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The Biz of Baseball :: Business of Sports Network
Mariners Post Record $23.3M Profit in '06 PDF Print E-mail
MLB News
Written by Maury Brown   
Monday, 05 March 2007 06:45

MarinersThe Seattle Mariners posted a record $23.3 million profit last season, according to the club's annual report to the Public Facilities District that oversees Safeco Field stadium operations. The report, which is not yet online, was obtained by the Seattle Post-Intelligencer. As reported by the Seattle PI:

The report, obtained Friday by the Seattle P-I, also indicates a record $32.6 million in the "special calculation" accounting category agreed to between the PFD and Mariners to determine the amount of income accumulated before the franchise begins sharing profits with the PFD.

An increase in national revenues, received in the fiscal year ending Oct. 31, is part of the reason the team was able to raise payroll to a record $111 million for the upcoming season despite attendance dropping to 2.48 million, the lowest total since 1995.

"It's unusual for the bottom line to come out so high," said Kevin Callan, executive director of the PFD. "But Major League Baseball is in great financial position and all the sources of revenues are strong, outside of local ticket sales. Baseball is in a good place right now."

The article reports that part of the windfall was due to the $450 million sale of the Washington Nationals to the Lerner family. The article implies that all 30 clubs split the $450 million sale, which is incorrect. While the sale of the club was $450 million, not all the proceeds were split between the 29 Clubs. Of the $450 million, only $100 million was distributed with the rest reportedly placed in a "labor fund". What was the final take home for the 29 owners after the sale to the Lerners? $3.448 million per club.

 
Schilling Re-Brands Entertainment Business: 38 Studios PDF Print E-mail
MLB News
Written by Press Release   
Monday, 05 March 2007 06:07
Curt SchillingMajor League Baseball Pitcher Curt Schilling announced today that 38 Studios, LLC, will be the official corporate name of the entertainment company he launched last fall. Schilling introduced 38Studios.com apparel last week during a press conference following his first Spring Training start of 2007 for the Boston Red Sox.

"Our vision as a company is to build something revolutionary, to be the leader in the entertainment industry. The executive team I put in place, lead by 38 Studios' President Brett Close, felt this name was a more accurate reflection of what our company is working to achieve," said company founder and CEO Curt Schilling.

The 38 Studios brand will deliver not only massively multiplayer online games, but a broad spectrum of immersive products.

"The name 38 Studios captures the scope of our goals," Brett Close said. "Our mission is to create ground-breaking intellectual properties that inspire a vast selection of entertainment experiences."

Regarding the number 38, "It's not only about what we're going to accomplish, but how," Close continued. "38 is Curt's number, of course. Anyone familiar with Curt recognizes that he represents excellence,
integrity, and achievement. These are attributes intrinsic to our people, our organization, and our products."

Close and members of the executive management team will be attending Game Developers Conference 2007 (GDC) in San Francisco this week, March 5th - 9th. It will be the team's first appearance at an electronic gaming
industry show on behalf of 38 Studios.

38 Studios is planning a mid-March launch of its official company web site, http://www.38Studios.com.
Read more...
 
Is MLB On-Pace to Break Ticket Sales Record? PDF Print E-mail
MLB News
Written by The Staff   
Monday, 05 March 2007 03:03

MLBMLB may be on pace to break all-time season ticket sales… again. As reported yesterday, the Dodgers are on pace to break season ticket sales, but they aren’t the only ones seeing up-ticks in sales. While many clubs are just now releasing individual game sales, many clubs are reporting increases. As Eric Fisher of the Sports Business Journal reports:

  • The Yankees have sold nearly 3.3 million tickets for the upcoming season, with their full-season-equivalent ticket sales of more than 34,300 standing as easily the highest in baseball and more than 650 above their 2006 total.
  • Mets ticket sales are up more than 30 percent so far, and club officials are projecting a year-end total of about 3.8 million.
  • In Chicago, the White Sox are targeting their first year above 3 million in attendance.
  • The Cubs’ season-ticket waiting list spiked by more than a third, to 35,000 people due in part by the hiring of Lou Piniella and the off-season spending spree.
  • The Cardinals have used their World Series title to secure a staggering 98 percent renewal rate for their season-ticket base.

Other mid-to-low tier clubs are seeing bumps as well, including Philadelphia, Toronto, Milwaukee, Texas, San Francisco, and Tampa Bay, which is expected to see “an attendance bump of about 100,000 this year to nearly 1.5 million, which would be its best season at the turnstiles since 1999.”

 
MLB Properties to Get Behind Alyssa Milano Apparel Line PDF Print E-mail
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MLB News
Written by The Staff   
Monday, 05 March 2007 03:43

Alyssa MilanoLooking to boost its share in women’s apparel in the sport’s clothing category, MLB Properties will help market Alyssa Milano’s line of licensed casual wear. As reported by the Sports Business Journal:

MLB concessionaires Aramark, Centerplate and Delaware North Sportservice will sell Milano’s new Touch line of women’s and juniors clothing at 11 ballparks this season. It will also be available from outside retailers.

Milano’s venture reflects “a part of the market we haven’t touched yet, putting a high-end product on the casual and younger fans who are more fashion conscious,” said Greg Sim, MLB Properties’ director of licensing, apparel and headwear. Women’s apparel now accounts for about 18 percent of baseball’s licensed clothing sales.

MLB is promoting the clothing line through an online contest in which fans can register at MLB.com and team sites to win a trip to Los Angeles and join Milano at a Dodgers game.

 
Red Sox Interested in Joining Yankees in China PDF Print E-mail
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MLB News
Written by The Staff   
Monday, 05 March 2007 01:14

Red SoxThe Red Sox are interested in playing the Yankees in China. Two weeks ago, the New York Yankees announced to MLB and the Chinese Baseball Association that they were interested in playing the first major league game there. Now, Larry Lucchino of the Boston Red Sox says they would like to join them. As reported by Bloomberg News:

"We would be happy to do that,'' the president of the Red Sox told Bloomberg Radio in an interview to air this weekend. "We'll flip a coin to see who's the home team.''

In terms of the Yankees showing interest in China, Lucchino added:

"I did hear Randy [Levine] say that,'' Lucchino said. "I've been meaning to pick up the phone and call him and say `Randy, you pick the city, we'll pick the time and we'll see you there.'''

Levine and General Manager Brian Cashman were among Yankees officials who visited China in January to form a partnership with the nation's baseball association that will help coaches and players learn about the sport.

Told of Lucchino's comments, Levine responded with a gentle reminder that the Yankees have already taken the lead in building relationships in China.

"Larry has my number and he knows where to reach me,'' Levine said in an e-mail. "He should call me before we leave for our next international trip.''

 
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