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Base ball gears. /VCG
Whenever the MLB starts their new season, many of the games will have to happen behind closed doors, which will lead to financial losses. According to the Associated Press which learnt it from the office of the union commissioner, each empty game will cost 640,000 U.S. dollars.
In a 12-page document entitled "Game Economy with No Fans Present," it's proposed that the season start around July 4. Teams claimed that even if this plan is carried out, the MLB will lose some four billion U.S. dollars while players are paid 89 percent of the revenues. Therefore, the more games they play, the more money they will lose.
Players disagree and were convinced that as long as games are happening, more revenues will be created. Besides, many team owners are also shareholders of regional sports network, Therefore, more games being played should be able to benefit the teams.
With such differences of opinion hanging between them, the teams proposed to split the revenues 50-50 and the players rejected the plan.
D.J. LeMahieu #26 and Luke Voit of the New York Yankees celebrate after scoring on an RBI single by their teammate during the sixth inning in the game against the Baltimore Orioles at Oriole Park at Camden Yards in Baltimore, Maryland, May 23, 2019. /VCG
The suspension already hit the teams hard in their finance. For example, the New York Yankees calculated their loss to be 312 million U.S. dollars of which the biggest part was the 100 million for the bonds that funded the new Yankee Stadium.
Other big teams are also watching painful financial losses – 232 million for the Los Angeles Dodgers, 214 million for the New York Mets, 199 million for the Chicago Bears and 188 million for the Boston Red Sox.
By contrast, poorly-performing teams seemed to be doing better. For example, the Detroit Tigers and the Pittsburgh Pirates may lose 84 and 91 million U.S. dollars respectively. Nonetheless, the union questioned the teams' calculating method and asked the MLB for different documents.
The MLB said that the 2019 revenues are 39 percent from local gates and other sources in the park, 25 percent from central revenue, 22 percent from local media, 11 percent from sponsors, and four percent from others.
Enrique Hernandez #14 of the Los Angeles Dodgers celebrates with teammate Joc Pederson after hitting a solo home run during the second inning of Game 5 of the National League Division Series against the Washington Nationals at Dodger Stadium in Los Angeles, California, October 9, 2019. /VCG
Things can get even worse if the suspension continues and bites the playoffs. If post-season fixtures are cancelled, the MLB can kiss 787 million U.S. dollars of media money goodbye.
The league and the union in late March already reached a deal about player salary in a shortened season. The two sides also had an agreement for the scenario in which the whole season gets cancelled. However, as the plan to start the season behind closed doors is put on the table, the teams believed it's necessary to renegotiate while the players said there's no need for that.
In fact, both sides wanted the season to begin soon. The league does not want to lose money and the union wants to help players keep their salaries. They need to work out something that they both can accept and do it soon.
