Fansided

About 1/3 of US MLB markets contain economically-struggling cities

By Derek Helling

Jun 28, 2015; Detroit, MI, USA; General view as Detroit Tigers designated hitter Victor Martinez (41) bats in the first inning against the Chicago White Sox at Comerica Park. Mandatory Credit: Rick Osentoski-USA TODAY Sports
Jun 28, 2015; Detroit, MI, USA; General view as Detroit Tigers designated hitter Victor Martinez (41) bats in the first inning against the Chicago White Sox at Comerica Park. Mandatory Credit: Rick Osentoski-USA TODAY Sports /
facebooktwitterreddit

There are 29 MLB franchises in the United States of America, and nine of those teams play in markets with cities which rank among the worst in economic factors like poverty.

Mike Sauter of 24/7 Wall Street recently released the publication’s ranking of the 50 worst US cities to live in, which includes cities in nine US MLB markets. The list was compiled using Thinkstock data and a clear methodology.

"To determine America’s worst cities to live in, 24/7 Wall St. reviewed data on the 551 U.S. cities with a population of 65,000 or more as measured by the U.S. Census Bureau. Based on a range of variables, including crime rates, employment growth, access to restaurants and attractions, educational attainment, and housing affordability, 24/7 Wall St. identified America’s 50 worst cities to live in."

The nine US MLB markets whose cities were included in the list are:

  • Kansas City, Kansas – no. 49 (Kauffman Stadium, the home of the Kansas City Royals, is located in Kansas City, Missouri. However, the proximity of Kansas City, Kansas to Kansas City, Missouri, is such that visitors to the area often cross the state line without even realizing it).
  • Philadelphia, Pennsylvania – no. 42
  • Atlanta, Georgia – no. 37
  • Cincinnati, Ohio – no. 25
  • Miami Beach, Florida – no. 17 (Marlins Park is in Miami, but the center of Miami Beach is only 7.5 miles from the stadium.)
  • Baltimore, Maryland – no. 14
  • Milwaukee, Wisconsin – no. 6
  • St. Louis, Missouri – no. 4
  • Detroit, Michigan – no. 1

What does this mean for MLB franchises, which are privately owned businesses? That depends on point of view and which pieces of information are considered.

The first takeaway for MLB in this data is that most of its US teams aren’t in markets whose cities appear on this list. That coincides with data from other sources, like Forbes’ latest franchise valuations, which show a growth in the bottom line for the league.

What’s interesting are the correlations between those Forbes valuations and the 24/7 Wall Street list. The St. Louis Cardinals are the highest-ranking team from this conversation on Forbes’ list, coming in at seventh. Data from 24/7 Wall Street’s assessment of that metro suggests that fans who are coming to Cardinals games don’t live in St. Louis, however.

"The city’s population is less than half of what it was during its 1950 peak of 860,000 people, and it continues to decline today. While the U.S. population grew 11.5% over the last 10 years, the number of residents in St. Louis fell 5.4%."

The Philadelphia Phillies are also in Forbes’ top 10, despite what 24/7 Wall Street points to as widespread poverty.

"Philadelphia’s status as one of the worst cities to live in is underscored by the city’s high poverty rate. More than one in four city residents live below the poverty line, well above the 14.7% U.S. poverty rate."

The reason why population decline and poverty haven’t destroyed MLB in these markets is because MLB’s business strategy has insulated these franchises from these factors to a large extent. As Mike Ozanian correctly points out:

"Values were driven higher by new local television deals that are increasing at roughly a two-fold rate, surging profitability, and the escalating value of Major League Baseball Advanced Media, the Internet and technology arm of MLB."

MLB has built its product to thrive in an increasingly mobile world. Additionally, some of the revenue produced by MLBAM has very little to do with baseball, like Bamtech’s deal with eSports giant Riot.

What fans can take away from all of this information is that MLB and its member franchises can be profitable even when surrounded by economic destitution. That doesn’t mean that everything is coming up Pete Roses, however.

Fans should also see this as further evidence that the sales pitch for tax dollars devoted to professional sports teams is nothing more than billionaires looking for corporate welfare. Seven of the other 41 cities on 24/7 Wall Street’s list which don’t have MLB franchises do feature either/or an NBA, NFL or NHL franchise. That brings the total of greater metropolitan areas on the list which have at least one franchise in the Big Four professional sports leagues to 16, or 32 percent.

Next: Top Starting Pitcher Of All-Time From Every MLB Team

The next time that an executive for a franchise in MLB, or any other professional sports league, argues that a city, county or state putting tax dollars behind a new or renovated stadium is an investment in the economic development of the locale, remember this analysis. It’s definitely a boom for the owners of these franchises, but the evidence suggests that for the larger population, it makes almost no difference.

Home/MLB