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Baseball Primer Newsblog — The Best News Links from the Baseball Newsstand Tuesday, July 19, 2022MLB expansion? MLBPA chief Tony Clark hopeful league can get to ‘a world of 32 teams’
RoyalsRetro (AG#1F)
Posted: July 19, 2022 at 04:20 PM | 45 comment(s)
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1. The Yankee Clapper Posted: July 19, 2022 at 04:56 PM (#6087413)With the exception of the Cards (good) and the Fla franchises (bad), franchise value and market size track pretty closely. None of the proposed expansion locations is particularly large except Montreal at 4.3 M. Maybe Nashville, Charlotte, or LV will grow to be that large; Charlotte has a lot of corporate HQ which might help; LV has its attractions and tourists which might help. But is there any good reason to think any of these franchises will be more success than Toronto, Seattle, Denver?
So why would somebody spend $2B to buy an asset worth less than $2B? And if they did, why would they do anything except be the next Pirates and cash their common and shared revenue checks while running a payroll of $40 M? I know billionaires have egos but it's not like Steve Cohen overpaid. In fact, Cohen paid $2.45B for the Mets ... why would anybody pay $2B for the Nashville Dollies?
Nashville, Portland, and I believe Montreal have ownership groups. Now a stadium, that's a different matter.
Baltimore, Pittsburgh, Cincinnati, Cleveland, Kansas City, Tampa Bay, Miami, and Oakland.
I hate to say it, but Tony Clark and the MLBPA have been highly resistant to improving things like pace-of-play. They also haven't been helpful in supporting the minor leagues. Seems like they should be supportive of growing the game, but MLBPA has consistently taken the short-term view, possibly even worse than the owners.
I don’t get it either. They would probably exclude the new teams from the shared television revenue for several years as well.
This is just unmitigated greed on the part of the owners, yet they try to cast the players as the greedy ones.
MLB is too shortsighted to do expansion right.
They're a smallish market and hockey's definitely the number one sport in the market, but there was nothing unusual about their revenue or attendance.
I mean the spiral started in 1995 and that year they out-drew the Mets, Padres, Giants and Pirates. Next year they out-drew the Pirates and Giants. In 1997 the only team with worse attendance was the Phillies. Then it finally collapsed -- when they were clearly just fielding a team to collect on the revenue sharing. (And had stopped doing things like promoting the team in Ottawa -- which provided a fair number of the fans)
Montreal won't be a wonderful market but a responsibly run team will do OK.
I don't think Stade Olympique is capable of being an MLB stadium anymore without substantive renovations. It has been a few years since I was there. But, it looked shady for tractor pulls and stuff when I was.
And you're done.
My guess is that the preference would be for four rounds of postseason play, due to eight four-team divisions and two wildcards (and two division-winner byes), much like the NFL had prior to the virus.
Oh, and going down this road almost certainly results in radical realignment.
And you're done.
Brooklyn makes zero sense . There's no chance of even a partially publicly funded stadium, and it's got to be about the most expensive place in the country to build. You think someone's going to spend $2B on a team, and another $2B on a stadium, in order to be largely ignored by NY baseball fans?
My guess is that the preference would be for four rounds of postseason play, due to eight four-team divisions and two wildcards (and two division-winner byes), much like the NFL had prior to the virus.
Oh, and going down this road almost certainly results in radical realignment.
Four eight-team divisions, eight wildcards. Four division winners get byes in the three-game fist round. Five-gave second round, Seven-game LCSs and WS. Easy peasy.
At that point, the regular season is no longer meaningful in just about any sense.
Just call it the Walmart World Series Cup, and start the elimination rounds from the beginning of the season. Then give a much bigger prestigious Target Trophy to the team who wins the most games in the regular season. Done and done. The European Footballization of the MLB. MLB keeps trying to be like basketball and American football, but European football makes much more sense as something to model. You could even run two different elimination competitions depending on standings from the previous season concurrently to the regular season between the top half and bottom half of teams.
It's the same number of playoff teams we have now, with two extra teams in the league. If the season makes no sense then, we're already there.
Having said that, I'm not convinced Montréal is really a viable market any more. The costs of entry are too high for what it can generate in revenue.
* * * *
Now that the DH is universal, I don't see the point of the leagues as they are. Before embarking on expansion, I would prefer to see a realignment, more along NHL lines, where it is basically geographical but not entirely so. (Eg, the Atlantic division, which includes such well-known Atlantic ports as Detroit and Toronto, plus Ottawa. Thanks, St Lawrence Seaway!)
Hell, I've got $750 in walkin' round cash to invest in a new Montreal franchise. Deal me in!
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Víve le Parc Jarry!
Best little ballpark I ever visited. In the game I was at, Willie Stargell hit a moon shot home run that landed in a public swimming pool and scattered the swimmers.
It'll be great.
Folks often propose this as if it's something easy. That's a 5% reduction in the number of games. Do you think owners want a 5% reduction in local revenue?** Do you think they want to give 5% back to the RSNs? Do you think the players want a 5% reduction in salaries?
Now if the loss of regular season games results in an increase in postseason games then the owners (at least the small market ones) will be in favor; the national broadcasters will be in favor. The local broadcasters are still not happy and the players are still not happy. If the extra playoff revenue is more than enough, you can give the local broadcasters their 5% refund. You could handle the current players by grandfathering all existing contracts (not sure you'd have a choice) but they'll still realize that all future contracts will be 5% lower. So now you've got to let the players in on the playoff revenue in a much bigger way, something the owners don't want.
"You now what we should do? Offer less of our product!" is not a commonly successful business strategy. Granted if only 3 diners show up on Monday nights, you're probably losing money on Monday nights so you're better off closed ... not a good sign for baseball.
** Obviously this would be less than 5% as you drop mid-week games, travel day afternoon games, etc. But if you're doing it to squeeze in an extra week of playoffs where the last week of the season would be then you're playing the same schdule for those 154 games.
Sure they do. Those pesky players have to be paid during the regular season while they work for (essentially) free in the playoffs which are a huge windfall for ownership.
Probably this is true in terms of the accounting.
But MLB owners may well be right that out of 4-5 cities they can get the number closer to $2 billion. You've got owners' egos, scarcity, perception (one day may turn out to be false) that value always rises. It's also likely some of the cities will have people involved who see their public face of bringing baseball to the city will increase their civic stature/political viability. Surely some of these people are valuing a team in "their" city higher than they would ownership of a team in another city.
So you can see what MLB is thinking but still "pay $2B for an asset worth $1B that might well be worth $2.5 B a decade from now" is still not a great deal given what investing the $2B elsewhere would get you after 10 years.
With those entry costs, what city is a viable market any more? I’d guess that more than have the cities with ML franchises wouldn’t be viable if they did not already have a team.
The fact is, the most viable locations for expansion franchises would be a third team in NY (maybe not Brooklyn), and a third team in the LA area. Due to giving teams territory rights, this will never happen, but that would be the logical places to put new teams: where the people are.
All the most interested baseball fans, and most of the casual ones are already Yankee or Mets fans. Why are they going to switch? If a new team comes to an unoccupied market, having a home town think is a new thing, and attracts interest. In NY, why would people want to follow the new team? Maybe over 20 years you grow a fanbase, but that's not going to support the team financially today.
Want to play in Boise? Cool. Here's 150 million a year. Have fun. So a team in NYC can certainly pay the bills and stick their hands out for a tax payer funded home.
But 8 games is nothing. If they are cutting the schedule they should start with 144 games and then look into cutting the season down to like 80 games. 4 games a week from May through September and then the playoffs in September. If they are expanding the playoffs then I'd throw in some 5 game weeks in the middle of the season.
last year, the WS winning braves each got ~$400,000 for 16 games. So about $4 mil for a full season by comparison. A lot of players make less than $4 mil for the season, so only for the highest paid players is it a relative pittance. but of course, that's the top pay. The Dodgers each got $113,000 for 12 games.
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