From: kbanaian@bernard.pitzer.claremont.edu (King Banaian)
Subject: Re: Baseball finances query
Organization: Pitzer College
Date: Thu, 17 Dec 1992 19:53:20 GMT

In article <789@blue.cis.pitt.edu> genetic+@pitt.edu (Dr. Dave) writes:

>	1. What is the revenue-sharing cheme currently used for gate take
>	   and MLB merchandising revenue?  (E.g. is it 50/50, 60-home/
>	   40-visitor, or what?)
According to Gerald Scully, _The Business of Major League Baseball_ (U. 
Chicago Press, 1989), in the beginning in the NL "The visitor got 50% of the 
base price of a ticket but nothing of the revenues from a more expensive 
seat." (p. 17)  That would be those $3 GA seats in the outfield.  Thus they 
are paid a fixed amount per person passing through the turnstile.  I believe 
that the current payment is $.57 per head.  On an average ticket available 
price of $7.23 (provided to me by the Commisioner's office last spring) that 
gives a fractional rate of less than 8%.  I spoke a few years ago with Jack 
Tyson, ticket director for the Braves, who confirmed that 57 cent figure.  I 
have nothing in my clippings files that shows this changing.  The AL set up 
its own rules in 1901 (according to Harold Seymour's _Baseball:  The Golden 
Age_) to split ticket sales 80-20.  That continues to exist, confirmed by 
(among others) Tom Mee of the Twins.

Merchandise revenues I believe are evenly split.  I have no authoritative 
sources for that at this time.

>
>	2. What fraction (or total $) of baseball's annual revenue currently
>	   comes from local TV contracts?
>
Thought I'd bring out the numbers here.  These data were printed in the 7/2/
92 issue of _Financial World_.  They are for the 1991 season.
	Gate	Media	Stad.	Total	Player	Oper.	Oper.
Team	Rec.	Rev.	Rev.	Rev.	Costs	Exp.	Inc.
NYY    $19.4   $61.0   $ 7.4   $90.0   $29.8   $59.6   $30.4
LA	26.6	32.5	18.0	79.3	36.0	72.0	 7.3
NYM	22.9	50.0	16.0	91.1	35.2	70.4	20.7
Tor	44.5	30.0	12.0	88.7	29.7	62.4	26.3
Bos	24.5	40.5	14.3	81.5	35.4	70.8	10.7
Bal	19.0	24.4	 5.0	50.6	15.8	39.5	11.1
CWS	27.5	25.7	19.3	78.0	18.0	60.0	18.0
StL	19.9	25.0	12.0	59.1	23.2	46.4	12.7
ChC	22.8	27.5	12.0	64.5	29.0	58.0	 6.5
Tex	19.0	25.5	14.0	61.5	20.7	47.6	13.9
KC	16.9	20.5	14.0	53.6	30.4	60.8	-7.2
Phi	15.2	23.2	 7.6	48.2	21.7	43.4	 4.8
Oak	25.7	27.0	10.0	64.9	39.2	66.6	-1.7
Cal	19.0	27.9	 5.0	54.1	34.3	61.7	-7.6
SF	15.5	26.2	 5.0	48.9	33.3	53.3	-4.4
Cin	17.1	24.4	 5.3	49.0	27.1	48.8	 0.2
SD	15.6	23.1	 7.5	48.4	24.4	48.8	-0.4
Hou	10.6	25.2	 8.0	46.0	12.1	31.5	14.5
Pit	16.2	21.9	 5.5	45.8	24.9	49.8	-4.0
Det	15.6	28.8	 5.0	51.6	31.1	54.4	-2.8
Atl	15.4	18.9	 3.8	40.3	20.4	40.8	-0.5
Min	18.2	20.5	 3.2	44.1	24.1	48.2	-4.1
Sea	15.5	22.0	 5.0	44.7	17.4	41.8	 2.9
Cle	 9.5	23.7	 6.6	42.0	19.5	46.8	-4.8
Mil	14.2	19.4 	 3.0	38.8	26.4	50.2   -11.4
Mtl	10.7	23.5	 3.0	39.4	21.8	43.6	-4.2

Notes:
	--Gate receipts include home and away takes.
	--Media revenues include national (@$15.5 per team), local TV, cable 
and pay-per-view, and radio.
	--Stadium receipts include suites, concessions, parking, 
advertising, and souvenirs sold at the park.
	--Total revenues include other items (mostly licensing and 
merchandising).
	--Operating expenses include player costs, exclude 
depreciation and interest payments on debt.
	
Twelve teams show a loss out of the 26.  That's without the depreciation 
gimmickry that baseball is well known for.  Overall, the league's operating 
margin was 8.4% ($127 million).  Player costs were $680 million (a little 
over 45% of operating revenues).  So non-player expenses were booked at over 
46%.

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