Is Major League Baseball revenue sharing going away?
Forbes finding evidence that Major League Baseball no longer needs revenue sharing.
Major League Baseball revenue sharing faces eventual elimination, and now there are 788.3 million new reasons why. Forbes has reported that Fox, ESPN and TBS combined broadcast deals will bring more than three quarters of a billion dollars to MLB.
This news comes despite New York Times and Fox reports last summer that chronicled the demise of Major League Baseball ratings. There is only one logical conclusion-the elimination of revenue sharing and a return to the survival of the fittest.
Even though Major League Baseball is certainly financially sound, as the world changes, the problem of declining ratings only picks up speed as it rolls down hill. In today’s society, the suggestion is that baseball just isn’t as cool as football or basketball. There are too many games. When the playoffs roll around, football tops baseball because every game is an elimination game.
But the real problem was revealed in the second half of Jim Gray’s interview on Fox last year. As baseball increased from 16 to 30 teams, many small markets got their chance. The problem is, big market fans don’t care about small market teams.
It’s time to admit that the root of the problem came with the revenue sharing plan. For all of its good intentions, the plan is destructive and just plain wrong. Here is why. When you buy a ticket to a New York Yankees game ( or any other big market team), you don’t do it to support any small market team.
It doesn’t matter what it says on the back of the ticket in small print, you’re a Yankees fan. You probably just don’t care whether the Rays make the playoffs. You spend your money to support the Yankees. Taking your money and giving it to other teams is nothing short of highway robbery.
Okay, the revenue sharing primarily has to do with advertising revenue. But it’s all related. A fan sees a commercial about a team, or about a business that supports the team, and it encourages him to see a game or go to that business and spend his money.
And according to Business Journal, The Yankees are not the only team that is benefiting from a lucrative television deal. The Dodgers signed a television deal that was worth between seven and eight billion dollars. The Rangers, Angels Mariners, Padres and Phillies also reportedly inked multi-billion dollar television agreements. They earned these through strong fan support. [related category]
Any way you look at it, the conclusion is clear. A small market city that has a full stadium when the team is winning, but a near empty stadium when it is losing, does not deserve to have a team. Why should it be subsidized?
Imagine if McDonald’s was forced to give money to Burger King or Wendy’s (or conversely) just because McDonald´s has more customers. Taking it a step farther, it’s just not fair that a Jaguar is more prestigious and expensive than a Kia, so let’s give Kia some of Jaguar’s money. That’s the logic, or lunacy, behind revenue sharing.
The fallacy is the claim that MLB is one big business with “franchises.” They are not really franchises, they are separate businesses. If you don’t believe that, ask any Yankees, Dodgers or Red Sox fan which they would rather go see — their own team or some small market team.
Consider the Marlins. Every few years they throw out a pile of money to put together a contender. After their run, they dismantle the team again. Then they cry that they can´t compete. They beg the community for a new stadium. They point to the empty stands and complain that they need help.
But somehow, they find a way to sign Giancarlo Stanton to an enormous deal. They bring in some more players to surround Stanton. Watch, they will make another run and dismantle again. Then they´ll be crying the small market blues once more. Let them do it all with their own money, instead of freeloading on the backs of the big market teams.
The real beauty of the Royals run in 2014 was that, even though they are not in one of the biggest markets, their fans stayed true and stuck with their team all of these years. They didn´t just jump on the bandwagon when the organization finally got it turned around. That is a team and a fan base that deserves to win.
And the news from Forbes shows that teams can survive on their own. Give the Yankees and the big market teams back their money, they earned it and deserve it.