Tag Archives: Major League Baseball

The Yankee’s ROI

Baseball is my favorite sport.  And I am becoming increasingly convinced that money makes the world go round.  So it would make sense that I was drawn to a CNNMoney article about how the Yankee’s were the most effecient team with their money this year.

Photo Courtesy of The Daily Mail

According to the article, the Yanks had a net income of $69 million (this is only after paying player’s salaries and the luxary tax, however).  The payroll efficiency metric used in the article claimed that the Yankees paid $3.2 million per marginal victory, defined as every victory after the 49th. Next in line were the Red Sox, with $5.2 million per marginal victory.

I would be intrigued to find out how much the post-season games helped with this statistic.  It certainly would have helped the Red Sox with their ROI.  Because the more games you play, the less per game you’re going to pay.  I think a better measure might be just regular season games.

Although its intrigueing to see how the merging of efficiency and effectiveness works.  Earlier this year, my management professor used the example of the Denver Broncos as an example of both.  The team was efficient under its original owners, who solicited donations for everything and tried to put as little money as possible into the team.  They lost a lot and weren’t generating any income.  New owners took over, pouring money into the team. The Broncos started winning, generating money for the owners, so they were effective, but far from efficient.  This was supposed to drive home the point that its best to be both effective and efficient, but if you can only be one, it better be effective.

It’s hard to believe that the team with the largest payroll can still be the most efficient.  It certainly undermines the point made by the book Moneyball by Michael Lewis. But then again, it all just proves the point: money makes the world go round.

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Some interesting baseball-related news

Photo Courtesy of Sports Illustrated

Photo Courtesy of Sports Illustrated

– Most notably, Obama’s pick for the Supreme Court is Sonia Sotomayer, who, as Sports Illustrated points out, has dealt in the sports world. It’s kind of cool that that happens. She’s handed down decisions about MLB’s strike and the age-limit in the NFL.

– Those baby birds over in Memphis defaulted on their municipal bonds. It was mentioned in an article by Bloomberg and the St. Louis Post-Dispatch.

– The former International Bowling Museum and Hall of Fame is soon to be a Nike Store, according to the St. Louis Business Journal. Interesting transition, no?

– There’s potential that Jack Buck will have a highway named after him, according to the St. Louis Post-Dispatch.

Baseball Season!

Ok, so I’ve slacked off on my knowledge of the baseball world over the past couple of weeks.  But I’m back.

picture-3I’m really proud of my Cardinals, who are currently 18-9! I just hope I can afford to go see a game later this year. For the All-Star Game, they will be building a new baseball field for the Boys and Girls Club at the site of Sportsman’s Park, according to the St. Louis Post-Dispatch. That’s cool, and a neat piece of history for the kids.

Now they just need to hold steady. Good job to Colby Rasmus for his first Major League home run. The much-appreciated hit came, even if the team did end up losing the game.

In a concession to the economy, the Yankees have lowered ticket prices, according to the New York Times. They’re slashing some of the luxury seat prices in half. Of course, this doesn’t help me, but hey, its nice to see them become a least a little more affordable.

There are also several complaints about the new Citi Field, according to the New York Times. The tickets are too expensive, you can’t see in some seats, and there isn’t any history to the place. picture-4

Says the NYT article:

“Where, other fans complain, are the banners that used to hang inside Shea that could be seen from the escalators? (They were sold at auction.) What happened to the 1969 photo montage that adorned the outside of the right-field stands? (Gone like the stadium.) Where is the bronze statue of Mike Piazza hitting his famous home run in September 2001? (Not on the drawing board yet.)”

I think that that’s a shame, because history is one of the best parts of baseball, in my opinion.

There was also a very interesting story in the NYT about the baseball loyalties of the New York City Council members. I find the idea of pro-sport’s effects on politics very intrigueing. I believe that it was also something brought up when the Nationals came to Washington, D.C. But I don’t really notice a difference.

A baseball scandel that doesn’t have to do with steroids???

According to a NYT article, work on the two new stadiums in New York City was done by firms associated with the mob.  The demolition of the old Shea Station was done by Breeze National Inc., whose vice-president was convicted of bribary charges in 1988 and law enforcement has identified as being part of the mob.  The electric work done for the new Yakees Stadium was done by Petrocelli Electric, which is on the list of firms that New York City cautions against using.  The owner was indicted this month on charges for bribing an union leader.  Interesting, and a little refreshing, about how this isn’t related to steroids, isn’t it?

Photo courtesy of nytimes.com

Photo courtesy of nytimes.com

The Economic Impact of Baseball in a Down Economy

The St. Louis Business Journal just released an article that estimated the economic impact of the 2009 Cardinal’s season at $290 million dollars.  This was estimated by St. Louis Regional Chamber and Growth Association, where it was projected that there would be 3 million fans attending this baseball season.  Of course, it doesn’t hurt that the All-Star Game is in St. Louis this year either.  In addition to the All-Star Game, the Cardinals will be serving cheaper food and souvenirs.

Courtesy of stlcardinals.com

Courtesy of stlcardinals.com

This year, Major League Baseball is also launching a cable channel, called the MLB channel. According to MarketWatch, the channel will be free and provide “a highlight show of eight hours a night, as well as supply classic games and in-depth analysis.”

And who could forget about the two new stadiums populating New York’s skyline.  In the new Yankee Stadium, they\’ve brought back manually-operated scoreboards (something I personally miss in Bush Stadium). In a NYT article, they say “All in all, the new Yankee Stadium may be an austere, even intimidating place, but there’s nothing tacky about it. It’s straightforward, paint-by-numbers architecture.”

Courtesy of yankees.com

Courtesy of yankees.com

The same article says of Citi Field, “The casual mood (of Citi Field) is reinforced by a number of spaces that have little to do with watching a baseball game: an auditorium, a Wiffle ball field — even an event room for weddings or parties.”

Courtesy of mets.com

Courtesy of mets.com

So, how much money does this all add up too?  I don’t know, but I’d like too.