Struggling Economy: What Changes Will Baseball See?

For this weeks post, I chose to explore the blogosphere in search of relevant information tying together our struggling economy with the business of baseball. Like I thought, finding good quality information on this subject was not extremely difficult. However, I wanted to make sure that it involved two of the biggest money spending and revenue generating teams in baseball. The first blog that I commented on is titled "The Biz of Baseball". The best feature of this blog is that it is strictly dedicated to baseball as a business. A lot of the time when you are searching for baseball information online, you are side tracked to an amateur site that it is irrelevant. The Biz of Baseball offers a very in depth look at certain aspects of baseball as a business. The article that I posted on, discusses the struggles of Citigroup as a company and whether or not this will affect the naming rights deal that they have with the Mets. The author of this post is Maury Brown, who is the founder of the Business of Sports Network. The next post that I commented on is regarding the Yankees, new stadium with high priced seating and the struggling economy. The blog is titled "The LoHud Yankees Blog" and this post in particular discusses the Yankees currently on the free agency market. What I chose to comment on is how the Yankees and owner George Steinbrenner will deal with the fact that 7 luxury boxes priced at anywhere between $600,000-$850,000, have yet to be sold. That is a lot of money, and with the struggling economy several of the big companies that used to purchase these seats are now unable to afford them. I ask the question of how will Steinbrenner be affected during this upcoming season, because we have seen no slowing down by the Yankees in this year's free agency hunt. Below are both of the comments that I posted on the blogs that I just discussed.


Citi Field Name Safe, According to Mets
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Maury:
Thanks for your interesting post. I have been very curious as to what the implications of our struggling economy will be towards the new Citi field. Our country is at a point right now where it feels like every single day our economy is turning for the worse. It does not look like we are going to see change any time soon in this regard. 53,000 employees laid off, and yet there is no problem with the naming rights deal. For some reason I find this information very hard to believe. When a company goes ahead and fires nearly 20% of their work force, it is very clear that it is struggling as a whole. I am curious whether this is the whole truth, or there is information being held up. The $400 Million deal is one of the most lucrative naming rights deals of all time. With Citigroup struggling so much as a whole, I would think that the $20 Million annually that they will have to pay for the next 20 years may be difficult. Where were you able to pull these sources from? I'm sure that in the end Citigroup will retain there naming rights, but as the company is walking on thin ice, I would guess that this deal could collapse at any moment in time.

What are your opinions on the matter? Do you think that there is truth to what Jay Horowitz has said in response to the questioning? I don't see how a company that is locked in to such an expensive deal cannot feel any stress regarding the situation right now. When a company has to let that many employees go they are clearly facing difficult times. It probably came down to a decision of what was more important, and the deal with the Mets was the correct choice. Thanks for keeping me updated on what's going on.

Hal: We're Ready For Free Agency
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Peter:

Thanks for giving such up to date information regarding the Yankees. What I would like to address is the affects that our struggling economy will have on the Yankees, and the Steinbrenner's. I believe you said that seven of the luxury boxes have remained unsold. I read somewhere else that they are all down the foul lines, and priced at somewhere between $600,000-$850,000 a piece. Clearly these boxes are being purchased by large companies who can afford this type of season box. With our economy in such dire straits and companies facing such economic struggles, it is very possible that these boxes will not be purchased all year long for those prices. My question is how will this struggling economy affect Mr. Steinbrenner's pocket with such a hefty payroll. I'm sure all of the seats that the Yankees were intending on selling for $2000 a ticket behind home plate will not be sold out either, at least for that price. I feel like this could end up being a real shock, with a $200 Million payroll and possibly a stadium that is not sold out, the big boss could end up losing some money. What do you think? I know the T.V deal is always a big money maker, but it may not be as profitable this year.

While we are on the subject which big time free agents do you think the Yankees will end up signing? I am fairly confident that C.C will end up in pinstripes, but which of the other big name pitchers do you think they will get. To be honest with you, I personally think that Peavy is the best of all. He had a down year, but the morale in San Diego was so low. He has some of the most electrifying stuff in the league, and I know that he would be a huge asset to the Yankees rotation. Even more of an asset than C.C would be. Burnett has always been a head case, yes he has a live fastball and a deadly curve ball, but you can count on him to get inside his own head and start causing some problems.

Respect the Rookies: Longoria and Soto Take the Awards

One of the most telling awards that baseball offers its athletes is Rookie of the Year. Both of this season's winners were so successful throughout the year that the race was basically over in July at the all-star break. Any athlete, manager, team executive or fan, would tell you that the most important thing to any of them, is winning. This season, Evan Longoria of the Tampa Bay Rays and Geovany Soto of the Chicago Cubs, were both integral parts to their teams success. Sometimes the Rookie of the Year award is won mainly because of a lack of competition. The National League did not offer much competition for catcher, Geovany Soto. The only real threat to his victory was first baseman for the Cincinnati Reds, Joey Votto. Votto, never really stood a chance against the outstanding rookie for one of America's favorite teams. Not only did Soto put up fabulous offensive numbers for a Rookie and he did it playing the most difficult position. Evan Longoria in my opinion was the most valuable player for the Rays this season. When they really needed it most, he was the guy that carried them on his shoulders down the final stretch of the season. It is no wonder he was the unanimous Rookie of the Year in the American League. Even after starting off the season slow, and then missing 5 weeks with a broken wrist, Longoria sparked one of the best turnarounds in any franchises history. Longoria was up against other talented rookies such as Alexei Ramirez of the White Sox, but was the clear favorite. What I am going to propose is that a Rookie of the Year should be able to earn a greater salary in his second season, rather than have to wait to become arbitration eligible. Sometimes a team will give a player a bonus when they don't have to, but it is never an amount close to what they truly deserve.

As the title of my blog points out, the catching gear is nicknamed "The Tools of Ignorance". Catching is the most difficult job as a position player. The last National League catcher to win this honor was Mike Piazza for the Los Angeles Dodgers in 1993. Soto was a member of the best Chicago Cubs team in a long time. Unfortunately for him, and the rest of Chicago, their best chance at breaking the curse in a long time was spoiled by bad defense, and a red hot Manny Ramirez. Nonetheless, the 25 year-old Soto earned $401,000 during his Rookie of the Year campaign. Soto is set to make $500,000 during the 2009 season. Here is one of the fundamental problems I have with executives in baseball. Soto, who is clearly an upcoming talent in the major league's is going to make to earn about as small a salary as one can. Meanwhile, backup catcher Henry Blanco, is all set to earn $3 Million in salary. I understand that Blanco is a proven veteran, but it still boggles my mind when the back up is earning significantly more than the starter. I think that baseball should impose a rookie success rule, that allows players who attain a certain amount of success to be given a hefty salary increase.

Apparently the Ray's knew they had something special in Longoria, because they signed him to a long term deal worth up to $44.5 Million over 9 seasons. What a smart move, because when his deal is up with the Ray's, you will see him signing one of those insanely large deals with the Yankees or Mets. The Rays now have Longoria locked in to a long term deal, and a player to build their franchise around during future transactions. These types of deals are happening more often in baseball today, and I see it as the "smart play". The Florida Marlins just signed 2006 Rookie of the Year, Hanley Ramirez, to a contract extension for 7 years and $70 Million. If Ramirez were to go into free agency you can bet he would have received a deal much more elaborate than that. He is one of the brightest young stars in baseball, but like any other business, security is of great value. It is a classic win-win situation. The Marlins signed one of the top players in baseball for a reasonable price, and Ramirez has given himself lifetime security.

I am not sure whether the Cubs think that Soto is not worth a long term contract yet, or he just greatly exceeded expectations. Either way he is going to earn $500,000 with very little security while Longoria is set for the future. Baseball should seriously consider rewarding its rookies who perform at the highest levels. If their teams are not willing to offer them a long-term contract, they should at least be able to earn the salary of one of the better players in the league.

Expect the Unexpected: A Season of Surprises

Just like that the season is over. Every year it is the same thing, the regular season lasts a lifetime, and the post season is over before you know it. Sometimes I wish we could speed up the regular season and slow down the post. With another year gone, we now have more stories to tell about another incredible season. After exploring the blogosphere, I have chosen to comment on two of what I feel are the most important stories coming out of this season. One of the top stories is the rising of the Tampa Bay Rays a dominant force in the American League East. Before the season they decided that they would no longer be the "Devil Ray's" but only go by the "Ray's". When this happened nobody really cared, because, lets face it they have never been very good. Little did we all know that this little cared about franchise was about to have one of the best turnarounds in a single season, in the history of Major League Baseball. The first blog I posted on "Kreuzer's Korner" is a blog that will discuss anything of interest. Mostly the topics are current issues, that have stirred up some interesting conversation. This week the post was discussing how the Cinderella Story came to an end for the Ray's. I understand what he is trying to say but it still is difficult for me to not call the Ray's season a Cinderella story. Below I posted my comments and thoughts on how I felt about this post. I have followed the Ray's all season long because I love watching a team with a small payroll defeat the Yankees. The next blog I posted on is part of AOL, and it is called "MLB Fanhouse". The post that I chose to comment on was another big story from the end of the season. The post is regarding Bud Selig nearly ruining the World Series by calling the game only after playing 1 1/2 innings in a torrential downpour. I posted my thoughts on how I feel about commissioner Selig and some of the other mistakes he has made throughout his career at this position. Both of these blogs that I posted on give objective opinions on recent news in the sporting world and offer insight that I both agree and disagree with.

"The Slipper Doesn't Fit...End Of Cinderella Dream For Tampa Bay Rays" Comment

Yes, it is true the Rays fell just short of the Cinderella season. Yet, I find it so incredibly hard to not call it one. Tampa Bay has been the laughing stock of the league ever since they were brought into the league. It doesn’t help that they have been competing in what has been the toughest division in baseball for the last five years or so. How can you not call it a Cinderella season? They went from being the worst team in the league, to American League champions. It was an absolutely spectacular season. To be quite honest with you I don’t even know how it happened. Yes, Evan Longoria had an incredible year once he came back from injury. He carried this team on his back through some tough times, and although he struggled in the World Series, has a lot to be proud of. The pitching was great all year long. If I were to have given you that starting five at the beginning of the year you would not expect them to have done things they did. Now coming back next year you are looking at David Price and Matt Garza who in my opinion will both become stars in this league. How about B.J Upton almost tying his home run total during the season in the playoffs alone. What about blowing a huge lead against the Red Sox, and then still coming back in game seven to win. It was amazing. They just ran out of gas. I think it is safe to say that this Ray’s team under the leadership of Joe Maddon, is going to be good for a while. These young athletes all grew up during this season, and they are going to be making noise for years to come. In my opinion, it still can be called a Cinderella season.

It is all just part of baseball. Only one team is truly satisfied at the end of the season, and everyone else just gets back to work. Hopefully this year said something to fans in Tampa Bay, and they can really become a powerful franchise. They had an exceptional season, even when expectations were low as usual. They were exciting to watch, you never knew how it was going to happen, but these guys had an uncanny ability to win. That is the beautiful thing about baseball, money is not always going to put “W’s” up on the board.

"Bud Selig Nearly Ruined the World Series"
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Pat, Thanks for your post. Just like you, I am an extremely dedicated baseball fan. Although neither of the teams competing in the World Series was my team, I will always enjoy the games at the end of the season. Bud Selig has tarnished his reputation once again. Why in the world did these teams play in the ridiculous weather? After the game I spoke to numerous people, and several of them just said I felt bad for the athletes. It was not baseball out there, they were all helpless. The only thing that could have come from this game would have been serious injuries. It is actually a miracle that nobody was seriously hurt. Clearly the players will do their jobs and play, but it was almost unbearable to watch.

This leads to my next question. What qualifications and results should we see in the next commissioner of Major League Baseball? Selig has been okay, but has also made several mistakes that have caused great amounts of criticism. The Phillies were the better team, and fortunately for Selig they came away with the title. The momentum was clearly shifted back to the Rays once this unprecedented rain delay took place. I think at several points in Selig's career as the commissioner he has not been sure about the decision that he is making. Baseball needs a solid commissioner who is not afraid to let his point be heard. Roger Goodell of the NFL is doing a great job with issues like Pac Man Jones and so forth. He is laying down the law and I think that it truly is helping the game.

It turns out that this rain delay made the series even more exciting. I've never seen a game where the teams top set up man start the game in a 3 1/2 inning battle to the finish. For three days the city of Philadelphia was on its heels, just hoping to get this thing over with. For a while it looked like a blind-sided right hook that was thrown by the curse. Luckily for them, it wasn't. It was just one more bump in the road that they had to overcome.