenzaprine dosage obat nizoral mometasone cream poison ivy hydroxyzine pamoate 25mg for dogs noroxin shampoo best drugstore foundation for oily skin aprovel 150 mg fentanyl transdermal patches quick online orlistat kamagra gel for sale doxepin medication for neuropathic pain periactin medication cyproheptadine antibiotics forsale on line benemid probalan aristocort r ointment generic hydrochloride trihydrate arthrotec 75 mg coupon internet pharmacy quick delivery buy accutane online with paypal what is triamterene hctz mailinorder colchinchin ciprobay 500 mg side effects cholesterol lowering foods cholesterol lowering diet sotalol atrial fibrillation medameds rapidshare filemedazole duloxetine hcl diarex stone tools cytotec online without prescription online canadian pharmacy viagra echeck fastest online cialis viagra ersatz rezeptfrei order cialis greece carafate 1gm tablets algondones pharmacies lergigan fassler amoxil 875 mg tretinoin 0.05 saroten 25mg sertraline viagra scam sites acnotin acheter diovan medication in mexico paxil for anxiety cheao non generic viagra real viagra to buy fedex viagra generic seroquel 25mg dosage singulair side effects in children anxiety estrace side effects ivf tadapox canada octreotide drip gi bleed canadian overnight betnovate cream medicine fentanyl powder for sale cialis daily for sale advair diskus cost without insurance compra de alli online fuenllana centro educativo cocoyoc zyrtec vs claritin vs allegra vs benadryl nootropil 800 mg pharmacy around the world best meds online ordering periactin canadian doxcycline no prescription adipex p 37.5mg tablets buy dilaudid online medsindia reviews diclofenac potassium brand name prilosec coupons printable stromectol 3mg tablets discontinued rumafen 50mgrxcanadarxdiler cialis 5 mg prix pharmacie zithromax 250mg singapore diprostene en ligne buy letrozole online no prescription how to prevent anastrozole side effects in women what is aldara medication thai pharmacy online where can i get ampicillin quickly gamerz gear tech lanoxin dosages flagyl 200mg shop cialis online vermox sciroppo quanto costa canadian pharmacy levitra professional accutane online approved bactroban ointment for boils abilify maintena side effects ketorolac tromethamine injection uses tantra oral jelly side effects jasmine pilchard gosnell 2014 where to buy prednisolone 5mg diazepam 10mg can i crush clahymedi tablets content analysis in qualitative research organique acai berry price maximum dose levitra nosipren prednisone 20mg for dogs arthritis hip exerceses azulfidine 500 mg para que sirve ampicilina 500 mg injectabil prospect sotalex medication for depression prednisone over counter female viagra samples deliver mercilon tramadol controlled substance in indiana lodine online without precription finasteride 5mgbuy herbal viagra australia cialis generic pharmacies do you need a prescription for lamisil insurance institute for highway safety booster lotrisone cream medication uses ventolin coupon folcres panalab oxa betanoid syrup lexapro withdrawal symptoms side effects forum carprofen 100mg chewable revatio for pulmonary hypertension cost how much does nexium cost at walmart canadian drug store online does pregnenolone cause weight gain albendazole dosage for pinworms nitrofurantoin mono mac 100mg cheap glucovance medication drug dilantin side effects medication albuterol inhaler no prescription usa relafen 500 mg tablets salazopyrin sulfasalazine and folic acid doxycap antibiotics for sinus healt prednisolone to buy lergigan miteqlesofat cialis over counter insulin resistance diet book astelin side effects azelastine nasal spray medic canada triamterene potassium levels normal lanoxin side effects doctor india pharmacy viagra tinazol cream puff chloroquine side effects doctor celexa withdrawal symptoms help kamagrafast brighton homes cardinal stritch university milwaukee deltasone 20mg ambien skelaxin 800 mg side effects euroclinix uk 1channel how i met your mother trazadone without prescription cytoxan side effects prevacid lansoprazole 30mg capsules cholesterol medications with least side effects trimox 500mg capsule picture side effects of dyazide medication unisom side effects overdose tabletten pressendatadalafiilitadalafila inderal for migraines levlen birth control and acne hydroxyzine hcl 25 mg tablet side effects pentrexyl 500 mg capsules drug interactions online ed drugs order cialis from canada pharmacy lasaoren removal guide pharmacy in costa rica lidocaine hydrochloride jelly for hemorrhoids taking ceftin for uti using lamisil cream for nail fungus paxil withdrawal can cause ocd zyvox non prescription cumpara viagra online fara reteta zoloft for anxiety and panic attacks motrin 800 ibuprofen prescription ropinirole 0.25 mg drug side effects dermizol crema bordeaux nebivolol hcl tabletsneurocet precio del viagra en farmacias generic levitra paypal cozaar medication generic does insurance cover viagra quality rx prescriptions doxepin hcl and weight gain codeine money pak vitamin b12 deficiency treatment no script online pharmacy elavil for sleep reviews hydroxyzine hcl 25 mg tablet interactions intimax 100 tablets review obat metronidazole cyrux medicine shoppe zyrtec coupons printable coupons rizatriptan benzoate 10 mg side effects is there a generic for viagra how to make pheromones to attract women primox medicine levitra 10mg duphaston et depo provera lisinopril 20 mg 12.5 mg trazodone overdose treatment albuterol inhaler dosage for kids abilify generic available ic naproxen 500 mg side effects bystolic benefits of buy provera sertraline 50mg tablets atenolol medication information xylocaine injection for knee cheap pain pills no prescription hydrodiuril manufacturer coupon nak beli generic viagra buy gabatin flomax generic name is buy xanax online canadian pharmacies 24 h pharmacy diabete e cialis spain viagra over the counter ketorolac injection package insert drug extra erectile dysfunction levitra consegna rapida when to take letrozole for fertility how to get high on buspar order cialis phone trazodone withdrawal success stories retin a 0 1 super kamagra london risnia medicine dictionary depakote withdrawal symptoms children cialis viagra generika non prescription tetracycline nuvigil and provigil difference donde puedo comprar cytotec sin receta difference between albendazole and mebendazole clonidine 0.2mg where to buy kamagrafast crooksville hot wire liquid water content no prescription viagra online canada zyprexa side effects medication abilify generics rumafen diclofenac sodium 50mg treatment levoxyl recall 2015 chevy what is best ed pill pills that work like viagra erection pills over counter yasminelle tablettalbot compra segura viagra generica viasek 50mg prednisone medrol 4mg dosepak of 21 imigran tablets phil generic for bystolic 10 mg comprare alli levitra side effects for women generic name for dyazide medication trusted tablets pharmacy accutane se clavamox without an rx where to buy real generic viagra percocet 5 325 vs vicodin es 750 ip 103 do u get high off this pill flonase side effects medication cytotec without prescriptions cialis sears pharmacy buying alli from canada achat de viagra au alendronate 70 mg tablets levlen ed paroxetine hcl 20 mg aldactone 100 mg when to take viagra for best results confidex reviews of 50 cycline enterprise rental car potassium chloride 20 meq sunsuria development sdn bhd directors chair voltaren retard 100 aurochem laboratories tadalafil atosil nebenwirkungen chemotherapie dikloron jelena oxybutynin 10 mg er side effects human pheromones and attraction bupropion 300 mg no prescription absence of thyroxine would result in how does viagra work after ejaculation clomid pregnancy symptoms safeway to buy geniric cilias phenergan no prescription medicstar reviews on 50 eutirox 75 mcg of synthroid tantalum metal suppliers zanaflex dosage 4mg diclofenac sodium alcohol abilify coupons savings rogaine foam review thin hair antibiotics without prescription uk flomax drug medication promethazine codeine cough syrup cicloferon aciclovir cream 5 viagra details in hindi viagra reliable generic supply side effects prednisone 20 mg zenerx side effects cheap viagra tablets for sale buy cialis in canada acheter colchicine viagra online usa anxiety attacks vs panic attacks can i buy albuterol over the counter metoprolol succ er 25mg binotal 500 mg avelox for uti infection viagra price in mumbai where can i one buyeao polar meds pharmacy acheter finasteride propecia manfaat obat grathazon kaplet pay by check pharmacy ventolin dosage progynova pills without prescription ovral birth control side effects buying levitra on cod zetia coupons schering plough viagra sold in usa raymeds complaints against attorneys buy crestor online no prescription estrace cream side effects on men lumigan eye drops januvia and pancreatic cancer incidence prostata sintomas y prevencion de enfermedades femara side effects breast cancer australian pharmacies no prescription wellbutrin xl side effects forum clomid 100mg online canadian pharmacy radio ad viagara $5 paxil to buy uk nizoral 2 shampoo walgreens clomiphene citrate 50 mg tawat cytoxan side effects in dogs what is a thyroxine free blood test diflucan on amazon cipa pharmacy price viagra phenergan next day air delivery anxiety disorder symptoms in children forzest 20 reviews navidoxine meclizine hydrochloride antivert arthritis gloves condolences for loss of pet samonas prime moving doxycycline 100mg capsules dosage crestor price philippines 150 catafast dosage for amoxicillin cialis under the tongue oracef 250mg testosteroneorlistat zyban smoking weight loss adipex 37.5 mg coupons mebendazole antiox side effects propranolol in usa euthyrox 100 buy plavix manufacturers metformin pharmacy europe generic daily cialis anxiety medication listing buy verapamilo online comprar viagra barata healthyman viagra pillshealthymanshealthymen prednisone online order malegra 100 tablets propecia for women results mirapex lawsuit patients viagra special offers cheap xenical cymbalta and weight gain can you drink alcohol after zpack luvox cr withdrawal symptoms glucovance 5 500 dose no prescription cialis minocycline acne treatment duration eutirox 50 side effects increasing metabolism after 60 ocean fitness myambutol 400mg amoxicillin clindamycin phosphate gel usp 1 side effects vitamin world coupons 40 off viagra pills on sale aprovel 300mg side effect order zestril from canada rx one phamercy zofran dosage for children by weight para que sirve amantadina clorfenamina paracetamol nolvadex for men side effects risk rhinathiol infant syrup cleocin antibiotic treatment side effects daly cialis canada buy viagra online in praha canadian online pharmacy fast delivery unisom for morning sickness safe romanian pharmacy online olanzapine dosage range zantac coupons 2014 bystolic coupon card online parmacy tinidazole treatment for amoebiasis prozac reviews pharmacie ama©ricaine online duetact contraindications for electrical stimulation canadian no prescription needed motrin ingredients dosage posso assumere viagra con priligy cialis online cheap vigrx plus reviews ingredients thyroxine side effects free propecia sample clopidogrel bisulfate tabs levamisole wormer for chickens elimite cream medicine over the counter phenergan dosage for adults buy albenza onadron simple minds order cialis online in canada reviews content validity example carprofen for dogs rimadyl vs aspirin starcef capsule ulaval duvadilan tablet 10mg differin side effects adapalene fasigyn tinidazole dosage levitra manufacturer coupon walgreens stores 5 minoxidil for women side effects can i use latisse for eyebrows tristan shone implicane sertralina para nexium 40mg online order china zestril lisinopril buy brandcialis usa online pharmacy buy prednisone dog buying viagra oline frome mexico lipothin review clomiphene 60 pills 25 mg no script usa how much are viagra polls at mejiers discount voucher wellbutrin weight loss forum buy augmentin on line misoprostol in south african pharmacies cabergoline for sale macrodantin side effects dose viagra express mail promethazine codeine dosage albendazole over the counter uk didi ki suhagraat diamox sequels 500mg capsules pliva 433 nebivolol hydrochloride nizoral shampoo alcohol and cialis topamax dosage for weight loss topiramate
Home Pete Toms LWIB: Reducing the Cost of Player Development, An Alternate View on Competitive Balance, Tidbits

Like Shoot to Thrill - An AC/DC Tribute on Facebook!

An authentic tribute of AC/DC that covers the best of the Bon Scott era and the best of Brian Johnson's material

Who's Online?

We have 1289 guests online

Atom RSS

LWIB: Reducing the Cost of Player Development, An Alternate View on Competitive Balance, Tidbits PDF Print E-mail
User Rating: / 14
PoorBest 
Pete Toms Article Archive
Written by Pete Toms   
Sunday, 07 February 2010 23:51

Last Week in Bizball by Pete Toms

This week in “Last Week in Bizball”, MLB looks to college baseball as they attempt to reduce player development costs, an alternative take on the importance of competitive balance to the success of professional sports leagues and some quick tidbits.

REDUCING THE COST OF PLAYER DEVELOPMENT

MLB’s goal of reforming the Rule 4 (aka “amateur draft“) in the next round of CBA negotiations (the current CBA expires in December 2011) has inspired much debate amongst baseball pundits. Typically these arguments are focused on the potential of reforming the amateur draft to abet increased competitive balance in MLB. The changes to the draft that are most commonly debated - slotting, allowing trading of picks, expanding the geographic boundaries - are likely part of a larger strategy aimed at resolving a larger problem in MLB. That problem is the hundreds of millions of dollars that MLB spends annually on player development. In his recent paper Reflections on Salary Shares and Salary Caps, economist Andrew Zimbalist pegs annual player development costs in MLB at an average of $20 million per club. Of that $20 million, an average of $11.5 million per year is devoted to the salaries of minor league players. According to Mr. Zimbalist, MLB is spending upwards of 6% of their annual revenues on player development. If there is one area in which the MLB business model is inferior to the other “big 4” leagues, it is certainly player development costs. Boston Red Sox Chairman Tom Werner made this point during a conversation with SportsBusiness Daily in March 08:

"Every major league club spends about $20 million a year on growing their talent," Werner said. "We have a minor league system and coaches and trainers and all kinds of personnel that just aren't equivalent in football or in basketball, where you have the college system as a way of being their minor league."

LWIB, Buster Olney wrote for ESPN that MLB is considering investing in college baseball, in part, to overhaul their player development system.

The health of college baseball is of great concern to Major League Baseball, of course, because it represents another avenue of player development, in the way that college football is a feeder system for the NFL. Historically, the relationship between MLB and college baseball has been shaky at best, largely because they compete for the same players. But in general, the stronger college baseball is, the better off Major League Baseball will be.

So there is sentiment within MLB right now about wanting to help the college game. It could do so, of course, by very publicly funding scholarships, in concert with the NCAA. To put the dollars in perspective, for the cost of one Stephen Strasburg signing bonus of $15.6 million, MLB could fund 390 full $40,000 scholarships at college baseball programs, creating a lure for coaches. In theory, MLB could fund one full ride at every Division I college in the country, which would be a pretty big deal. Or maybe MLB could pick a conference or group of teams in an area where baseball is more prevalent, such as Florida, Texas or California, and fund scholarships there.

In October, Kiley McDaniel wrote for Baseball Prospectus that introducing slotting in the amateur draft will result in fewer high school players being drafted. In turn, this could bring about a “new golden age” for college baseball:

A clear pro-club byproduct of the hard-slotting system is that many more high school players will be going to college. There were 42 millionaires in the 2009 draft, and 30 recommended slots calling for a seven-figure bonus. There were scores of well-over-slot six-figure deals that would not exist in a slotted draft. One agent characterized the ramifications: "The top 20-30 high school players will sign, and once you get out of the first few rounds, it will be all college kids [being drafted]." This would, in turn, change the face of college baseball and the low minors…..

The talent influx would move college baseball toward a new golden age. Most players being drafted will be two or three years older than they are now. Combine that with a possible draft date change, and short-season minor leagues are probably dead. With less roster spots to fill, the draft can (finally) be shortened from 50 rounds. With so much talent playing in college, the exposure and popularity would climb, although it likely would happen slowly. Eventually, college baseball will get to the point where baseball fans may actually know many of the players being drafted. The draft could become a true off-season event like it is for every other sport. This would allow for more evaluation time from scouts, and would create more fans and revenue, helping make baseball more of a year-round media story, like the NFL.

John Manuel, Editor in Chief at Baseball America, wrote last month that a boom period for college baseball may already be underway:

The other bit of news that came out of the ABCA convention in Dallas was how well college baseball as a sport is doing, at least financially. The new TD Ameritrade Park is being built in downtown Omaha and will provide a venue, built at a cost of around $150 million, that is essentially there just for the College World Series. Creighton will play there, but somehow I don't think Creighton would have built a $150 million ballpark with four clubhouses on its own.

Television ratings hit a peak for the CWS in 2009, and interest in the game has never been higher…..

….in the last few years because college baseball has become profitable. The NCAA even referred to baseball as a "revenue sport," lumping it in with men's basketball and football in an Academic Progress Report in 2009.

The MLBPA and MLB need to find a compromise in the next CBA that addresses “rookie compensation”. While “slotting” is seen by many as the key to shifting revenues from rookies to veterans, it is only one element in the larger challenge of reducing the approximately $600 million annual cost of player development. With Michael Weiner’s constituency lobbying for a greater share of the revenue pie, reducing the money spent on player development and shifting it to veteran players could be an attractive solution for both sides. Much needs to happen before the minor league affiliate system of MLB is dismantled or even significantly scaled back. Nonetheless, spending $600 million per year on player development seems an untenable proposition for MLB. Reforming the amateur draft might be only the beginning of much more significant changes in how MLB develops players.

SELECT READ MORE TO SEE AN ALTERNATIVE TAKE ON COMPETITIVE BALANCE, AND OTHER BIZ TIDBITS

 

 

AN ALERNATIVE TAKE ON THE IMPORTANCE OF COMPETITIVE BALANCE

The greater the competitive balance in a professional sports league, the greater the popularity of that league. So goes the conventional wisdom of fans and pundits. The importance of competitive balance in MLB has been much discussed since the uber wealthy New York Yankees won the 2009 World Series. Many argue that the continued dominance of large revenue franchises will lead to fans in small revenue markets losing interest in “their” teams. These same people would point out that while MLB attendance declined approximately 6% for the 2009 season - largely due to reduced capacities in NYC - more worrisome is that 22 of 30 franchises experienced declines, perhaps in part because their fans have lost faith in “their“ teams ability to compete for a playoff spot. Rich Luker of The Luker Co. wrote last month in the SportsBusiness Journal:

…While most of us in the sports industry are focused on keeping our businesses afloat, we need to remember that the financial success of sports is not why we enjoy or watch the games. From my earlier research, I am reminded that the biggest value of being a sports fan is having hope for the outcome and sharing that hope with those who feel the same way.

The NHL, NBA and NFL promote competitive balance in their leagues via the salary cap/floor model. MLB promotes competitive balance via a combination of the Competitive Balance Tax (aka luxury tax) and revenue sharing. In all of the “big 4”, centralized revenues are collected by the league and “shared” amongst the franchises. Some argue that the purpose of these initiatives is more about limiting player compensation than promoting competitive balance. As well, there is a dissenting opinion that greater competitive balance does not result in greater popularity for professional sports leagues. LWIB, Phil Birnbaum compared the EPL to MLB at his Sabermetric Research blog (HT Rob Neyer). Mr. Birnbaum notes that there are vastly greater disparities in both payroll and competitive balance in the EPL as compared to MLB, yet the business of the EPL is booming.

So, what I'm thinking is: if British soccer fans can tolerate huge pay differences, and accept the fact that it's almost always going to be one of the richest teams that win ... well, maybe baseball fans can accept that too, especially since it's on a much smaller scale. Maybe the New York Yankees can become baseball's Manchester United, the Red Sox can become Chelsea, and fans of the Marlins and Padres can hope to fluke into the postseason and engineer an upset.

Major League Baseball might very well lose me as a fan if they do that, but if they can make it up in revenues from everyone else, who am I to say they're wrong?

Numerous sports economists have studied the impact of competitive balance on the popularity of pro sports leagues and concluded that it is of little relevance. Economist Dave Berri wrote in 07:

….the link between competitive balance and attendance has been extensively studied…..

And what does this literature indicate? Competitive balance does impact demand, but it doesn’t appear to be very “important.” At least, dramatic changes in balance do not seem to have a very dramatic impact on league attendance. Given this result, I am not sure the “optimal level of balance” is something leagues should actively seek…

(For more, see The Sports Economist blog here)
Last year both Brewers owner Mark Attanasio and Pirates President Frank Coonelly publicly voiced their support for reducing the economic disparities amongst MLB franchises. However, both men and their small revenue peers must also be aware that success for the Yankees and Red Sox et al (the big markets) benefits them as well. As always, finalizing the next CBA is largely dependent on finding compromise between small and large markets. But a goal of true parity might never be in the best economic interests of MLB.

QUICK TIDBITS

Mike Ozanian of Forbes doesn’t anticipate good times for Cubs fans, at least in the short term.

….Major League Baseball winked at some $200 million the Ricketts family loaned the team for working capital and ballpark improvements. MLB is counting this money, in essence a loan from the Ricketts to themselves, as equity because to call it debt would have put the franchise in jeopardy of surpassing the league's debt ceiling of 15 times ebitda…….Last year the Cubs payroll was $134 million, third most in baseball and is stacked with high-priced players with no-trade clauses. The Cubs won 83 games last season and missed the postseason. Their debt and bloated payroll makes it highly unlikely they will be able to improve any time soon.

Harris Interactive released a poll on the preferences of American sports fans (HT Don Walker):

…Of those who follow one or more sport, over one-third (35%) say professional football is their favorite -- an increase of 4% over last year.

Baseball comes next as 16% of sports followers say that is their favorite sport, followed by 12% who say college football. Both of these are unchanged from last year. Football leads over baseball by 19 points: its lead between 2006 and 2008 was 15 points.

AND

Each sport has groups of people who are more of a fan and also less of a fan. For professional football, African Americans are more likely to say it is their favorite (45%) as are those aged 40-49 (42%) and those aged 25-29 (38%). On the reverse side, Hispanics (26%), those aged 18-24 (27%) and Westerners (28%) are less likely to say professional football is their favorite sport.

Baseball has its own sets of fans. Hispanics (24%), Easterners (21%) and College graduates (19%) are all more likely to say baseball is their favorite sport while African Americans (7%), those with a post-graduate degree (11%) and Southerners (12%) are less likely to say so.

The Biz of Baseball reported on the lawsuit that MLB Properties recently filed against the trading card company Upper Deck. For more, see The Sports Law Blog here.


Pete Toms is an author for the Business of Sports Network, most notably, The Biz of Baseball. He looks forward to your comments and can be contacted through The Biz of Baseball.

Follow The Biz of Baseball on Twitter Twitter

FacebookFollow the Business of Sports Network on Facebook

 
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?