20mg lilly cialis walmart buy viagra 1000 mg doxycycline lyme cipro 500mg price weaning prednisone 10mg zovirax to buy clomid buying online 40 mg lasix potassium xenical buy now taking 400 mg zoloft cialis 20mg korea lexapro 10mg high buy cialis italy buy cytotec manila buy 800mg cialis doxycycline 100mg jerawat cialis 5mg double buy propranolol 10 mg generic augmentin sizes cialis 5mg minutes doxycycline teva 100 mg lisinopril 10 mghctz blue cialis via mailorder buy nolvadex aus levitra 20mg nedir diflucan 150 mg directions cialis prospect 5 mg augmentin 500 mg filmtabletta bayer 20 mg levitra diflucan buy pharmacy lexapro online medication celebrex 200 mg generic cheap doxycycline tablets generic 5mg lexapro cialis 20mg berichte clomid 100 mg bijwerkingen propecia 0.25 mg pro cialis 20 mg augmentin 1000 mg 10 lisinopril electrolyte disorders 200 mg viagra metformin actavis 500 mg glucophage cheap generic lexapro markings strattera 80 mg price cialis online au viagra orders online levitra 10 mgs preis cialis 5mg mejor cialis generico buy doxycycline nairobi buy original clomid online shop kamagra tra 150 mg viagra cialis buy uk is prednisone generic celebrex 200mg youtube generico viagra cialis metformin sr 500 mg buy viagra chennai order cytotec online cialis 5mg ndc dosage phenergan 25mg 120 mg viagra online viagra cheap northwest viagra 40mg 1.25 mg synthroid nexium 20 mg bijwerkingen hydrochlorothiazide triamterene generic viagra online 2 days 800mg of viagra mejor viagra generica generic levitra used buy cialis ghana price generic viagra buy levitra 100mg bijsluiter lasix 40 mg montreal viagra buy clomid 100mg pct lisinopril 12.5 mg order fake levitra 20mg propranolol hydrochloride 40 mg cialis generic form lisinopril generic drug order viagra 25 mg cheap 5mg propecia cialis 5 mg online comprimidos cialis 20mg tablets cialis 20mg kamagra 100mg ervaringen australia generic viagra bijsluiter viagra 50mg 100mg zoloft erowid lexapro gone generic cialis generic comparison 5mg lexapro order celebrex cialis 20 mg confezioni sildenafil generic viagra lexapro 10 mg tabletki 20 mg levitra prices levitra schmelztablette 10 mg lexapro 10 mg 20 mg buy nolvadex proviron acheter viagra online viagra sordera medicaments cialis 5mg viagra 100mg online generic zoloft 100 mg misoprostol cytotec buy generic strattera .80 mg prix kamagra 100mg bactrim thyroid disorders mexican generic viagra is hydrochlorothiazide generic viagra buy spain lexapro 15 mg reviews levitra 20mg vidal lexapro review 5mg buy cialis in strattera 100 mg generic clomid buy forum xenical orlistat 60 mg propecia finasteride 5 mg levitra purchase online lexapro 2.5mg anxiety lisinopril 5 mg nedir prednisone 40 mg colitis cialis 5mg gener 10mg cialis taking 2 zithromax trockensaft 1200 mg buy dapoxetine cialis erythromycin online pharmacy augmentin amoxicilina 500mg viagra 800 mg pills kamagra cheap online viagra buy cheapest mail order levitra cheap lexapro 20 mg generic name lisinopril zovirax online shopping lexapro generic march cheap viagra jellies levitra 10 mg lutschtabletten image metformin 500 mg cheap soft viagra generic valtrex canada xenical 120 mg 84 caps doxycycline 50mg capsules hydrochlorothiazide 12.5 mg dosage lisinopril 20 mg od generic for zovirax valtrex 1000 mg fiyati 5mg levitra online reliable generic cialis Sale Levitra 10 mg diflucan 600 mg online butik viagra metformin tab 500 mg 5 mg cialis india doxycycline 500mg buying viagra 50mg prices nolvadex tabletas 10 mg clomid malaysia online doxycycline hyclate 400 mg doxycycline buy vietnam generic levitra mexico generic xenical online clomid 100 mg twins allnightbuy viagra online celebrex 200mg celecoxib online diflucan viagra 100mg men cialis cipla generic buy lexapro cipralex viagra black generic cialis sicuro online citalopram 40mg indicacoes 7.5 mg lexapro cialis 5 mg buy diflucan generic cialis notice20mg 100mg viagra uk lisinopril cheap augmentin price 500mg cialis reviews 5 mg lisinopril 40 mg daily viagra tablet online cialis 20mg cc cheap generic xenical online cialis brand cialis online discoun phenergan order strattera 100 mg image order viagra london order Cialis 10 pills buy legit nolvadex synthroid prescription online generic viagra 40 tabs nexium 20 mg capsulas buy zoloft cost thuoc prednisone 5mg cialis online greece nexium sobres 10 mgs viagra online bulgaria cialis generica 40mg generic viagra black health online cialis doxycycline generic order zoloft online metformin ranbaxy 850 mg doxycycline 50mg eye levitra dosage 40 mg buy strattera singapore buy real clomid amoxil bd400mg cura cialis 5 mg generic lexapro india propecia brand cheap kosten levitra 20mg diuretico lasix 40 mg 1000 mg zithromax malaysia bula zovirax 50mg hydrochlorothiazide 12.5 mg qualitest prednisone 10mg allergy 100mg doxycycline hyc cytotec 200 mg tablet metformin hcl 1000mg cheapest cialis review diflucan generico prezzo cialis 10 mg bugiardino lasix 250 mg fiale cialis professional 40mg prednisone 15mg 5ml diflucan buy australia viagra 200mg online starting zoloft 25mg lexapro generic walgreens buy kamagra gold viagra soft generico prednisone 5mg uses viagra precription online doxycycline 200 mg lyme korean generic viagra order bactrim metformin 1000 mg overdose generic vs cialis cialis 20 mg costi buy lisinopril 20 generic lexapro mylan nexium 40 mg tabletas cipro 500mg prostatitis prednisone 10 mg tablet laboratorio nexium 20 mg celebrex 90 mg nexium 20 mg generico lasix 40mg emagrece viagra online rating viagra cheap sale 5mg prednisone safe xenical buy pills prednisone 20mg sciatica kamagra buying buy cialis paypal buy diflucan usa buy diflucan pill montreal viagra 100mg lisinopril 12.5mg clomid generic vs online viagra warning best buy viagra order levitra generic zoloft 100mg pregnancy viagra 50mg verses cialis 2.5 mg buy lexapro 70mg phenergan generic name xenical uk online viagra 25 ou 50 mg lasix retard 60 mg cialis 20 mg murah celebrex 100mg price harga viagra 25mg glucophage 1000 mg overdose lisinopril 20 mg preco levitra packungsbeilage online order cialis online lisinopril 20 mg online wellbutrin 150 xl generic zoloft 15 mg doxycycline 100mg paludisme synthroid generic abbott cialis online legal erythromycin 250mg bd levitra 10 mg.ca erythromycin 200 mg cialis generico fiable prednisone order online buy levitra stores cialis 20 mg venda blueberry 100 viagra buy cytotec de 200mg clomid 100mg bula official viagra online generic zoloft appearance buy doxycycline hyclate buy 30 mg prednisone prednisone organon 5mg lisinopril 20 mg alcohol nexium o generico levitra 10 mg tabletta cipro 125 mg cialis 20 mg einnehmen cialis 60 mg cheap phenergan 25mg supp nexium drug generic cialis buy france lexapro 5 mg breastfeeding order cipro 500 mg zovirax 30 mg viagra sildenafil buy kamagra guarenteed cheapest clomid nome generico dapoxetine online australia cheapest uk cialis philippines buy propecia farmacias online propecia orlistat xenical online 10 mg lasix bodybuilding buy viagra internet order site viagra preisvergleich cialis 20 mg xenical generico portugal lisinopril 2.5 mg price viagra 25mg filmtabletten buy xenical uk wellbutrin 225 mg lasix dose 160 mg prednisone 50 mg information propecia 1 mg online cheap cialis review generic brand valtrex obat clomid 50mg nexium 20 mg fiyati generic levitra 2.5 valtrex dosage 500 mg order natural viagra kamagra 100 mg gold cialis 100mg cena generic zithromax effective cialis 5 mg statins zoloft 100mg tabs buy cheap clomid cialis 5mg testosterone erfahrung kamagra 100mg lisinopril 20mg tablet nexium 40 mg reviews glucophage 850 mg metformin genericos de celebrex order viagra america hydrochlorothiazide 25 mg usos zovirax 200mg tablet viagra generico brevetto prednisone withdrawal 5mg prednisone 5 mg chews nexium mg generic xenical uk branded cialis online cialis 5mg mexico walmart 5mg cialis fungsi glucophage 500 mg 10mg cialis tablets 20 mg lexapro withdrawal cialis 200 mg overnight generic cialis bogus posologie valtrex 500 mg buy propecia walgreens prednisone mylan 5mg valtrex 500 mg generic purchase viagra 100mg viagra 25mg sildenfil indo metformin 500 mg diflucan 400mg zoloft 100 mg pregnancy kjop viagra online kamagra 800mg tabletki zithromax generic name generic wellbutrin a 102 ttc clomid 50mg synthroid buy it safest online viagra celebrex price generic metformin 500mg sr hydrochlorothiazide 25 mg tqua denmark viagra online cialis generico tadalafil viagra 25 mg online buy viagra england viagra generico medley kamagra 120 mg generic 5 mg propecia cialis 20 mg djelovanje cialis 20mg avis dapoxetine 60mg online zoloft 50 vs. 100mg buy propecia europe buy cialis wiki cialis 20 mg betrouwbaar lexapro at 40 mg doxycycline mg chlamydia prednisone mk 5 mg online cialis ordering buy viagra safe zovirax 5mg cream strattera generic drug buy levitra cyprus generic cialis tablet generic viagra coupons strattera 70 mg order bactrim cheap cialis 5mg. daily levitra 10 mg kullananlar levitra 20 mg bayer 40 mg de prednisone cialis 50mg pills metformin 500 mg indication 250 mg doxycycline celexa citalopram 20mg im phenergan 12.5mg cialis hungary buy buying viagra forum rhoxal cipro 500mg tetracycline 500 mg discontinued cialis 2.5 mg box manufacture generic viagra diflucan 2cps 150mg xenical mail order kamagra soft generico order propecia india zovirax 800 mg uses levitra 10 generico buy kamagra 1000 tabs online yurtdisina viagra viagra 100mg efeitos posologie doxycycline 100 mg buy clomid 25 online generic lexapro headaches wellbutrin 40 mg generic cialis nz buy levitra noida comanda cialis 10 mg amoxil dosage mg propecia 0.25mg effective viagra 20mg price 110 mg viagra generic lexapro acne zovirax comprimido 400 mg celebrex 200 mg danger buy nexium online buying levitra jakarta nolvadex liquid buy hypothyroidism generic synthroid cialis generic benefits cialis 20mg efeitos cialis tadalafil 10mg 500 mg wellbutrin buy cialis 40 mg doxycycline 100mg effects propecia generic review cialis 1800 mg zoloft australia buy cipla clomid 100mg augmentin 875 mg sobres viagra usa buy billig cialis online viagra generico 2013 cialis cena 5 mg. gebruiksaanwijzing cialis 20mg propecia ie buy 500mg cipro toothache cialis 5mg effectiveness viagra online chemist generic viagra dick zithromax sirop 300 mg generic cialis fedex precio lisinopril 20 mg cialis 5mg diario viagra cheap 100mg zoloft generic form cipro generic 500mg zithromax 100 mg 1 tablet erythromycin eth 400mg generic lexapro reaction zovirax tablet 400mg viagra de 50 mgs xenical online portugal clomid 100mg ed clomid 100mg reussite fgr viagra generico viagra cheap less
Home Pete Toms LWIB: The State of Revenue Redistribution in MLB, plus Tidbits

Like Shoot to Thrill - An AC/DC Tribute on Facebook!

An authentic tribute of AC/DC that covers the best of the Bon Scott era and the best of Brian Johnson's material

Who's Online?

We have 1562 guests online

Atom RSS

LWIB: The State of Revenue Redistribution in MLB, plus Tidbits PDF Print E-mail
User Rating: / 37
PoorBest 
Pete Toms Article Archive
Written by Pete Toms   
Monday, 14 February 2011 22:08

Last Week in Bizball by Pete Toms

This week in “Last Week in BizBall, the state of revenue redistribution in MLB, plus many tidbits

REVENUE REDISTRIBUTION IN MLB

LWIB, Baseball Prospectus published a very informative and thoughtful piece by Neil deMause on the past and present efforts in MLB to promote competitive balance via revenue sharing. Neil’s column was inspired by Yankees President Randy Levine’s recent caustic remarks directed at Rangers owner Chuck Greenberg. Essentially, Levine said that it was time for the Rangers to get off welfare. In other words, become a revenue sharing payor and stop being a payee. As Neil points out, disputes within MLB ownership over revenue sharing is nothing new. (Remember Kohler?) For decades, MLB has endeavoured via the amateur draft, splitting the gate, centralizing revenues, sharing of local revenues and the so called “luxury tax” to mitigate the inherent advantages that large markets have over smaller markets. Inspired by Neil’s column, and as MLB enters the final season governed by the current CBA, it is convenient for me to add my thoughts on the present and future of revenue sharing.

One of the most important changes made to the CBA in the last round of collective bargaining was to the marginal tax rates used to calculate the revenue sharing component. Subsequent to the conclusion of negotiations which resulted in the current CBA, Maury Brown interviewed sports economist Andrew Zimbalistv. Mr. Zimbalist was the architect of the current revenue sharing formula and made this forecast:

It is a significant improvement over its predecessor. It lowers marginal tax rates for all teams. It also realigns the marginal rates so the low revenue teams now pay basically the same rate as the high revenue teams (in practice the marginal rates now will vary between 30 percent and 32.5 percent). Together, these two changes will undo the perverse incentives in the last CBA which should minimize the behavior of some teams not using their transfers to improve their onfield performance.

MLB is about to enter its fifth (and potentially final) season operating under the current revenue sharing formula. Is/has it contributed to less economic disparity? 2010 saw the greatest number of $100 million plus contracts awarded (Lee, Crawford, Tulo, Werth, Holliday, Mauer, Howard) since 2000. Yes, MLB is awash in money (record $7 billion in revenue last year) but the SportsBusiness Journal pointed out that, “…nowhere in that list are the New York Yankees and Mets, Chicago Cubs or Los Angeles Dodgers — four clubs typically among the highest earners in MLB. That quartet of teams was involved in nine of the prior 19 $100 million-plus contracts. Just as in the standings this past season, and the San Francisco Giants-Texas Rangers World Series matchup, MLB’s economic middle class continues to grow more assertive.” Might the total amount of local revenues redistributed via revenue sharing last year also suggest diminishing economic disparity in MLB? Maury Brown pointed out in 09 that MLB had stopped disclosing revenue sharing figures in recent years. However, we do know that last year the total amount of revenues redistributed via revenue sharing actually decreased over 09 despite a year over year growth in industry revenue. Maury Brown explained the decrease. While revenues increased, some of the payors saw net local revenues increase at less a rate than some of the payees, hence the decline in revenue-sharing dollars. Any discussion about economic disparity in MLB inevitably focuses on the riches of the Yankees. But did 2010 demonstrate that the economic gap between the Yankees and their peers has diminished? Despite an increase in the Competitive Balance Tax threshold, the Yankees payment decreased over 09 and in fact was the smallest “luxury-tax” bill they had been assessed since 03.

SELECT READ MORE TO SEE THE REST OF THIS ARTICLE, PLUS A WHOLE LOT TIDBITS

But as Neil deMause notes, there are factors contributing to economic/competitive disparity beyond sharing of local revenues. Centralized revenues are also key. As competition amongst RSNs, telcos and DBS for local TV rights are yielding enormous guaranteed deals (see here) and some club owned RSNs (YES, NESN, SNY) are thought to be worth more than the baseball franchises, MLB’s national TV deals are less important to economic parity. From Neil’s BP piece:

…According to the informative (if less than creatively titled) book Free Agency and Competitive Balance in Baseball, by 1980 national TV revenues exceeded local TV revenues for the first time in baseball history. And because national TV revenues have always been shared among all the teams, what followed was the Golden Age of Baseball Parity, in which 11 different teams won the World Series in the course of 12 years, and baseball's Gini coefficient (a statistical measure of inequality) fell to all-time lows..

What ended the Golden Age was the rise of local cable deals. The Yankees' $500 million contract with MSG in 1988 begat the YES Network, and the Red Sox' purchase development of NESN, and so on. As the share of revenue that was shared via the national TV contract dropped, teams without tens of millions of cable-ready fans couldn't compete, and we soon enough had entered the Gilded Age of Baseball Disparity, which, the occasional Marlins championship banner notwithstanding, we're still in.

For many decades, centralized revenue meant national TV contracts. The present and future of centralizing media revenues in MLB will be increasingly about broadband and wireless rights (see recent ESPN deal with NFL). In 2000, the owners funded the formation of Major League Baseball Advanced Media (MLBAM or BAM), the so called digital arm of MLB. MLB awarded the rights to digital media for all clubs to BAM because they wanted to centralize that revenue. BAM evolved into, unquestionably, the industry leader in streaming live sports. BAM’s “out of market” live game offering MLB.tv and mobile “At Bat” app are both huge successes. BAM has been so successful operating MLB.com that they also provide live streaming and authentication technologies to the likes of MMOD and ESPN3. BAM also operates the team web sites of all MLB franchises plus provides primary (Tickets.com) and secondary (industry wide partnership with StubHub) ticketing. So successful is BAM that last year they reportedly rejected an offer of $1 billion. As consumption of digital media increases, the role of BAM, already vital, will become more important in MLB. As with any revenue sharing initiative in MLB, past or present, the centralizing of digital revenues in MLB has, and is, a contentious matter amongst clubs. In November I wrote:

…But for all BAM’s success, there are those in MLB who believe BAM is too powerful. Those critics question if BAM plays too large a role in areas that would be better exploited by either individual clubs or third party rights holders. Specifically, team and league wireless rights, in-stadium wireless, in-market streaming of live games, control of online video “highlights” (ie. ESPN.com broadcasts highlights of MLB games but RSNs - many owned, at least in part, by clubs, don’t have access to online video) and ticketing (both primary and secondary). (see more here) BAM has also antagonized some fans by restricting use of video on blogs. (see MLB Doesn’t Seem to Understand the Internet and follow the links within)

In January 09, MLB launched their own cable channel, MLB Network. (MLBN) Due in large part to sharing equity in the channel with the iN Demand cable consortium, MLBN launched in a record 50 million homes. That number has increased to 56 million. In December, MLBN CEO Tony Petitti stated that he hoped to cut deals with Dish Network and AT&T before this season which would increase the channel’s distribution to 70 million homes. Mr. Petitti also said, "We'll have the ability to make distributions in 2011," Petitti said. "That's really up to the commissioner's office as to what form those take and when and what they want to do with that money." When the current national TV deals with Fox, ESPN and TBS expire after the 13 season, MLB will have the option of “selling” an exclusive package of games to MLBN in hopes of increasing both subscriber fees (although that is complicated by sharing equity with iN Demand) and distribution.

Formal CBA negotiations will begin later this year and neither side appears to be fundamentally unhappy with the current revenue sharing structure. There are occasional outbursts of discontent such as we just witnessed with Randy Levine. In December 09, Red Sox owner John Henry lambasted MLB for subsidizing chronically uncompetitive teams guilty of pocketing revenue sharing/central fund receipts. 2009 also saw Brewers owner Mark Attanasio and Pirates president Frank Coonelly publicly argue that increased revenue sharing was a necessity. But the “leaked financial docs” of last year, which revealed that the Pirates and Marlins are profitable, provided the ideal opportunity for the big “payors” to discredit revenue sharing and not one was quoted in the media. The “leaked financial docs” also afforded an opportunity to the PA to discredit revenue sharing, but they too, remained silent. After all, revenue sharing suppresses player compensation. Satisfaction within the industry over revenue sharing was probably best exemplified by the cooperation amongst the PA, MLB and the Marlins last year in agreeing that that franchise will invest more of their revenue sharing proceeds in the big league roster. When formal CBA talks begin I’m curious to know if the PA will be looking to share in revenues from club owned RSNs and if they are satisfied with how (and how much) they are sharing in the profits of BAM and MLBN. But as for how currently defined local revenues are shared? I don’t see it as an issue in the upcoming negotiations.

TIDBITS

  • Lots of pundits don’t like salary arb because it results in HUGE salary increases, whether you file or don‘t. I like salary arb because it ended holdouts and the players receive, relatively, peanuts in compensation their first two years, so I‘m ok with them cashing in big in year 3. (I won’t get into Super Two’s) Plus, the owners are uber rich and MLB hauled in $7 billion last year plus there are the RSN revenues and yada, yada….LWIB the Ross Ohlendorf salary arb settlement provided fodder for the anti-salary arb camp. (they also don’t understand the irrelevance of W/L in evaluating the worth of pitchers) Murray Chass, Now the standard has hit rock bottom. Ross Ohlendorf has won his salary arbitration case despite having won only one game last season. One victory equals $2,025,000, the three-member panel of arbitrators ruled last week. The $1.4 million salary Pittsburgh submitted wasn’t enough of a raise from the $439,000 salary Ohlendorf earned last year.” Ed Sherman, “When it comes to player salaries, this one tops everything. Last year, pitcher Ross Ohlendorf went 1-11 for the Pirates. Sure, Pittsburgh scored two runs or less in 13 of his starts, but he still was 1-11. Yet Mr. Ohlendorf managed to win his arbitration case against the Pirates. As a result, his salary will go from $439,000 to $2.03 million. Imagine how much money he will earn if he wins two games in 2011.” I say, congrats Ross.
  • I think I’ve mentioned this before, but this season will be the first that all local Cardinals TV broadcasts will be solely available on cable. The Cards are the latest example of the sports TV industry-wide migration from over-the-air to cable. I understand the money end of it, the superior “dual revenue” (sub fees and ads) cable model and all of that… but shouldn’t some games be available on so called “free TV”? I know cable subscription is tied to income and baseball fans skew relatively prosperous but still….a large number of people don’t have cable and some of them must be ball fans. And ball clubs get public money so shouldn’t all of the public be able to watch them play, at least occasionally? (have I become Dave Zirin?) And also, from a business end, doesn’t putting your games exclusively on cable risk “ghettoizing” your product to the already converted? Jacob Newkirk isn’t happy about the Cards cable exclusivity.
  • Last season, Fox experimented with Saturday prime time games. I guess they were pleased with the results because they have Saturday baseball on Fox scheduled in prime time three consecutive weeks in May. They also have some 1:10 PM ET starts scheduled and you should read the Sports Media Watch blog where I learned this.
  • Bonus kickbacks, age and identity fraud, steroid use…the reputation of the buscones in the Dominican Republic has taken a severe bruising the past few years. LWIB, the allegations against the buscones hit a low point when one of their most successful was arrested and charged with sexually molesting two of his players in 2003. See Baseball America and Alan Schwarz.
  • LWIB, it appeared more likely that this season will be the last for the Cal baseball program. Cal announced in September that the baseball program would be amongst five sports programs axed as a result of a need to cut costs. A subsequent fundraising campaign rescued three of the five programs but not baseball. Cal chancellor Robert J. Birgeneau acknowledged that Title IX was a major factor in the decision. Read Aaron Fitt in Baseball America for the full report.
  • Phillies fans already know that Comcast has them by the balls, so to speak. Thanks to the “terrestrial loophole”, Comcast has long been able to withhold CSN Philadelphia from their DBS competitors. So, if you’re a Phillies fan you’re also a Comcast subscriber, like it or not. But as Jonathan Berr reports, thanks to the FCC approval of the Comcast/NBCU merger, Phillies fans should soon have options.
  • LWIB, developers unveiled plans to construct a multi facility sports complex in Las Vegas. There is obviously a LONG road ahead before any of this becomes a reality but evidently it …would include a 9,000-seat ballpark capable of expansion for hosting an MLB team.

Pete Toms is senior writer for the Business of Sports Network, most notably, The Biz of Baseball. He looks forward to your comments and can be contacted through The Biz of Baseball.

Follow The Biz of Baseball on Twitter Twitter

FacebookFollow the Business of Sports Network on Facebook

 
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?