We focus on the application of business practices to operate a successful sports organization. For this special blog, topics emphasized are promotion in sport, sport marketing, the development of sport marketing plan, financing a sports organization, sport sponsorships, sales application to the sport industry will be emphasized.

Tuesday, February 21, 2006

MLB expects less drama in next labor deal by Dave Andrews, v8, i39

Major League Baseball is expected to pursue far less when reaching economic reforms in the next labor deal as compared to the prior negotiations with the MLB Players Association. While MLB gained extensive increases by revenue sharing and luxury tax in their 2002 labor deal, Bud Selig (MLB Commissioner) claims to not as for as much this time around. Revenue sharing and luxury taxes help keep the parity in the league divided as equal as possible. Throughout this past labor deal, only revisions to the drug-testing policy have been dramatically revised.

MLB has crowned six different world champions in the last six years; compare this to any other of the major leagues and you won’t find this parity. MLB was in economic trouble in the past, while today, they’re on an unprecedented fiscal rocket ride. Industry revenue is approaching $5 billion a year while attendance in 2006 will surpass 77 million maybe even 78 million, which would top last year’s all-time record of 74.9 million by about 3 percent.

It might be impossible for teams such as the New York Yankees to stop spending millions for prime players, while other times such as Pittsburgh, Tampa Bay and Kansas City to win a pennant, but increasing revenue sharing might help solve more of these issues. Another important issue is keeping the fan base on the field and not outside the stadium. When fans are concerned with off-the-field issues, they will not watch the game from the stadium; rather watch the game from home or at a local establishment.