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Monday, November 21, 2005

National Pastime: How Americans Play Baseball and the Rest of the World Plays Soccer

Two major sporting events will hit the sports landscape next year. For baseball fans, they will be treated to the first ever World Baseball Cup. For the rest of the world, it will be the FIFA World Cup in Frankfurt. One is a major sport’s attempt to reach a more global audience. The other defines it. One league is “open” the other, “closed.” And, both leagues have pros and cons from a business standpoint, which is where Stefan Szymanski and Andrew Zimbalist’s book, National Pastime, truly shines.

National Pastime: How Americans Play Baseball and the Rest of the World Plays Soccer, digs into the history and place in society both soccer and baseball have placed in their respective cultures while tracing their evolutions and events that shaped the league structures and businesses we see today.

On baseball’s side of the ledger, Zimbalist traces the evolution of stick and ball games, most notably cricket, through its various permutations to the game we see today. Key points in this historic evolution were the shift of the game from a predominantly upper-middle class sport of amateur standing, to a game that spread to the middle and lower classes with players paid as professionals, as well as the organization of the owners into tightly controlled leagues. This latter key point outlines the point in history where soccer splits from baseball in its evolution as the business-centric concepts of baseball as an enterprise are not embraced allowing for free expansion of the game of soccer.

The divergent paths create pros and cons. Zimbalist and Szymanski break down key revenue streams, such as television where soccer was broadcast in Europe and the rest of the world, primarily as a public service for most of the 20th Century, to baseball, where it ostensibly cut its first media deal in the 1890’s when Western Union paid the National League for the right to relay game updates to saloons and pool halls. Another key area that is covered is public subsidy of stadiums for baseball stadiums, while many soccer stadiums have become substandard leading to several tragic episodes involving the deaths of fans in the ‘60s, most notably the tragedy involving the Peru-Argentina Olympic qualifying match in Lima where 328 people died due to stampeding of fans, baseball stadiums have become iconic cathedrals to the sport, most of which, funded by taxation.

The question is, will this book be for you? The book moves back and forth between the histories of the two sports outlining the parallels and differences in terms of history, the spread of the game to other parts of the world, the development of labor markets, broadcasting, competitive balance, and most importantly, what both sports can learn from each other. Those that are looking for a well rounded reference guide to the business of sports should look to this book as a mandatory purchase, as both Zimbalist and Szymanski are exceptional at writing about the economics and business of sports without lulling the reader into a coma. The flow of the book between key topics and the relationship’s they have with soccer and baseball are conveniently broken into easily digestible sections. The book may not be for everyone. Certainly those that have little interest in soccer, or conversely, baseball, will find the book’s movement between the two sport histories and structures distracting. Those that wish to have a truly unique and fascinating reference between the game the world views as the most popular, and the game viewed by many as America’s National Pastime will want to keep this book close by as a solid resource.

Maury Brown Posted: November 21, 2005 at 01:17 PM | 22 comment(s)
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   1. fra paolo Posted: November 21, 2005 at 09:09 PM (#1741601)
I picked this book up at SABR in Toronto but owing to pressure of work only recently read it. I thoroughly enjoyed it, except for the last chapter, which attempts to be prescriptive and, like most academic prescriptions, seemed to ramble amid castles built in the air.

I think, however, it unconsciously highlights the fundamental failing of the closed business approach to sports, as embodied by MLB, which is that it is inefficient at long-term structural thinking.

The soccer World Cup, which grew out of an Olympic tournament and the existence of all-embracing national organizations, has really set the standard for cash-generating global competitions. The "open" competitive structure that produced it is better able to sustain such ideas, because the trophy or championship is the point, not the profit. So there's always somebody willing to turn up to play for it, which keeps the competition ticking through the unprofitable early stages.

(Open competitive structures vs closed business structures is a paradigm developed in the book, BTW, as Maury's intro states.)

I actually think that anyone interested in the business of baseball needs to read this book, if only to have the details of an alternative method of organizing a major national sporting league that is equally successful.

When I look at what happened to the two sports teams dearest to my heart, Fiorentina and the Montréal Expos, and the way the different sporting organizations dealt with the problems, I must say that I find more to commend the open structure in terms of offering the fan a better deal.
   2. Richard Posted: November 21, 2005 at 10:55 PM (#1741820)
Wow, your teams are Montreal and Fiorentina? That sucks.

Sounds intriguing, and one for my "to read" list.

One niggle from the review - the 1964 disaster wasn't caused by a substandard stadium, but by a riot as I understand it. This was definitely the case at other disasters (Ibrox, Bradford, Hillsborough, Bastia) though.

The improvement in British Stadia in the last 15 years was catalysed by the recommendations in the report produced after the Hillsborough disaster in 1989. By and large, new grounds and redevelopment of existing arounds has been funded in the UK by the clubs themselves, with help from a Government funded organisation known as the football trust. There are examples of local authorities owning grounds (eg Leeds) but this is more to bail out a team rather than having funded them in the first place.

The Contintental European experience may be somewhat different, however, as local authoriities have funded stadiums in many countries, particularly Germany. Clubs also get help if their stadia are to host World Cup or European Championship games. I'm interested to see how the authors address funding issues.

The other area which always interests me when seeing a US perspective on Football is views on the concept of promotion and relegation, which are alien to major US sport. I will be interested to see the authors' take on the benefits or drawbacks of such a system when compared with MLB's closed shop.
   3. Bob T Posted: November 21, 2005 at 11:20 PM (#1741847)
I got a copy of this book quite a while ago. Side benefit of working in a library. I found it interesting although the parts about European television revenues started to lose me a bit. Anyone who advocates baseball adopting any type of relegation should read the book. I think you would learn quickly that relegation is not any panacea for baseball.
   4. Fear & Whisky keeps Phil Coorey going Posted: November 21, 2005 at 11:48 PM (#1741895)
Thanks for looking at the book, Maury. It has been in a cart of mine of the recommendation of someone here now for a little while.

Can't wait to read it.

Maury, does the book cover the Kerry Packer led World Series revolution of cricket in the 1970's???
   5. Bob T Posted: November 22, 2005 at 12:28 AM (#1741945)
According to the index (to back up my recollection), the answer is no.
   6. Cooler Than You Posted: November 22, 2005 at 01:36 AM (#1741993)
Maury, does the book cover the Kerry Packer led World Series revolution of cricket in the 1970's???

I think we've identified the topic of Phil Coorey's first book. Or his second, if How To Score Chicks That Bang Like Dunny Doors counts.
   7. Fear & Whisky keeps Phil Coorey going Posted: November 22, 2005 at 01:45 AM (#1741996)
I think we've identified the topic of Phil Coorey's first book. Or his second, if How To Score Chicks That Bang Like Dunny Doors counts.


Is that you rlr?

There are some good books already about the topic, I would have nothing!

On baseball’s side of the ledger, Zimbalist traces the evolution of stick and ball games, most notably cricket, through its various permutations to the game we see today.


That paragraph distracted me, oops.
   8. Cooler Than You Posted: November 22, 2005 at 01:50 AM (#1741998)
Is that you rlr?

Is it that obvious?

There are some good books already about the topic, I would have nothing!

I suppose your first book will have to be about the wearing of traffic cones.

I think I might just look this book up as a Christmas gift, and I don't generally read sports books. It couldn't hurt to read up on how European football operates as a business. It's all a little unclear to me. It is the second greatest organized sport of them all, however.
   9. Fear & Whisky keeps Phil Coorey going Posted: November 22, 2005 at 02:04 AM (#1742009)
Very obvious it was you mate. Hope you are well.

You can get a taste of the book at Amazon.com. I am definately buying it after seeing a sneak preview of it now.
   10. Flynn Posted: November 22, 2005 at 02:29 AM (#1742041)
I will be interested to see the authors' take on the benefits or drawbacks of such a system when compared with MLB's closed shop.

One major drawback is that it forces teams to borrow to oblivion.
   11. Wally Frostbackman (Walewander) Posted: November 22, 2005 at 02:59 AM (#1742059)
For baseball fans, they will be treated to the first ever World Baseball Cup. For the rest of the world, it will be the FIFA World Cup in Frankfurt.

As evidenced by the posts here, for lots of us it's both. And Olympic Hockey! 2006 is going to be fun.

I think the rest of Germany will be interested to hear that Frankfurt gets the World Cup Finals all to itself. ;)
Seriously, thanks for an informative review of a book that I will read as
soon as my broke ass can check it out of the university library.
   12. rLr Has A Structured Settlement, Needs Cash Now Posted: November 22, 2005 at 03:03 AM (#1742062)
I think the rest of Germany will be interested to hear that Frankfurt gets the World Cup Finals all to itself. ;)

Especially since the opening match will be in Munich and the final will be in Berlin.
   13. Richard Posted: November 22, 2005 at 03:14 AM (#1742068)
One major drawback is that it forces teams to borrow to oblivion.

I'd agree with this, and agree with Bob that relegation is not a panacea for baseball.

The more money there is in a game, the worse promotion or relegation is for that game. This is evidenced by the number of broke teams in England's Championship (the level below the Premier League) who've spent big to stay up and failed, crippling them financially. All the money is at the top level. Things weren't as serious when wages were lower and TV money was minimal. Relegation was bad, but not a disaster. Now it can be. Those who run English football are in the process of noticing this problem, but I doubt anything will be done along the lines of, say, revenue sharing (which I'm against anyway).

I wouldn't bring it in to MLB (or any other US sport, for that matter). There is something to be said for a system where all teams are at the same level and anyone can (in theory) win it all. Too much of a culture shock to introduce, although it is true that the McClatchys of this World would be terrified by being relegated to AAA, which would be amusing.
   14. Maury Brown Posted: November 22, 2005 at 03:29 AM (#1742081)
One niggle from the review - the 1964 disaster wasn't caused by a substandard stadium, but by a riot as I understand it.

The riot was certainly the impetus, but the narrow exits and lack of them was why it moved into a such disastrous state.
   15. Bob T Posted: November 22, 2005 at 03:39 AM (#1742090)
Then there's always the odd case of American pro soccer which has teams where one person can own multiple teams. Yet it also has the European system where there is both a cup competition (the Lamar Hunt U.S. Open Cup) and a league competition (except it has playoffs).

But no matter how hard they try, the Rochester Rhinos aren't moving up to MLS.

I remember as a young lad how excited we were in L.A. when Maccabees S.C. won its fifth cup!

How about we start the Organized Baseball Cup. Have the A-level teams play single elimination games. We could get to a final between the Jacksonville Suns and Kansas City Royals for the Cup!
   16. Richard Posted: November 22, 2005 at 03:46 AM (#1742093)
Cup competitions are a lot of fun in Football. I love the FA Cup.

A 128 team baseball cup with single game elimination would never get off the ground, but would be a lot of fun.

The concept of the knock out competition adopted in the FA Cup, for what it's worth was inspired by similar competitions at English public schools. Of course, a league competition in Baseball preceded the English Football league by nearly 20 years, and I always wonder whether this was partly an inspiration to the founders of the Football League, although I've never read any evidence that it was.
   17. Richard Posted: November 22, 2005 at 03:47 AM (#1742094)
The riot was certainly the impetus, but the narrow exits and lack of them was why it moved into a such disastrous state.

I see. I'd never realised this.
   18. fra paolo Posted: November 22, 2005 at 05:06 AM (#1742152)
does the book cover the Kerry Packer led World Series revolution of cricket in the 1970's

No. It leaves cricket behind once baseball and soccer establish themselves in the 1870s.

you would learn quickly that relegation is not any panacea for baseball.

The problem in soccer nowadays is not relegation per se, but the distribution of TV income. A lot of teams, like Fiorentina, spend money on getting into the extremely profitable European Championship as well as on avoiding relegation. And the problem is only going to get worse in Europe as the European Commission seems determined to force TV companies to deal with individual clubs, which will give the rich teams even more. As this book shows, it is a lot healthier for leagues to negotiate and behalf of all clubs, in terms of distributing money.

A relegation system can be 'adjusted' to assist the haves. For example, in Argentina, I believe it's not the lowest teams in any one season, but the worst teams over the last three seasons. And in English rugby, at one time Rotherham (a highly unfashionable northern town) was due to be promoted and Harlequins (a rich and fashionable London club) was to be relegated. But Rotherham's playing ground was deemed not up to scratch, and Harlequins remained in the top division. Rotherham repeated its success the following year, but had made improvements to its park and was promoted. I can't remember if it was Harlequins that went down the second year, though.
   19. Fear & Whisky keeps Phil Coorey going Posted: November 22, 2005 at 05:17 AM (#1742157)
A lot of teams, like Fiorentina, spend money on getting into the extremely profitable European Championship as well as on avoiding relegation.


Same with Leeds, right?

I never knew about the Argentinian way of relegation, seems a lot fairer if you ask me.
   20. Richard Posted: November 22, 2005 at 05:20 AM (#1742158)
Fra Paolo - no, it was Bristol I think(who promptly went into Liquidation and had to re-form). My mother lives in Rotherham, so I followed that saga with some interest. The diescription of Rotherham as a highly unfashionable Northern town is charitable in the extreme!

Rotherham lost every game when they finally did go up, sadly. that was definitely a case of the establishment protecting its own. If the team to be relegated was Leeds or Sale, that would never have happened.

Fortunately, the spectre of "adjusted" relegation has yet to appear in England, although I suspect it will be a while before Man Utd and Spurs again grace the lower leagues as they did in the 1970's.

The Premier League and the EU have cut a deal which will involve the league as a whole selling rights in 5 or six packages, so we may see games return to terrestrial TV and it will break the Sky monopoly, which upsets Murdoch and pleases me. No single club agreements in England for the next few years at least, which is all to the good.
   21. Richard Posted: November 22, 2005 at 05:22 AM (#1742160)
Phil - yes, that is what happened to Leeds. You have to laugh...

And I am dead set against any system like Argentina's. Don't give poorly run teams a safety net. If they are bad enough to go down in a given year, let them do so.
   22. Fear & Whisky keeps Phil Coorey going Posted: November 22, 2005 at 05:38 AM (#1742166)

And I am dead set against any system like Argentina's. Don't give poorly run teams a safety net. If they are bad enough to go down in a given year, let them do so.


I guess you are right, but I harbour bad feelings for a team that was relegated in 2003 with 42 points...:)

Oh and this thread is making as determined as ever to read the book. Problem is , it will take a month to arrive here...

Fra - thanks for the heads up on the cricket in post #18
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