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Why would a Japanese millionaire want to buy the Seattle Mariners baseball team, when he has admitted that he has never played in or even seen a baseball game? Cash is the answer: major league baseball, like professional football, basketball, and hockey, is now big business with the potential to bring millions of dollars in profits to owners. Not very long ago, however, buying a sports franchise was a hazardous investment risked only by die-hard fans wealthy enough to lose parts of fortunes made in other businesses. What forces have changed team ownership from sports-fan folly to big-business savvy? Why has The Wall Street Journal become popular reading in pro sports locker rooms? And why are sports pages now dominated by economic clashes between owners and players, cities with franchises and cities without them, leagues and players' unions, and team lawyers and players' lawyers? In answering these questions, James Quirk and Rodney Fort have written the most complete book on the business and economics of professional sports, past and present. Pay Dirt offers a wealth of information and analysis on the reserve clause, salary determination, competitive balance in sports leagues, the market for franchises, tax sheltering, arenas and stadiums, and rival leagues. The authors present an abundance of historical material, much of it new, including team ownership histories and data on attendance, TV revenue, stadium and arena contracts, and revenues and costs. League histories, team statistics, stories about players and owners, and sports lore of all kinds embellish the work. Quirk and Fort are writing for anyone interested in sports in the 1990s: players, players' agents, general managers, sportswriters, and, most of all, sports fans.
Diamond Dollars is a fresh, provocative, insightful, and analytical look at the business of baseball by author Vince Gennaro, a consultant to MLB teams. Gennaro addresses some key questions that affect how teams make decisions, how they assemble their roster, and ultimately, their bottom line: How does winning affect revenues for each team? How much value does a berth in the postseason generate for the Red Sox and Yankees? What is the Yankees’ marginal revenue vs. marginal cost of winning? What is the economic value of a highly productive Twins’ farm system? Why is a player’s value “situational”, depending on the competitiveness of his team and the market in which he plays? How much was Carlos Beltran worth to the Mets in 2006? How can we quantify Derek Jeter’s “marquee value”…his ability to draw fans? What is the relative cost of developing talent vs. buying it in the free agent market? How can we quantify Nomar Garciaparra’s injury risk and its impact on his dollar value? What is the dollar value of Cubs’ fans loyalty to their beloved team? How have the Red Sox, Yankees and Cubs built their team as a brand? How much Babe Ruth was worth to his Yankee teams of the 1920s and 1930s.? Baseball teams may have thought conceptually about some of these issues, but Diamond Dollars gives them the math to measure the effectiveness of their thinking and practices. This edition includes a 2013 preface by the author and a foreword by Jim Beattie, former Executive VP and General Manager of the Baltimore Orioles and Montreal Expos. “Diamond Dollars provides an insightful look at the business of baseball—at the free agent market, teams’ scouting and player development systems, and how clubs market their brands. The book mixes Vince’s business acumen as a top executive at a Fortune 50 company with his passion for the national pastime.” -Mark Attanasio, Chairman and Principal Owner, Milwaukee Brewers “Vince Gennaro shows a profound understanding of the economics of a team’s baseball decisions. His analyses of a team’s win-revenue relationship, the player development system and player valuation, make for a remarkably innovative examination of the baseball front office model that’s just as informative for a baseball executive as for a fan.” -Chris Antonetti, General Manager, Cleveland Indians “Diamond Dollars offers up exciting and stimulating new ideas about the business of baseball. It provides a set of metrics for decisions that have typically been a “gut feeling” for many organizations. I think teams should make this required reading for everyone in their organizations.” -Jim Beattie, former Executive VP and General Manager, Baltimore Orioles and Montreal Expos “Vince Gennaro has written the best book I’ve read on the business of baseball. It serves as both a “how-to manual” for baseball owners and a tour guide for fans who scratch their heads at the things their teams do. It should find plenty of readers in both camps.” -Dave Studenmund, Editor, The Hardball Times Annual
This is the second volume in a series examining the economics of sport. It looks at issues such as how the changing financial structure of sport is putting cities at risk, race and player behaviour in the 1987 NFL Strike, and gender equity and the economics of college sports.
As early as the 1880s, baseball owners and sportswriters were decrying the greediness of players as the leading threat to the national pastime. Nearly a century later in 1976, the Player's Association was able to finally tear down baseball's permanent reserve clause--the contract language that essentially bound a player to a single team until he was released or traded--and owners and sportswriters again insisted that the competitive balance of the game was threatened by player greed. The rhetoric from the baseball establishment did not match the on-field reality. From 1981 to 1993, the first significant era of free agency in the sport's history, all 12 of the National League's teams finished first at least once, as did 11 American League teams. From 1994 through 2001, however, there was a pronounced separation in strength between the haves and have-nots, as the local revenue streams of major markets such as New York and Boston overwhelmed the capabilities of small market franchises in such cities as Tampa, Montreal, and Milwaukee. This work examines how the sport has prospered and suffered during the free agency era, based in large part on how the game's various revenue streams are allocated. It further examines the revenue sharing plan in baseball's current collective bargaining agreement, identifying flaws that may well undermine its long-term effectiveness. It also explores how the baseball expertise of some organizations has allowed them to flourish despite the lack of revenue.
Starting with a major survey of the economics of sport, this volume involves primarily a comparison of the European and American models of sport, how to restructure leagues to make them more competitive, the analysis of gate-sharing mechanisms, the economic impact of promotion and relegation and a comparison of broadcasting regimes.
Professional baseball players have always been well paid. In 1869, Harry Wright paid his Cincinnati Red Stockings about seven times what an average working-man earned. Today, on average, players earn more than fifty times the average worker's salary. In fact, on December 12, 1998, pitcher Kevin Brown agreed to a seven-year, $105,000,000 contract with the Los Angeles Dodgers, the first nine-figure contract in baseball history. Brown will be earning over $400,000 per game; more than 17,000 fans have to show up at Dodger Stadium every night just to pay his salary. Why are baseball players paid so much money? In this insightful book, legal scholar and salary arbitrator Roger Abrams tells the story of how a few thousand very talented young men obtain their extraordinary riches. Juggling personal experience and business economics, game theory and baseball history, he explains how agents negotiate compensation, how salary arbitration works, and how the free agency "auction" operates. In addition, he looks at the context in which these systems operate: the players' collective bargaining agreement, the distribution of quality players among the clubs, even the costs of other forms of entertainment with which baseball competes. Throughout, Dean Abrams illustrates his explanations with stories and quotations -- even an occasional statistic, though following the dictum of star pitcher, club owner, and sporting goods tycoon Albert Spalding, he has kept the book as free of these as possible. He explains supply and demand by the cost of a bar of soap for Christy Mathewson's shower. He illustrates salary negotiation with an imaginary case based on Roy Hobbs, star of The National. He leads the reader through the breath-taking successes of agent Scott Boras to explain the intricacies of free agent negotiating. Although studies have shown that increases in admissions prices precede rather than follow the rise in player salaries, fans are understandably bemused by skyrocketing salaries. Dean Abrams does not shy away from the question of whether it is "fair" for an athlete to earn more than $10,000,000 a year. He looks at issues of player (and team) loyalty and player attitudes, both today and historically, and at what increased salaries have meant for the national pastime, financially and in the eyes of its fans. The Money Pitch concludes that "the money pitch is a story of good fortune, good timing, and great leadership, all resulting from playing a child's game -- a story that is uniquely American."
An economic history of baseball during the Depression.
The incredible inside story of power, money, and baseball's last twenty years. In the fall of 1992, America's National Pastime is in crisis and already on the path to the unthinkable: cancelling a World Series for the first time in history. The owners are at war with each other, their decades-long battle with the players has turned America against both sides, and the players' growing addiction to steroids will threaten the game's very foundation. It is a tipping point for baseball, a crucial moment in the game's history that catalyzes a struggle for power by three strong-willed men: Commissioner Bud Selig, Yankees owner George Steinbrenner, and union leader Don Fehr. It's their uneasy alliance at the end of decades of struggle that pulls the game back from the brink and turns it into a money-making powerhouse that enriches them all. This is the real story of baseball, played out against a tableau of stunning athletic feats, high-stakes public battles, and backroom political deals -- with a supporting cast that includes Barry Bonds and Mark McGwire, Joe Torre and Derek Jeter, George Bush and George Mitchell, and many more. Drawing from hundreds of extensive, exclusive interviews throughout baseball, The Game is a stunning achievement: a rigorously reported book and the must-read, fly-on-the-wall, definitive account of how an enormous struggle for power turns disaster into baseball's Golden Age.
Szymanski and Zimbalist pay special attention to the rich and complex evolution of baseball from its beginnings in America, and they trace modern soccer from its foundation in England through its subsequent expansion across the world.
A New York Times bestseller Foreword by Doris Kearns Goodwin The longtime Commissioner of Major League Baseball provides an unprecedented look inside professional baseball today, focusing on how he helped bring the game into the modern age and revealing his interactions with players, managers, fellow owners, and fans nationwide. More than a century old, the game of baseball is resistant to change—owners, managers, players, and fans all hate it. Yet, now more than ever, baseball needs to evolve—to compete with other professional sports, stay relevant, and remain America’s Pastime it must adapt. Perhaps no one knows this better than Bud Selig who, as the head of MLB for more than twenty years, ushered in some of the most important, and controversial, changes in the game’s history—modernizing a sport that had remained unchanged since the 1960s. In this enlightening and surprising book, Selig goes inside the most difficult decisions and moments of his career, looking at how he worked to balance baseball’s storied history with the pressures of the twenty-first century to ensure its future. Part baseball story, part business saga, and part memoir, For the Good of the Game chronicles Selig’s career, takes fans inside locker rooms and board rooms, and offers an intimate, fascinating account of the frequently messy process involved in transforming an American institution. Featuring an all-star lineup of the biggest names from the last forty years of baseball, Selig recalls the vital games, private moments, and tense conversations he’s shared with Hall of Fame players and managers and the contentious calls he’s made. He also speaks candidly about hot-button issues the steroid scandal that threatened to destroy the game, telling his side of the story in full and for the first time. As he looks back and forward, Selig outlines the stakes for baseball’s continued transformation—and why the changes he helped usher in must only be the beginning. Illustrated with sixteen pages of photographs.