Television money draws a lot of attention when it comes to MLB’s finances, in part because the national revenues are easily identifiable. But the big driver of baseball revenue since the strike hasn’t been national television. Instead, local television deals and brand new stadiums with capacity for significantly more fans (and many highly priced tickets) have helped MLB revenues soar. Baseball’s national television deals have certainly gotten bigger, but getting fans to the ballpark has been more important to the bottom line over the last few decades. Baseball’s increasingly diverse streams of revenue have even reached to land deals surrounding ballparks, and helped create a financially strong industry in which one bad television deal won’t topple the sport and lead to a strike and lockout, as it did in 1994 (covered in Part I). However, MLB must be careful not to head back in that direction, and current trends are less than promising. In the second part of this series, we’ll look at how MLB has grown into an industry that generates nearly $11 billion per year in revenue, with a valuation above $50 billion.

While the 60s, 70s, or 80s (or whichever era you grew up in) were probably the halcyon days of the sport, you wouldn’t know by looking at attendance figures. In the 1980s, average attendance was roughly 22,000 fans per game and tickets were about six bucks a piece (around $14 after inflation). In today’s dollars, that’s roughly $25 million per team per year. Over the last decade, attendance is up to 30,000 per game, one-third more what it was in the 80s (a topic that is often overlooked when examining the health of the sport), and ticket prices have averaged around $29 per ticket in that time. For an average team, that’s $70 million per year, an 180% increase over the 1980s even after accounting for inflation. Even with that increase, gate receipts account for somewhere between 20% and 45% of revenue, depending on the team. Helping to fuel those increases, almost every major league team has received a brand new, publicly funded stadium to bring more fans to games at considerably higher prices. In the last 30 years, national television money has doubled after inflation, but gate money has grown nearly twice as fast.

Local television revenue has grown just as fast as gate revenues and provided teams with a windfall of cash over the past 20 years, necessitating revenue sharing as the disparity between the biggest and smallest baseball markets have grown. The massive cable television deals, coupled with notable failures in Houston and Los Angeles, have caused speculation about a cable bubble as carriers lose subscribers and become reticent to pay big per subscriber fees for niche channels. Read the rest of this entry »

When you think of Anthony Rendon, you probably think of consistency. He’s good every year, in roughly similar ways: he doesn’t strike out much, walks a good deal, hits his fair share of homers and doubles, and plays good defense. He’s been worth more than 4 WAR in every one of his full seasons. He’s a line drive hitter, a batting average machine. If anything, he’s become more consistent over time: in each of the last three years, he’s been worth between 6 and 7 WAR and struck out between 13% and 14% of the time.

I don’t buy it, though. Rendon might seem consistent on the surface, but under the hood, he’s completely revamped his game to unlock progressively more offensive potential. In fact, I can retell the Anthony Rendon story as a progressive improvement over time. Let’s try that now.

In 2015, the first year for which we have Statcast data, Rendon was hurt. He sprained his MCL in spring training, sprained his oblique while rehabbing the MCL, and somehow got forced off of third base — a year after a 6 WAR season — by Yunel Escobar. He played the majority of the season at second and scuffled.

That’s a low baseline, which makes any tale of improvement easier to tell. But let’s start there anyway. Rendon didn’t hit the ball with much authority that year — oblique strains aren’t good for power. When he put the ball in play, he generated a .343 wOBA, significantly below the league average of .361. Those numbers don’t really mean much out of context, so think of it this way: in 2019, Luis Arraez and Kolten Wong were below league average by roughly that amount. Read the rest of this entry »

When the Milwaukee Brewers needed a torrid run over the last month of their season in order to sneak into the playoffs, it was the pitching staff that stepped up and made it happen. During that stretch, perhaps nobody in the organization pitched better than Freddy Peralta. He threw 9.2 innings in relief during that month and allowed just two runs while striking out 20 batters and walking two. That works out to an ERA of 1.86 and a FIP of -0.30 — yes, a negative FIP. He made one dominant appearance after another, like when he struck out five in two shutout innings against the Cubs, or when he struck out four over two shutout innings against San Diego.

In September, he was one of the most overpowering relievers in baseball. In August? He got shelled so badly in six games that he was demoted to the minors for two weeks. This is the Freddy Peralta conundrum. And the Brewers are betting they can solve it.

According to Ken Rosenthal of The Athletic, the Brewers are expected to sign Peralta, 23, to a five-year contract extension, which would buy out his arbitration years and give the team a pair of club options on the back end. Read the rest of this entry »

His performance flew somewhat under the radar — that can happen when you play for a team that loses 108 games — but Trey Mancini had a fantastic 2019 season. Quietly crushing as one the game’s most-underrated hitters, the Baltimore Orioles outfielder/first baseman slashed .291/.364/.535, with 38 doubles and 35 home runs. Mancini’s 322 total bases were sixth most in the junior circuit, while his 132 wRC+ was higher than that of Nolan Arenado, Ronald Acuña Jr., Bryce Harper, and numerous other notables.

The 27-year-old University of Notre Dame product discussed his breakout, and his hitting approach as a whole, on the final weekend of his third full major league season.

———

David Laurila: You’ve obviously stepped up your game. What’s different this year?

Trey Mancini: “I think the biggest change, especially from the first half of [2018] to this year… I’d gotten to the point where I was almost obsessed with what I was doing mechanically. I’d become way too concerned with what was going on in my swing — where my hands were, and all that — and if you’re thinking about those things at the plate, the ball is going to be whizzing right by you. So I’ve pretty much eliminated any thought of the physical. Now it’s just pitch selection.”

Laurila: That said, hitters sometimes do need to make meaningful physical adjustments.

Mancini: “That’s what your offseason work is. If you’re working on any physical changes to your swing, it’s usually going to happen then. When you’re in the cage, even before a game, it kind of becomes subconscious. But again, once you’re up at the plate you have to eliminate any thought of what of you’re doing, and just compete. These guys are too good for you to be worried about what your swing is doing.”

Laurila: To what extent can a hitter make mechanical changes during the season? Read the rest of this entry »

When massive television dollars from broadcast giants ABC, CBS, and NBC stopped flowing directly into baseball owners’ pockets 25 years ago, the downturn in revenue helped to cause a strike that the sport took years to recover from. In the earlier part of this decade, a similar specter loomed in the form of a cable bubble, the bursting of which threatened to take away the millions that teams receive to broadcast local games on Regional Sports Networks (RSNs) like the Yankees’ YES Network or the Cardinals’ Fox Sports Midwest. Due to a diversification of revenue, an emphasis on developing streaming technology with a impact felt beyond the sport, and an increasing number of bidders, both traditional and non-traditional, that want to broadcast baseball games, Major League Baseball has been able to avoid a bubble similar to the one that severely damaged the sport 25 years ago. But, as exemplified by the recent Sinclair acquisitions of RSNs and the Blue Jays’ decision to remove Canadian access to their games on MLB.TV, a short-sighted approach could undo their victory in the long-term.

First, how we got here.

In 1988, CBS won the right to broadcast Major League Baseball’s marquee events, including the All-Star Game and World Series, beginning in the 1990 season. The network would spend $1.08 billion over the following four years for those games, reportedly beating the offers of rival networks ABC and NBC by as much as $400 million. While the deal was massive in its size, its importance was outweighed by a smaller but more significant deal signed the same year.

One concern with CBS’ new deal was the dramatic decrease in the number of regular season games broadcast nationally, moving from more than 30 games per season down to just 12 beginning in 1990. Commissioner Peter Ueberoth laughed off those concerns, noting teams’ ability to sell local broadcast rights. Around the same time as the CBS deal, the New York Yankees announced one such deal:

The prime example was the recent sale of television rights by the Yankees, who will collect $500 million over a 12-year period from the Madison Square Garden cable network for as many as 150 games a season by 1991. The 12 others are reserved for the national television package, now owned by CBS. The Yankees thereby became the first baseball team to award its local broadcast package entirely to cable television, which could set the pattern for other teams in the future.

Read the rest of this entry »

The 2019 Yankees won 103 regular season games despite receiving just three starts from Luis Severino. The 2020 Yankees will have to make do in an even more extreme fashion. On Tuesday, general manager Brian Cashman announced that doctors have recommended that the 26-year-old righty undergo Tommy John surgery; he will do so on Thursday. His injury further depletes a rotation that was already slated to start the season without either James Paxton or Domingo Germán, taking a bite out of the Yankees’ playoff hopes — though they’re still heavily favored to win the AL East.

More than anything, losing an electrifying two-time All-Star for a full season or perhaps even longer is just a bummer. Pitchers, man…

The latest turn in the ongoing Severino saga began last Thursday — coincidentally, the pitcher’s birthday — when the Yankees announced that he had been shut down due to forearm soreness, an issue that he’d first reported following his ALCS Game 3 start against the Astros last October but one the team believed to be transient. When Severino continued to experience soreness in the offseason before beginning his throwing program, the team had him travel to New York to undergo MRI and CT scans, neither of which revealed any significant problems. In the wake of last week’s shutdown — during which manager Aaron Boone revealed that Severino had a loose body in his elbow that had previously been asymptomatic — Severino underwent a dye contrast MRI, which revealed a partially torn ulnar collateral ligament as well as pain in the area. Thus, Severino will go under the knife of Dr. David Altchek at the Hospital for Special Surgery in New York. Read the rest of this entry »

Ben Lindbergh and Meg Rowley banter about the Astros confiscating signs at spring training and Madison Bumgarner’s rodeo alter ego, Mason Saunders, then preview the 2020 Athletics (13:58) with the San Francisco Chronicle’s Susan Slusser, and the 2020 Rockies (39:47) with The Athletic’s Nick Groke, plus a postscript on the implications of Luis Severino’s season-ending surgery (1:13:16).

Audio intro: Jonathan Coulton, "I’m a Mason Now"
Audio interstitial 1: Johnny Cash, "Wreck of the Old 97"
Audio interstitial 2: Willie Nelson and Ray Price, "This Cold War With You"
Audio outro: Porcupine Tree, "Sever Tomorrow"

Link to Morning Consult sign-stealing poll
Link to Mason Saunders story
Link to story on Monfort’s 94-wins quote
Link to Ben on spring training elbow injuries
Link to Astros response to cheating lawsuit
Link to order The MVP Machine

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I’d like to show you a graph. It’s not a surprising graph, nor a shocking one. Here’s the production on batted balls across all hitters in 2019, grouped by launch angle:

It’s not exactly rocket science. Hitting the ball straight down is death, hitting the ball straight up is just as bad, and most of the juice comes in line drives and fly balls that don’t approach popup status. There’s even a cute little dimple right around 15 degrees, where the ball has too much loft to be a flare but not enough that you’re all that likely to hit a home run. That all seems to make sense.

Next, let’s complicate it slightly. Here’s the same graph, only with batted balls hit less than 95 mph excluded: Read the rest of this entry »