If 30 widget companies are competing, it is reasonable for each to hope to achieve lasting dominance, and to hope to reduce many competitors to anemia, even extinction. But 30 baseball teams, associated for the purpose of producing, day in and day out, balanced competition, must evolve mechanisms for insuring 30 healthy competitors. Some people say baseball can solve its problems simply by increasing its revenues. Those people misunderstand the perverse dynamic of baseball's prosperity. Baseball's gross revenues almost doubled between 1995 and 1999.
Some people say the appreciation of franchise values confirms baseball's economic health.
The substantial appreciation of the four other teams was caused by actual or planned new ballparks. However, the Panel was not unmindful of feasibility considerations arising from the fact that some changes recommended are collective bargaining issues. Just as our report challenges on owners to think anew, so, too, does it challenge the Players Association to avoid sterile strategies and stereotypes. Certainly the Panel believes its recommendations would result in redistribution of revenues. However, the Panel is agnostic regarding the effect on total spending on players.