Baseball's Revenue Gap


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S. Hrg. 106-1045


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The United States Government Printing Office (GPO) was created in June 1860, and is an agency of the U.S. federal government based in Washington D.C. The office prints documents produced by and for the federal government, including Congress, the Supreme Court, the Executive Office of the President and other executive departments, and independent agencies. A hearing is a meeting of the Senate, House, joint or certain Government committee that is open to the public so that they can listen in on the opinions of the legislation. Hearings can also be held to explore certain topics or a current issue. It typically takes between two months up to two years to be published. This is one of those hearings.




Baseball's Revenue Gap


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Baseball's Revenue Gap


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Baseball's revenue gap : pennant for sale? : hearing before the Subcommittee on Antitrust, Business Rights, and Competition of the Committee on the Judiciary, United States Senate, One Hundred Sixth Congress, second session, November 21, 2000.




Baseball's Revenue Gap


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Hearing on the growing revenue disparity among teams in Major League Baseball (MLB), which is creating a sport of haves and have-nots, a sport where teams with the biggest bucks can buy the best players and control the game. Unless baseball addresses these increasing income inequities, America's pastime will simply no longer exist. Witnesses: Bob Costas, Sportscaster, NBC; Rodney Fort, Prof. of Econ., College of Bus. and Econ., Wash. State Univ.; George Mitchell, Former Senate Majority Leader, and Independent Member, Commissioner's Blue Ribbon Panel on Baseball Economics (CBRPBE); Allan H. "Bud" Selig, Comm. of MLB; Frank Stadulis, Pres. and CEO, United Sports Fans of Amer.; and George Will, Columnist, Wash. Post, and Member, CBRPBE.




Baseball's Revenue Gap


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Diamond Dollars


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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




Diamonds Are Forever


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As every American knows, our nation's favorite pastime is also big business. The last fifteen years have been exceptionally good to the business of baseball-with the growth in fan attendance, the spread of cable television, the burgeoning interest in cards and other baseball memorabilia, the historical appreciation of franchise values, the emergence of a powerful players' union, and average salaries that are almost twenty times their pre-1976 levels. Yet at this time of prosperity, major economic issues trouble the sport: the threat of franchise relocation, the continual flash points in collective bargaining, the growing commercialization of the game, the club owners' collusive response to free agency, lingering concerns of race discrimination, and the arguably tenuous link between player pay and performance. This fascinating book examines these and other major issues and assesses their probable impact on the business of baseball. Contributors begin by examining the effect of the reserve clause on competitive league balance. They then investigate whether prior experience with the salary arbitration process affects player demands in subsequent settlements and compare salary differences between ineligible and arbitration-eligible players. They consider the role of the baseball fan as contributor to team winning, as season ticket purchase, and as card-collecting hobbyist. Diamonds Are Forever also looks at the link between player pay and performance. The authors question whether such high salaries are actually earned by players or are instead awarded by owners eager to have "the winning team." They also discuss the growth in unequal distribution of salaries among players. In the last section, the authors look at racial discrimination in baseball and the influence of a team's racial composition on salaries. From Babe Ruth to Nolan Ryan, Doubleday to Skydome, baseball cards to Homer Hankies, the nation has been enthralled for decades with the business of baseball. Although the authors look to the future and consider changes that might occur in this profitable pastime, they assure that diamonds are forever.




Increasing Baseball Revenue from the Female Market


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Claire Monroe was challenged to increase a minor league baseball team's revenue and was in charge of developing a marketing plan to target female baseball fans. This would be a new target market for the team. The increasing female fan base can create revenue for baseball franchises through ticket, merchandise, and concession sales, as well as connecting with sponsors who specifically target female customers. Although there are many gender similarities in regards to fan avidity, there are important differences between the sexes in terms of motivation, media, and merchandise needs. Claire must research the target audience, analyze marketing research data, and make recommendations to increase female attendance to have those women spend more money on baseball-related items.




Stealing Lives


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While some Latin American superstars have overcome discrimination to strike gold in baseball's big leagues, thousands more Latin American players never make it to "The Show." Stealing Lives focuses on the plight of one Venezuelan teenager and documents abuses that take place against Latin children and young men as baseball becomes a global business. The authors reveal that in their efforts to secure cheap labor, Major League teams often violate the basic human rights of children. As a young boy growing up in Venezuela, Alexis Quiroz dreamed of playing in the Major Leagues. Alexis's dreams were like those of thousands of other boys in the Dominican Republic and Venezuela, and Major League teams encouraged such dreams by recruiting Latin children as young as 10 and 11 years old. Determined to become a big league player, Alexis finished high school early and dedicated himself to landing a contract with a Major League team. Alexis signed with the Chicago Cubs in 1995 at age 17 and then began a harrowing ordeal of exploitation, mistreatment, and disrespect at the hands of the Chicago Cubs, including playing for the Cubs' Dominican Summer League team in appalling living conditions. Alexis's baseball career came to an abrupt end by an injury for which the Cubs provided no adequate medical treatment. The story continues, however, with Alexis's pursuit of justice in the United States to ensure that other Venezuelan and Dominican boys do not encounter similar experiences. What happened to Alexis is not an isolated case-Major League teams routinely deny Latin children and young men the basic protections that their U.S. counterparts take for granted. This exploitation violates international legal standards on labor standards and the human rights of children. Stealing Lives concludes by analyzing various reforms to redress the inequities big league baseball creates in its globalization.