why is there a methotrexate shortage wellbutrin drug wiki medicine called evista indocin in labor and delivery buy calan online craigslist belfast maine plavix tablets purchase on line is cleocin legal in uk ranitidine dosage calculator effexor xr cost canadian where to find children;s benadryl frye boots online promo code buy avodart online in usa med cab brand amoxil what are the side effects of bactrim forte cheap cymbalta generic low cost zestril buy generic diclofenac gel online ampicillin without a script needed cod elavil reviews sleep iui and clomid success rates abilify dosage for bipolar how to import buspar phenergan online pharmacies with out prescription buy z pak online where can i get deltasone pills plendil 5 mg tablet toradol uses medrol without prescriptions buy cheap diamox aricept sales 2008 mobic in the uk now can you buy lexapro over the counter how much does asacol hd cost generic zyvox 600 mg antibiotics can i order endep no prescription in the usa buy zaditor in ireland what does compazine do buy diflucan tablets us promethazine supplier in uk med cab casodex cheap genuine tadalis sx online rhinocort reviews where can i get zyloprim pills order actos online without rx meclizine western australia ciprobay wiki trental overnight delivery order pravachol 80 mg what is nexium generic avapro canadian pharmacy order wellbutrin sr online no prescription legal buy clozaril online canada over counter mentax free coupon for requip decadron canada abana no prescription canada generic for lipitor side effects aldactone mg tablet cialis jelly bonus pills famvir buy uk which uk site to buy lamisil arimidex overnight buy silagra online reviews gonorrhea treatment in pregnancy emedicine isoptin online bestellen nizagara brand positioning anxiety in children signs order fincar uk vasodilan max dose safe buy zithromax online buy terramycin for dogs how to use keftab is it safe to order kamagra gold buy erection packs 2 tablets canada there lexapro generic available what does carafate look like tretinoin cream reviews acne orlistat usage uses of tadalafil tablets nizoral brand positioning buying kamagra in london what can fucidin h cream be used for viagra billed and shipped from u.s. trental coupons canada otc buy lamisil pfizer pharmaceuticals stock can you take mirapex daily generic tofranil usa pharmacy buy brand levitra super active cost of viagra plus without insurance buyers of viagra sublingual canada clarithromycin dose for tonsillitis speman tablets himalaya how to buy nymphomax in london buy mentats megaton slimming tablets uk adios i want to pay some elavil buy alesse canada pharmacy online trusted canadian online pharmacies what is minocycline hcl prednisone 20mg dosage instructions what are natural water pills sinemet drugs online purchases buy nizoral uk florida haldol buy zebeta online canada what is prinivil 20 mg dapoxetine tablet sale rumalaya prescription coupon sales cheap kamagra pills generic penegra uk paypal buy rhinocort visa what does a zithromax pill look like cost of generic valtrex at walmart percentage of people who gain weight on depakote cheap viagra uk org lady era coupon code where to buy ralista in canada safely lipitor sales 2008 liquid provera review cipro antibiotic sinus infection avodart dose for hair loss periactin tablets on line to buy alavert forum online cheap prescription online pharmacy reviews viagra floxin rxlist nymphomax paypal prednisone treatment dosage where can i purchase crestor cheap endep sale uk mobic tablets meloxicam bupron sr uses medication colospa no rx viagra super active medicine children aciphex without prescription canada canada pill store colchicine tablets 40mg buy lariam singapore betnovate scalp application price cephalexin buy mexico medrol steroid side effects himalaya lukol tablets review will propecia generic available us glycomet coupons apo doxycycline 100mg side effects furosemide lasix drug class dose of ivermectin for chickens mobic in croatia cheap voveran sr 100 mg midamor online usa no prescription fungsi obat voltaren sr 75 mg how to use penegra 50 order hytrin medication by mail pariet otc australia paxil now does baclofen cause weight gain can you get kamagra oral jelly over the counter buy brahmi online no prescription us buy diabecon without rx reliable online pharmacy india adderall and ambien erowid generic viramune in usa clavamox 500 pilula biaxin to buy in england doxycycline online forum cozaar pills side effects does antabuse come as generic order robaxin usa fucidin 20 mg g cream tretinoin 0,025 shop net what is the best blood pressure medication ortho tri-cyclen generic recall flats to buy liverpool street hoodia side effects long term use mexican pharmacy online hcg fast coreg delivery buy anafranil overseas buy hydrea online india duetact australia pharmacy buy generic norvasc protonix shopping buy prazosin boots pharmacy buy us abilify online prescription drugs mexico where frumil eldepryl where can i buy it where to lotensin buy zofran 40 sildenafil citrate 100mg price cabana drugs atrial fibrillation unisom sleep tablets pregnancy ponstel tablets price buy nitrofurantoin hong kong reviews on finast united healthcare prescription solutions prior authorization form cheapest precose where can you buy acai berry optimum glucotrol xl overnight delivery buy levothroid uk tofranil order on web generic pulmicort respules discontinued cheapest elimite tablets uk clomid false negative ovulation predictor how to properly use benzaclin phenergan delivery fedex pravachol usual dosage nootropil online meds e 401 adderall effects legal to buy evista cialis sublingual prices usa buy tretinoin in canada tulasi in the uk too much synthroid side effects lisinopril overdose side effects missed lexapro dose dizzy buy grifulvin v with no rx non prescription buy aciphex where to buy xenical in singapore generic for plavix 2011 generic flagyl er switzerland clavamox for cats without rx list of tesco stores selling bystolic abilify in usa robaxin and alcohol side effects mifepristone and misoprostol medical termination of pregnancy buying prescription drugs in cancun mexico levitra super active results forum pharmacy rx 1 coupon can buy viagra over counter canadian pharmacy rip off wellbutrin anxiety ocd colchicine over counter singapore we heart it is a medrol dose pack safe in pregnancy most reliable place to buy atarax online online cefadroxil india dilantin drugs for sale order amitriptyline online pharmacy tretinoin cream 0.05 buy online lipothin without prescription miami colchicine discount coupon arthritis where to buy cozaar with amex zyban drug oversea buy generic abana drugs what are the side effects of methotrexate non generic buy atorlip online listaflex carisoprodol 350 mg para que sirve buy brand lotrisone metformin best place to buy strattera in india actoplus met online without prescription order actos 1 diabetes pharmacy buy actos online usa propecia satan eczaneler testosterone replacement therapy for men uk generic cialis soft uk paypal cheap inderal india haldol decanoate package insert buy antivert lowest price como comprar female viagra monthly cost of propecia buy hong kong benadryl allergy what is finast drugs where to buy penicillin g benzathine low price diltiazem uk pyridium online australia lisinopril overnight shipping cheap discount code for omnicef what is albuterol sulfate used for in children daruharidra online pharmacy viagra uk prescription diarex drugstore himalaya rx betnovate free shipping what is tetracycline drugs the chepest arimidex tadacip buy australia alli slimming pills reviews buy viagra same day delivery discount canadian pharmacy cytoxan best generic zyban review companies that sell viagra without a prescription amitriptyline 100 mg for dogs celexa and alcohol best over the counter anxiety medication uk caverta online cheap online pharmacy india phentermine best drugstore liquid makeup for oily skin order trazodone from uk without prescription bystolic without prescription canada propranolol hcl manufacturer india average pharmacy salary ireland free vigraga samples from canadian phramcy canada pharmacies online that sell finpecia buy carafate discount generic lasix pill inderal la 120 mg side effects non generic pyridium lisinopril dose for renal protection how long does it take for doxycycline to kill chlamydia zoloft uk online buy cefadroxil us how to taper prednisone in asthma get zyban las vegas buying acai in bulk cheap no rx diflucan online is evista a prescription drug furosemide online canada where to buy levothyroxine discount best way to get high on pain pills helena indian alliance montana generic form of tamoxifen buy ciprofloxacin hydrochloride online legitimate online pharmacies in india what is ibuprofen 400 mg used for provera 10mg side effects how to take medrol mg methotrexate injection discontinued clomid from canada pharmacy buy aldactone perth australia buy female cialis online with no prescription diclofenac gel drugs for sale ordering professional sildenafil viagra soft propranolol prices cvs dosis aciclovir para varicela reminyl prix en pharmacie en france snovitra super power new zealand ciprobay 500 tablete common side effects of hytrin can you order deltasone my canadian drug store zestoretic woldwide shipping what is imuran for rumalaya price india how to buy malegra dxt buy cheap vpxl buy levothroid 20 owerseas viraga sustiva next day research grade prandin nolvadex pills no prescription diflucan online from usa buying albendazole from canada no prescription canada prescriptions cheap how long does it take for revia to work acheter colchicine maximum daily dose of luvox methotrexate tablets usp non prescription viagra women bystolic 5 mg weight gain 12v lithium ion car battery for sale torsemide australia pharmacy non persciption colchicine buy tricor from canada eurax online cheap benfotiamine medicine online kamagra gold 100mg dosage can youtube buy cialis jelly in ireland online pill store nizoral ships from india rogaine 5 italiano valtrex dosage herpes zoster ks pharmacy online thailand where can i buy keppra in canada best price kamagra uk feldene discount no prescription vytorin sales 2012 malegra dxt pas cher buy online bentyl generic dutas discount medications xenical availability uk list of tesco stores selling colchicine should i buy viagra over the counter canada mps viagra lawsuit buy malegra fxt pills over the counter flagyl tablets atorlip-20 canadian pharmacy where can i buy non drowsy benadryl alesse prix en pharmacie en france cheap alli weight loss uk can you buy acivir pills pharmacy plendil 10 mg cost side effects of drinking alcohol while on flagyl kamagra gold medicine online glucotrol xl in the uk insulin resistance diet plan ampicillin side effects alcohol order generic calan pilex for sale australia sominex over counter adalat generic for antabuse maxaman in croatia omnicef pharmacy coupons xeloda doctors online legal buy toprol xl online canada retin-a cream boots januvia tablets diabetes comprar mevacor en argentina cialis online pricing in canada how to buy diakof order cheapest viagra full form rx doctor;s prescription imuran over counter torsemide tablets 10 mg non prescription rumalaya gel pharmacy is there a generic for bactroban ointment does finpecia really work doxycycline hyclate- antibiotic side effects baclofen online overnight recommended dosage of doxycycline for urinary tract infection abilify overnight buy keflex 50 levlen mist canada where do i buy erythromycin canadian chinese alliance churches association ccaca acronym advair copd coupon protonix medication on line where purchase sominex side effects of fincar 5mg buy xenical 120mg hard capsules buy amitriptyline in the uk zofran price without insurance what are ranitidine pills for can you only get danazol on prescription where to buy aldactone online mexico differin 40mg nitroglycerin explosive video buy snovitra super power mg online buy generic accutane with bonus side effects of taking aygestin can you buy l-tryptophan over the counter prednisone moderate alcohol consumption grifulvin v roche precio argentina how much will cafergot cost flagyl medication uses is viagra over the counter in uk boots robaxin over counter canada what is nexium tablets for buying metformin from canada no prescription buy orlistat hong kong cozaar generic name losartan cytoxan medication where to buy can you buy norvasc over the counter in germany valacyclovir hcl 500 mg tabran zenegra italiano lisinopril side effects forum omnicef canada overnight delivery buy clonidine online paroxetine and alcohol consumption order proventil hfa staxyn how long to take effect how long do i have to take keppra order adalat 3 pharmacy can you buy nizoral at cvs allopurinol and warfarin online pharmacy uk tretinoin 0,05 methotrexate medicine definition many pharmacies japan antidepressant drugs fluoxetine my meclizine coupons buycialisonlinecheap can you buy isoniazid where purchase minomycin cheapest online purchase prevacid best metoclopramide prices albendazole compare prices buying doxycycline in bangkok buy lexapro online viagra online paypal drugs z pack antibiotics warnings buy aleve without a script get estrace toronto overnight pharmacy lasix cheap rosuvastatin cost comparison diabecon shelf life comprar malegra fxt original en madrid viagra canada shop reviews buy lozol pills online buy jelly cheapest kamagra premarin from europe side effects of cytotec comprar bentyl original how to take zovirax un rey en la habana online free prescriptions by mail costco femcare prices usa buyers of pariet canada xenical canadian source fda canada canadian generic pharmaceuticals association order viagra professional online canada trazodone tablets they buy terramycin australia purchase nizoral in us bula prednisona 5 mg best price levitra online singulair cost comparison toradol drugstore.com discount code for liverpool shop health canada retino-a cream 0,025 dulcolax online kaufen xenical results orlistat how much does antabuse cost non persciption proventil chloromycetin italiano dapoxetine 60 mg tablet health canada viagra sublingual best online pharmacy generic avandamet micardis shelf life diclofenac gel pas cher italie buy styplon new zealand online what does trazodone hydrochloride look like glucophage tablets on line to buy aciclovir prices usa billig azulfidine online kaufen overactive thyroid medication and weight gain mexican pharmacy no prescription maxalt delivery online generic aceon tinidazole tablets loose motion lady era generico italiano buy generic viagra plus online no prescription free or low cost lanoxin zetia medicinenet will propecia go over counter ginseng prices in kentucky 2012 side effects of glucophage metformin what is the recommended dose for cymbalta can you buy ciplox 500 in south africa use cialis sublingual coupon online use differin gel 0.1 tadalafil online reviews online abilify purchase neurotin sold in canada purchase accutane 5mg free viagrafix office 2000 tutorials can you buy venlor online is escitalopram better than fluoxetine where to buy allopurinol tablets overnight delivery no prescription ortho tri cyclen pill rx health order lotrisone products buy actos tablets canada comprar naprosyn online cheap exelon 3 mg anafranil 10 mg prospect buy shatavari with paypal
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 1325 guests online

Atom RSS

LWIB: Reducing the Cost of Player Development, An Alternate View on Competitive Balance, Tidbits PDF Print E-mail
User Rating: / 11
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?