First of all, my apologies for sending this newsletter later than usual. I was waiting to see what would happen in today’s trading session. For the first time, both sides have made notable progress. According to several reports, they are about to agree on the draft order/lotteryalthough it is not yet finalized.
MLB made a proposal on the draft, the players countered, and from there they went back and forth, by Athleticismde Evan Drellich. Also of note, Rob Manfred showed up! He hadn’t been to the bargaining sessions for months, Chelsea Jane de Le Washington Post reports, but he was here today. He met one-on-one with MLB union chief Tony Clark, although it’s unclear what they discussed.
The overall gap between the two sides remains wide, but at least it looks like they’re close to something. At this point, that should be considered a good thing. They meet tomorrow.
Now let’s move on to the newsletter…
Just over two weeks ago, Rob Manfred held a press conference to spread misinformation about the MLB lockdown. Among his nonsense, he said throughout the game’s history, he was “the only person who reached a labor agreement without a dispute…” two months after the lockout of his own creation.
Emma Baccellieri wrote in her brilliant translation of Manfred’s presser that the commissioner’s comments were “madly, eye-rolling inducing in a dishonest manner”. Perhaps nothing Manfred said was more sincere than his assertion that owning a baseball team was a bad investment.
“We actually hired an investment banker, a very good one, actually, to look into this,” Manfred said. “If you look at the purchase price of franchises, the money invested during the period of ownership, and then the sale price, historically the return on those investments is less than what you would get on the stock market, than what you I would expect to go public, with a lot more risk.
The factuality of Manfred’s statement cannot be definitively proven one way or the other because we don’t know what the teams’ stock market performance would be. As Emma wrote, “Team financial books are generally closed.”
However, the sentiment behind Manfred’s message was clear: baseball teams aren’t as profitable as one might think. Caring owners do not this a lot of money from their franchises, but they still own them because they care about you, the fans.
So this morning was rich—pun very intentional—when Sports Business’ Eric Fisher released the 2021 Atlanta Braves results.
The Braves group consists of both the team and Battery Atlanta, the development right next to Truist Park, which includes restaurants, shops, and a music venue. The Braves made $526 million in baseball revenue and $42 million in battery revenue. In the pandemic-shortened 2020 season, the team’s baseball revenue was just $93 million and battery revenue was $9 million. Braves baseball profit of $104 million in 21 is up from a loss of $49 million in 20; factor in the battery, and the Braves made $111 million in profit last season after losing $53 million in 2020.
Two things to note:
- The Braves are owned by Liberty Media, which, because it’s a publicly traded company, is required to report its earnings. The Blue Jays are owned by Rogers Communications, also a public company, but Canada does not require Rogers to report financial information specific to the Blue Jays.
- Atlanta won the World Series, and putting a good team on the field, especially a true title contender, will usually be more profitable than fielding a rebuilding roster.
But while we don’t know the finances of the other 29 franchises, and while we recognize that the World Series-winning Braves were almost certainly more profitable than many other teams, their revenues are still significant as they reveal that owning baseball teams can to be a lucrative business venture.
Revenues also suggest that competitive baseball teams are more profitable than those that don’t stand a chance. Then again, given all the revenue small-market teams receive through revenue sharing, baseball franchises could be quite profitable for owners, even if their teams stink and regardless of market size.
Want more proof? As Tom Verducci writes in his This Morning column (more on that in the next section), “David Glass bought the Royals for $96 million in 2000. He sold them 19 years later for $1 billion. dollars. The Royals. The team that plays in the third smallest MLB market.
Consider the context of Manfred’s claim: The press conference was held in the midst of labor negotiations that were clearly not going the way MLB had hoped or expected. The implication is that the owners cannot afford to give players the amount of money offered by the syndicate.
So why would he say baseball teams are bad investments? Why would he say something that was previously misleading and is now, at least in some cases, blatantly untrue?
The owners realize that their best chance of breaking union solidarity is to convince avid baseball fans that the league is doing everything it can to start the season on time, but it can’t because avid players are unreasonable. Manfred, as commissioner, is in charge of persuading.
However, it’s clear now, if it wasn’t already, that the owners can afford to give players more money and they’re not doing everything they can to start the season on time.
Clearly it is not the players, but the greedy owners who are being unreasonable.
Do you have questions for our team? Send a note to [email protected].
1. OPENING
“The 1990 lockout, like the two lockouts that preceded it, was settled without missing a regular season game. This one, the first since then, is more concerning because there are more disagreement issues and because baseball has lost ground in an ever-changing and ever-changing entertainment landscape.
That’s Tom Verducci in his column about this weekend’s negotiations and the most pressing issues standing in the way of a deal. You can read his full article below:
It’s MLB’s most important weekend in two decades by Tom Verducci
2. ICYMI
Baseball’s Biggest Threat Isn’t Lockout by Tom Verducci
Sport’s place in popular culture and the entertainment landscape is in jeopardy not because of its economic structure, but because of the way it is played.
Andrew Miller explains key union issues in MLB lockdown by Emma Baccellieri
The veteran reliever is one of eight players on the union’s executive subcommittee. He spoke with SI about the CBA negotiations.
‘Sex and the City’ and a baseball mystery by Emma Baccellieri
The reboot of the iconic show sent me down the perfect rabbit hole during the MLB lockdown. Here is what I found.
Complete guide to the college baseball season by Claire Kuwana
Looking to get your baseball fix during MLB lockdown? Here’s a quick guide to the 2022 NCAA season.
Also, in today’s SI:AM newsletter, I spoke with Josh Rosenblat about why opening day is likely to be delayed. You can find our conversation here.
3. NOTES by Tom Verducci
Strategy is always part of the negotiations. A recall came this week during failed negotiations between owners and players over an expanded post-season.
Players haven’t signed postseason to 14 teams, even though that means more money for them and more players with a chance to play in the World Series. They know the owners have already sold off some TV inventory for an expanded postseason for around $100 million. It’s a chip with value.
This week, the owners concluded not only that players did not see Monday as a firm deadline to preserve a March 31 opening day, but also that players could gain approval for an expanded post-season. as part of a final settlement, which could include a dispute over lost wages if the games are lost. The owners have therefore doubled down on the deadline and their position that games and payment cannot be recovered if both parties miss the deadline.
In doing so, the owners attempted to inject needed urgency into the slow talks. They also tightened their position. As commissioner Rob Manfred said, losing regular season games would be disastrous for the sport. No matter how firm the deadline, both parties are there.
4. INFO! by Matt Martell
Before we get to this week’s question, here’s the answer to the one I asked last Friday.
Question from last week: After Zimmerman’s retirement, there are three active players who have spent their entire careers of at least 15 seasons with one team. Who are they?
To respond: Yadier Molina (18), Adam Wainwright (17), Joey Votto (15)
This week’s question: Who are the seven active pitchers with at least 2,000 career strikeouts?
5. The Closer de Emma Baccellieri
At a time when baseball headlines can seem universally bleak, remember that “baseball” isn’t just about Major League Baseball. College baseball (and softball!) had extremely fun beginnings. NPB in Japan is in its spring training version and will start the regular season in a few weeks. It’s a frustrating point in MLB, yes. But remember baseball is a much bigger idea than that.
That’s all for us today. We’ll be back in your inbox next Friday. In the meantime, share this newsletter with your friends and family, and tell them to sign up at SI.com/newsletters. If you have any questions or comments, email us at [email protected].
