"It's kind of counterintuitive," says Paul Sweeney, a media analyst for Bloomberg Industries. "It's just that sports are kind of less bad. They're doing better than other programming."

You can't blame baseball for cashing in on this backhanded blessing. After all, when your customers willingly pay $8 for a lukewarm Budweiser, it's safe to assume they'll buy anything at any price.

Baseball is "in a fantastic position," says Chris Bevilacqua, a New York media consultant. "It's going to continue."

He should know. Not long ago, the Texas Rangers were a color guard for mediocrity at both ballpark and bank. But even as they were emerging from bankruptcy, Bevilacqua negotiated an estimated $80 million annual deal for local TV rights. He arranged another $60 million a year for the feeble San Diego Padres.

"It's like any other market," he says. "The markets go up and down. In the case of media and sports rights, they very rarely go down."

He's right. Or at least that's been true in the past.

Bob Gessner knows the drill. He's president of MCTV, a cable provider in Massillon, Ohio, that carries Cleveland Indians games. For the past decade, the Tribe has been a woeful club, losing games and fans with equal facility.

"In a year when the team does well, the reset [for broadcast fees] is due to the team doing well," says Gessner. "When the team is doing poorly, the rates will jump just as much because they need money to rebuild the team."

Cable and satellite companies grudgingly succumb, no matter how illogical the deal. Every provider feels forced to carry the same channels, lest customers flee to a competitor.

With no one saying no, the networks see sports as a no-lose racket, with ESPN as its piper. The sports channel charges cable companies $5 a month per customer, by far the highest monthly fee in national television. While that may seem a pittance, it's big money when spread over the 100 million U.S. households with pay TV. And it's made the other big boys envious.

NBC and CBS have launched their own sports channels. Another from FOX is on its way. Even regional sports channels are starting to broach that $5 mark. Their bet is that viewers will always be willing to pay more. And more. And more. Economics on the ground say otherwise. Today, the average TV bill rests at $86 per month, about half of which pays for sports programming. That's more than double a decade ago. So it's no coincidence that the cable and satellite industries have been jettisoning customers for nine years straight.

The new round of deals promises to hasten these unpleasant trends. "I can't tell you what will be the trigger," says Matthew Polka, president of the American Cable Association. "But I am certain that at some point in the very near future, that balloon will burst."

And when it does, baseball will take the brunt of the explosion.


Fixed Odds and Fleeing Fans
To understand baseball's decline is to appreciate its awkward relationship with the very thing it sells: competition.

The NBA and NFL, those exemplars of socialism, share most of their revenue, realizing that for their sports to thrive nationwide, San Antonio and Green Bay must get the same cut of hope as Boston and Chicago.

Yet baseball hews closer to raw capitalism, where the big crush the small with painful regularity. If you're a fan in Miami or Denver, that's not entertainment; that's everyday life.

On opening day next year, the Dodgers' local TV contract will pay for their entire $200 million-plus roster — the highest in baseball — before they sell a single ticket, hot pretzel or warm Pepsi.

Across the country in Minneapolis, the Twins' deal will be enough to cover the salary of their best player, catcher Joe Mauer — with perhaps a weak-hitting infielder to spare.

Though baseball has long played with a rigged financial deck, it's about to get perilously worse.

The game, of course, does its best to subdue such talk. The surest way to keep front-office types from the phone is to request an interview to discuss how the latest local TV deals will affect competitive balance. The Padres, Dodgers, Cardinals, Twins, Brewers, Indians and Pirates all declined comment for this story.

Selig's office isn't any more effusive. "We are going to take a pass on this one," says spokesman Matt Bourne.

Still, it's safe to say that these fixed odds have deposed generations of fans in smaller cities across the land. In any given year, half the teams are in the midst of three- to five-year rebuilding projects, since they're financially barred from the faster route of free agency. At the same time, the league has done little to make all that losing bearable.

While the NBA and NFL constantly remake rules for speed and action, baseball's last significant change was the designated hitter. In 1973.

The result has produced a spectacle once described by the Boston Globe's Ray Fitzgerald as "six minutes of action crammed into two-and-one-half hours." Forgive young men for preferring Call of Duty or football by the time the Fall Classic rolls around.

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7 comments
mekra
mekra

It's weird to reference new media and not take it into account.  MLB.TV delivered 127.2 million streams in the first two weeks of 2009.  It's hard to casually find statistics about the subscriptions last year, but that 127.2 million number was a 136 percent increase from the previous year.  Attendance has also risen steadily at MLB stadiums.  Check out the wiki for record-setting home attendance; most of the numbers are in the 2000s (decade, I mean).  http://en.wikipedia.org/wiki/Major_League_Baseball_attendance_records

You also wrote: "While the NBA and NFL constantly remake rules for speed and action, baseball's last significant change was the designated hitter. In 1973."

That's just plain wrong.  The MLB added a one-game wildcard last year in both divisions and updated several rules before the start of this season--notably a rule on balks, which was certainly imposed to speed up the game.  There's also talk of eliminating the intentional walk.  

That wildcard game drew only 4.6 million viewers--to TBS, which considered it a smash success.  You also make a lot of choice comparisons between a series of games to ratings for a single game championship like the Superbowl, which is especially hard to swallow given how the Giants crushed the Tigers last year.  Lots of people didn't continue watching the blowout, but that's true of any sports event.

You're also wrong about salaries determining championships or the Cubs would have won one by now.  Plus, the Yankees suck this year, and they're pouring money into their team.  The Dodgers are good, but they were beaten by a smaller payroll.  The A's made it to the postseason on a pretty light budget.  And about that "faster route of free agency"--ask the Marlins how that works out.


I just don't think that this editorial was well researched or reported.  

egolterman
egolterman topcommenter

Taxpayers here are picking up 'more' tabs than others paying off Ballpark bonds from hotel- motel tax for 30 years-commitments made by government officials based on inclusion of Ballpark Village. o taxpayers get a cut of all the new parties, banquets and special events revenue the Cardinals are loading into the Ballpark? Will they get a cut out of the beer sales from Phase One-Village?  May be baseball is heading toward a cliff but Cardinals owners cleared $20 million last year. That does not include the increase in value of their stock. And, they keep the ticket-tax revenue? 6 million a year.  Are you kidding me? Mayor Slay-take the sheriff over there, get that money and hire another 100 police officers. Ticket tax revenue is not to be kept by entertainment venues, producers or franchise owners. Make the rounds of all  and get it.

auxarcs
auxarcs

The MLB players union is the strongest and most unified union in sports. They would not sit still for salary reductions. No facts can change their belief in "habeas wampum" which means, "you have money, now give it to me!" Like the auto workers union that insisted, "it's not our fault the company gave us a contract they can't afford", they would rather destroy their business than compromise. I don't see how the ticket prices can go any higher, so MLB will need to go into bankruptcy,  or get the government to bail them out. If the players' union has contributed enough money to politicians, the governent will bail out MLB. The government auto company bailout helped the union by preventing GM and Chrysler from going into bankruptcy court to reorganize their businesses and renegotiate unsustainable labor contracts.

auxarcs
auxarcs

It's true that baseball doesn't draw as big a TV audience than football, but more people play various forms of baseball, softball, wiffle ball, t ball, kick ball, than any other sport. In that sense, baseball is still America's pastime. 

kevinalbright8
kevinalbright8

The author seems to think that merely the price of tickets and beer would skyrocket if TV money decreasaed dramatically. I don't see some sort of epic collapse of baseball, because player salaries would be slashed.  There would definitely be a big struggle, but baseball is not on the verge of falling off a cliff.

egolterman
egolterman topcommenter

@kevinalbright8 Yes and there is no way the City should have given up the ticket tax revenue to them, or the Fox, or now to the Blues. That's pure theft. And with Village a decade late and nothing like what gov officials were 'sold', the County should stop payment on  the Ballpark bonds, and refer the bondholders to the boys in Cincinatti for the payments.

 
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