online viagra us confezione cialis 20 mg generic cialis berlin metformin 500 mg uses cialis 15 mg prices cialis 20mg hlywd buy 10mg viagra cialis 20mg professional levitra cheapest online buy tetracycline uk buy online wellbutrin viagra 100mgusa stopping 10mg lexapro wellbutrin xr generic sublingual viagra 150 mg kosten viagra 100mg online pharmacy lexapro cheap 5mg. cialis zithromax 250 mg std zoloft generic difference viagra online buying 100mg zoloft dose cialis 100 mg overnight actoplus metformin generic clomid 40 mg zithromax online eu viagra online sites viagra generic cheap synthroid 125 mg clomid online uk buy levitra mastercard 250 mg of phenergan viagra professional buy kamagra 10 mg buy wellbutrin usa buy synthroid cheap buy kamagra china mail order viagra augmentin 1000 mg dawkowanie buy zithromax cvs diflucan compresse 200 mg nexium online compare online pharmacy dapoxetine a amoxil 500 mg lexapro 10mg generic womens viagra online levitra generico contraindicaciones online viagra drugs taking 2 20mg levitra priligy online andorra 20mg lexapro insomnia buy cialis brampton beipackzettel cialis 10mg viagra gel buy diflucan 200mg capsules generic wellbutrin companies buy cheap doxycycline valtrex 500 mg posologie generic viagra eu overnite cialis 5mg 50 mg lasix anwendung xenical 120 mg mexican viagra online buy kamagra polo buy levitra plus celebrex 200 mg migraine synthroid dosage .05 mg cialis 2.5 mg cukup is zithromax generic propranolol hydrochloride 80 mg 60mg prednisone dog generic valacyclovir valtrex buy zovirax budapest kamagra 100mg erfahrung fungsi zovirax 200mg viagra manly generic propecia 5 mg uk buy mexican viagra doxycycline 50mg iv doxycycline 100mg alcohol clomid tablets 50mg vibramycin doxycycline 100mg cialis mg 5 40 mg levitra safe online synthroid cialis 10 20 50 mg cialis 30 lu 100 mg diflucan 300 mg generic viagra good zoloft dosage 12.5 mg order nexium 40 mg ordering valtrex canada cialis uk 40mg buying viagra singapore 20mg generic levitra 50mg clomid anavar purchase viagra 100 mg cialis buy jakarta stopping 25 mg zoloft nolvadex 40mg cipro 500 mg tablet buying nexium valtrex 500mg packungsbeilage zovirax dispersable 200 mg generico nexium 40 mg difference 50 100mg viagra metformin zydus 1000 mg problemas cialis generico werking cialis 5 mg viagra 100 mg funziona propranolol 100mg buy cialis makati legal cialis online order cialis 10 mg buy cialis shop mg phenergan viagra mexico generico viagra buy now buy doxycycline generic generic cialis c20 buy priligy 30 mg levitra 20mg liechtenstein metformin backorder order Cialis 120 Tabs controindicazioni cialis generico levitra 300mg priligy buy online cialis online authentic levitra 10 mg contraindicaciones ubat clomid 50mg propranolol inderal 40mg zithromax 40mg erfahrungsberichte viagra online clomid 50mg cm zovirax de 800 mg bactrim syrup 100mg cheap levitra walgren sildenafil viagra 50mg canada cheap cialis cialis fda online viagra original 100mg generic erythromycin cream strattera 25 mg prospect golden viagra 3800 mg generics of viagra levitra cheaper alternatives viagra 25 mg pret viagra original 25mg generic lexapro dose xenical generic online kamagra sildenafil 10mg clomid cheap 100 generic v synthroid 5mg cialis equivalent cialis pills 20 mg cialis online ru zoloft 50 mgs augmentin 625mg bnf lisinopril tablet 5mg viagra generic drugs cialis 5 of 10 mg tab levitra 20 mg cialis 20 mg istruzioni metformin 500 mg generic cialis 20mg features cialis 20 mg walmart zithromax 1000 mg zoloft 35 mg wellbutrin borderline personality wellbutrin er generic buspar mg generic4all cialis synthroid generic issues augmentin 500 mg tabletki yellow generic cialis lisinopril 20mg price xenical online order lisinopril 20 mg prescription esomeprazole nexium generic fish tetracycline 250 mg cheapest lasix online order valtrex canada doxycycline 100mg adalah celebrex celecoxib 200mg cialis kup online viagra generika 50 mg difference generic propecia 5mg lexapro affair generic viagra yet prednisone 30 mg tablets nexium 20 mg gastritis erythromycin digestive disorders 25 mg de viagra zithromax 500 mg dosering viagra online ideal generic wellbutrin weight 10mg of lexapro cialis price 20mg clomid 50 mg results take 3 5 mg cialis kamagra 100 100 mg buy condom viagra efectos viagra 25 mg 800 mg viagra gold doxycycline stada 100 mg viagra 100 mg prescription viagra mg 25 lisinopril 10mg lupin viagra 25 mg rezeptfrei samenstelling nexium 20 mg erythromycin 800mg 80 mg lexapro lexapro prescription online buy red viagra 200 lexapro buy australia sildenafil viagra 100mg getting doxycycline online buy 1 single viagra cheap kamagra 150mg generic viagra europe metformin 1000 mg generic 2.5 cialis cheap viagra generico 100 mg propranolol comprimidos 40 mg buy doxycycline vietnam cipro 800mgs cheap zovirax 400 mg 400 mg doxycycline chlamydia nexium buy canada 20 mg active cialis viagra usa 100mg prospect metformin 500 mg viagra generic brazil 5mg of cialis bula zoloft 100mg 160 mg of strattera viagra cheap cheap levitra 20 mg efectos cheap india viagra clomid 50mg online cheapest generic viagra 100 using 40mg cialis tried cialis 800mg lexapro 10mg or 20 lexapro generic now viagra dosge generic phenergan 12.5 mg suppository kamagra 150mg dosage glucophage 1000 mg prix viagra generico 25 celebrex 500mg cialis 800 mg black buy viagra placebo 10 mg levitra pricing bactrim buy online cialis generic cialis 800 mg cialis reviews zovirax 200 mg 25 tablet buy propranolol hydrochloride 200 400 mg viagra dose generic lexapro 10 mg cheap levitra 100mg phenergan 10 mgs cipro 500mg liquid augmentin de 1000 mg discount generic propecia generic viagra mg augmentin 875 mg 5 days cialis tadalafil generic buy cialis real allergic generic wellbutrin zovirax 800 mg chickenpox synthroid 75 mg price buying erythromycin generic cialis illegal lisinopril doc generici generico viagra bula blueberry 100 viagra generic doxycycline 100 mg dog diflucan cps 150 mg buy cialis superdrug kamagra dubai buy lexapro 20 mg escitalopram cialis 5 mg x 14 generic nexium mexico kamagra gel 20 mg lasix furosemide 40mg purchase propranolol online buying viagra tijuana cialis 5 mg discount cialis order online generic zoloft withdrawal bulk buying viagra lexapro alternatives generics buy metformin usa cialis 10 mg fiyati generico viagra chile viagra condoms online tryed 200mg kamagra valtrex tab 500mg lexapro 10 mg ahumada buy nolvadex sydney pfizer viagra 500mg levitra 20mg wikipedia buy levitra drug valtrex mgs 1000 levitra 5 mg tablets purpose metformin 500 mg buy 40 mg cialis diflucan medicine generic cialis 500 mg generic cheapest cialis black buy viagra poland propranolol hcl 10 mg dubai buy viagra citalopram buy online achat levitra 20 mg bugiardino lasix 25 mg posologia cialis 10 mg viagra online kroger periactin 4mg tablets 50 costo cialis 0.5 mg discount viagra 100mg danger generic levitra levitra substitute generic cialis online genuine buy finasteride propecia cialis 20 mg divisibile generic lexapro 2012 buy generic propecia nederland zovirax 800 mg online viagra 50 mg.tablets prednisone 5 mg tablet generic tetracycline 500mg viagra online nongeneric cheap levitra nz viagra order cialis duration levitra 20 mg generic cialis amsterdam lasix generic furosemide wellbutrin 300 mg tablets diflucan nail mg wellbutrin buy online comprar online viagra viagra online reliable zoloft 200mg dosage order zithromax azithromycin 200 mg clomid bfp viagra dose mg prices viagra 50mg cheap levitra 10mg buy viagra bc generic clomid 50mg xenical generic 120mg synthroid digestive disorders test cialis 20 mg buy diflucan internet generic levitra valif propecia thailand online buy propranolol 40mg 20mg nolvadex day nexium 40mg obat viagra generico recife valtrex online cheap wellbutrin at 450 mg lexapro anxiety disorder levitra 10 mg uk 100mg viagra generic cheap 150 mg viagra kamagra 100mg reviews generic cialis double cialis 5 mg cena viagra cialis buy online viagra 100 buy zithromax 1000mg 5mg cialis cheap cialis 20mg attention zoloft 50 mg engorda 230mg viagra levitra 20 mg yorumlari 600 mg of celebrex prednisone 30 mg prices prednisone 60mg taper viagra 100mg 90 pills levitra 10 mg siparis prednisone 5mg tab 800mg zovirax buy doxycycline prescription 800 mg bactrim viagra gold online buy cialis proffessional lisinopril 20 mg 12.5 mg buy official cialis 40mg propranolol 150mg clomid success acyclovir generic valtrex diflucan mgs cialis order turkey generic viagra 2019 lexapro 10 mg wikipedia viagra online kaufen doxycycline acne buy viagra 6800 mg doxycycline mono 75 mg amoxil 400 mg suspension cialis 20mg forum nexium 40mg online order wellbutrin sr 50 mg prednisone taper lisinopril online canadian generic to strattera generic lisinopril 3759 buy overseas viagra cialis 2.5 mg buy obat zithromax 500 mg fda lexapro generic generic cialis fda strattera 25 mg used cialis 20 mg .70 cents medexpress generic viagra celebrex 200 mg gel lisinopril 20 mg prospect cialis 5 mg yahoo lasix 20 mg online clomid online prescriptions levitra online 10 pills celebrex generic medication 5 mg propranolol anxiety arrested buying cialis clomid 50 mg zwanger lexapro 15mg generico lasix online prescription viagra 100mg 16 medicine buspar 10mg levitra 10mg alcohol cialis generic problems lexapro generic side buy now cialis viagra generico italia buy valtrex walmart lisinopril generic version 56 erythromycin 250mg 150 mg wellbutrin effective generico de bactrim dividere viagra 100mg levitra reviews 20 mg cialis 5mg fta lexapro 20 mg presentacion viagra 50 mg teilen diflucan 150 mg embarazo paris buy viagra doxycycline 200 mg iv buy clomid cost cheap viagra 150 mg cialis mg20 celebrex 200 mg administrare buy diflucan medication zithromax 1000 mg buy propranolol 10 mg recreational zoloft 200mg propranolol 40mg lch male order cialis amoxil 500 mg treatment viagra 50mg which toronto buying viagra generic levitra europe super viagra cheap using 25 mg viagra xenical generico comprar nexium 40 mg tabletes nexium 40 mg cpdr buy nexium 40mg lisinopril 40 mg statin 600mg red viagra cialis 10mg 48 buy some cialis generic levitra manufacturer levitra vademecum 10 mg cialis 50 mg tadilalaf 120 mg strattera drinking lasix cp 25 mg 100mg zoloft review cialis 5 mg cheapest buy kamagra nz order propecia cod cialis 20mg reviews xenical online paypal levitra orosolubile online doxycycline online generico viagra funziona cialis dosaggio 40 mg buy propecia eu took 300 mg wellbutrin erythromycin 500mg uk clomid 150 mg buy cialis prague buy viagra.cz viagra sales cheapest levitra 10mg generic zoloft online bestellen
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 475 guests online

Atom RSS

LWIB: Reducing the Cost of Player Development, An Alternate View on Competitive Balance, Tidbits PDF Print E-mail
User Rating: / 15
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?