The Business of Baseball
Tis the season.
When it comes to Major League Baseball (MLB), we are at the time of year when the weather is cooler and the Hot Stove is on fire.
For those who are not familiar with baseball, obviously this is not a Winter sport. The Hot Stove is the rumor mill that heats up as general managers look to build their rosters for the upcoming season. This includes trades and, more importantly, free agency. Players who are eligible can sign with any team they want.
The prize catch this year is Shohei Otani, the dual threat of pitcher and hitter. It is something we have not seen at this level since Babe Ruth played a little less than a century ago.
He is going to command a record contract. It will top $500 million and could end up as high as $700 million according to some estimates.
This is the business of baseball.
Billionaires Paying Millionaires
Most of your major sports are insane money. The teams go for billions of dollars, with a record set for the sale of the Washington Commanders ($6 billion).
Television contracts also reach the same number of figures. Today, this not only includes broadcast networks but also the likes of Amazon and )Apple. Obviously these companies have a ton of money to toss around. This only feeds the tough even more.
It all flows downhill. During this time of year, the player in MLB cash in. They receive lucrative contracts, setting them up for life.
Make no mistake, this is a business. The only ones without a financial interest are the fans, who root for their teams. However, their wishes are trumped by the finances of the owners and players.
Front And Back Of Jerseys
Everyone has a concern.
For the owners, and those who are employed, their concern is the front of the jersey. They want to put the product on the field that is the most attractive to the fans.
As for the players, it is the back of the jersey they are concerned about. This is serious business with a lot on the line. Players ultimately have to take care of themselves since the owners are going to try and lowball all they can.
Of course, the money really escalates the higher up on the chain one is. For a guy like Otani, the bidding includes the teams with the most money. He is not going to a small market team. Rumors are that the bidding includes the Angels, Dodgers, and the Blue Jays who are own by Rogers Communications.
Otani is not the only big name who is looking to get paid. There will be many billions in contracts handed out this Winter. For those who like watching business in action, this is the most active time of the year.
Games Are Business
Entertainment, in all its forms, is huge money.
This is something that is vital for everyone to remember. Professional sports bring in billions each year. The NFL has revenues around $20 billion. MLB and the NBA come in around $10B annually. EPL pulls down over $5 billion each year.
People think sports is a game. It is not. Even at the college level, basketball and football are major revenue generators. Now athletes are getting paid by companies for their likeness.
For Major League Baseball, tis the season for contracts that enter into the hundreds of millions of dollars.
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That’s crazy lol I wonder if the viewership of baseball even commands that kind of money need? Hard to think that it could but I guess if they are shelling out that kind of cash it must be. I’m so out of tune with baseball these days I don’t know any of the players.
It doesnt matter. With the likes of Apple and Amazon getting involved, they have different ways to monetize. The owners are going to benefit. It will kill outfits like ESPN and perhaps the broadcast channels sports divisions.
I really like how you talked about the money part of Major League Baseball during the Hot Stove season. The part about Shohei Otani and the chance of him getting a record-breaking contract makes it even more interesting.
hit that ball!
Till now I have heard about baseball but didn't really know how it is been played actually l. I will learn to play the sport