Thread: Fixing MLB
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Old Mon Oct 25, 2010, 01:19pm
TussAgee11 TussAgee11 is offline
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A common misconception or misunderstanding. Popular to contrary belief,

Organizations like the Pirates and other lower level lower market franchises make boat loads of cash. The make the majority of this money by keeping costs low (salaries) and having revenue high (localized TV deals). Performance of the team no longer matters since they do not rely on the gates to run the organization.

The TV deals are driven up and up and up by ESPN and the higher markets. Localized Fox Sports affiliates still are paying alot of money for the rights to cover even the lower level teams.

The Yankees / Red Sox / Mets have a business model that is just different than the lower level teams. Both methods make money. If you are a lower-market franchise, why risk spending more on performance when there is no payout for it other than increased ticket sales, which will not drive up overall revenue since you had to pay players in order to get that attendance.

So it becomes a popularity contest. Which teams have the most fans watching every game, which leads to higher TV contracts? Those are the teams that spend the most. Its the best situation the league could ask for, the fan base's favorite teams most likely will be around come October.

Parody in performance will only dilute the dollars, which the owners simply do not want. They like it the way it is, and so do the players. Its a business...
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