Who Gets What From Postseason Ticket Revenue

Major League Baseball had several reasons for adding a second Wild Card this season. The reasons we heard most frequently were that the new format would keep more fans interested and excited down the stretch and that it would give an advantage to teams winning their division. The one we heard less frequently — but which was no less important — was that two more postseason games meant more money.

More money for whom?

MLB has very specific requirements for how postseason ticket revenue is divided among the league, the postseason teams, and the players. The framework is set out in the Major League Baseball Rules, an internal document that is not typically shared with the public. The Collective Bargaining Agreement between the owners and the Players Association adds an additional layer. If the Rules and the CBA disagree on any of these points, the language in the CBA controls. Maury Brown of the Biz of Baseball website obtained a copy of the MLB Rules in 2010 and published it on his site. Here’s the link. The Players Association website has a link to the CBA here.

First things first. What type of postseason revenue must teams share with each other, the league and the players? Ticket revenue. Under MLB Rule 26, “paid attendance receipts” is defined as the “total sum of gross receipts from tickets sold” to each postseason game, minus any admission tax, sales tax or use tax. Game-day concessions, merchandise and other non-ticket revenue are not included.

MLB Rule 45 gives the Commissioner’s Office 15% of the paid attendance receipts for all postseason games. The remaining 85% is divided as follows:

• Fifty percent of the paid attendance receipts from the Wild Card games is contributed to the Players Pool. (This provision was added in the new CBA.)

• Sixty percent of the paid attendance receipts from the first three games of the Division Series is contributed to the Players Pool.

• Sixty percent of the paid attendance receipts from the first four games of the Championship Series and the World Series is contributed to the Players Pool.

• All paid attendance receipts not paid to the Commissioner’s Office or contributed to the Players Pool is shared equally between the two teams in each Series or Wild Card game.