Results tagged ‘ DirecTV ’
Happy Valentine’s Baseball lovers. Tonight is the second half of the current season of “The Walking Dead” and while it is far from my type of entertainment, I’m personally all too familiar with the storylines because my wife like so many American’s finds it more interesting than politics, the news, or other more pressing subjects. So much of what is presented at least in the view of this writer is an overhyped and overblown focus on a postapocalyptical world where everything has been destroyed by some horrible event, be it man made or nature’s doing or some out of world alien/zombie created circumstance and the few survivors fight for what is left in a tribal like society.
What I present may seem a tad apocalyptical but based on past baseball history and current trends, it could become a stark reality that dramatically alters the sports and baseball landscape over the next 20-40 years. God willing, I’ll still be alive at age 82 in 2056 with spring training upon us, but will baseball look anything like it does today, will any major sports league? Below, I present some of the potential pitfalls that await MLB and its pro sports partners in the NFL, NBA and NHL, and the question is, what will they do to prepare for the end of the sports world as they know it?
Walkers are coming from all around to eat up the sports landscape. From the west, a group of walkers is carrying signs that state in very harsh language that government funding is dead, sports leagues must make it on their own. The owners are running in circles with no idea how to resolve this conflict. They don’t want to admit that society finally grew tired of their endless begging for corporate welfare, which asked for public money to build new stadiums and arenas to replace the ones that were built just 15-30 years ago. The last round of the sports building boom, everyone was told that to compete and field a winning team, the club had to have the latest, greatest state of the art facility. Build it, we win championships and contend every year for the opportunity to win more. Don’t build it, we leave. NO one stopped and realized, there are 30 teams in MLB, so if every team won just one single championship, it would take 30 years for every team to get its title, meaning it was nearly a stone cold lock that several MLB teams would not see a championship and might not even make it to the World Series during the same 30 year or shorter term for said stadium lease. The White Sox, Giants, Astros, Padres, Marlins, Rays, Athletics, Twins, Pirates, Mariners, all made the I’m leaving threat in baseball and the Expos eventually did leave. IN the NFL, the Rams have made good on the threat twice, the chargers and Raiders both could potentially join the Rams on that have done it twice list, while the Saints, Jaguars, Colts, Bills, Vikings, Seahawks, and buccaneers, have had or are currently making the same threat to government officials, while the Colts and Cardinals, and old Houston Oilers made good on the threat. IN the NBA, the Kings and Bucks are the latest teams to make the threat and get a new building, those two had brand new arenas in 1988, while the Hornets, Heat, and Magic which all got new buildings at the same time as new expansion teams all have since moved into new buildings that replaced those original new homes. The Grizzlies had a new home in 1995 and moved six years later, getting a second new building in 2004, while the Supersonics moved and became the Thunder in 2008. Similar arena threats were put out by the Rockets, Spurs, and pacers that got new buildings put up between 1999 and 2003, while other multiple sports cities, Dallas, Denver, and Chicago opened new facilities between 1994 and 2001. IN the case of Dallas, the new arena was replacing a building just 21 years of age that now no longer exists, Reunion Arena. Miami may be the most gross case here, because the new Miami arena that opened in 1988 was used to get both the expansion Heat in the NBA that year and the Panthers NHL team in 1993. It was built specifically for both sports. Yet by 1996 both teams were asking for new buildings, they each got one that they call home, the Panthers in 1998, the Heat a year later. The original Miami Arena was used sparingly until it was brought down less than 20 years before its first NBA game. Meanwhile, in the NHL, the Senators want a new arena, the current facility this 1992 Ottawa expansion franchise called home opened in 1996. The Red wings are getting a new building of their own, largely paid for by local public dollars in a city and state that is bleeding red ink, even though the owner could easily spend enough of his money to build the whole thing and still have billions left over. Talk about welfare, but of course when it is the owner of Little Caesar’s Pizza, the Tigers and Red Wings, that is somehow OK, but it is horrible when we give well fare to a 19 year old pregnant girl who is on her own with no family to turn too? Every arena used by NBA and NHL teams today not named Madison Square Garden and Oracle Arena is younger than Jennifer Hudson, younger than Yankees slugger Mark Teixeira. Remember the Warriors are getting a new building unless things fall apart in San Francisco, scheduled to open by 2018. Only six MLB stadiums are older, Wrigley which is getting remodeled, Fenway which has had upgrades, Kaufman which received a new round of upgrades on the public tab in 2006, Dodger Stadium and yes, that ballpark urrrr stadium in Oakland; Angel Stadium went through a pair of major upgrades, one to add football in 1979 and one to undo that change and update the baseball only feel in 1997. IN the NFL, the only older venues that predate Jennifer and Mark are Lambeau Field and Soldier Field (both which had a major makeover and upgrade in 2002-03), Arrowhead Stadium, Rich Stadium, that stadium again in Oakland, the temporary home the Rams are moving to at Los Angeles Coliseum which had no NFL team since the Raiders left in 1995, QUALCOMM Stadium in San Diego and the new Orleans Super Dome which has had its share of upgrades and repairs. The Falcons like several NBA teams got a new facility that opened the year Bill Clinton was elected to his first term in office, only to have it torn down potentially in the first year of another Clinton administration 25 years later in 2017. The Dolphins again as we point fingers at greater Miami moved to a facility built in 1987 for them and to get what would become the marlins. Almost immediately, the Marlins wanted out when it rained too much before baseball games to keep fans coming, hey Miami has always been that way, and now the Dolphins want upgrades or a new facility.
How do owners then fund new palaces to play in you ask? Well that depends on where else they can reach out with buckets in hand begging for private money to build the new stadiums. The public money is all gone, being used to build much more needed and much more outdated public works items such as electrical grids, water and sewer lines, replacing old gas pipes that keep exploding, and upgrading the telecommunications utilities. But there is another problem, walkers coming from the east, with signs featuring more stark language. Your cable TV money is gone, never to return. Here, we see another problem that takes us back in time while also developing on the horizon like a hurricane 1000 miles out in the Atlantic. We know damage could be done, we don’t know where or to what extent, but we know it is coming. IN this case, let’s think back to 1988 and the announcement that CBS had paid massive media rights fees to MLB. Teams were spending money on players left and right with this new found wealth of TV dollars. Yet in 1994, that CBS deal was gone and the new package was not nearly as lush with free greenbacks. Since MLB is not the treasury, it could not issue its own money and had to cut back. Baseball’s best season was ruined by a player strike, but the owners had just as much to do with it. Instead of using some of that TV money to build and update stadiums, owners bid against themselves and overpaid players, then begged for a salary cap to keep their fellow owners from spending too much on player contracts. We all know how that ended. But now fast forward to 2016, many teams have recently entered into or are just now starting new TV contracts with massive payouts from regional sports networks that are operated by and owned by divisions of the major cable and satellite TV companies. ESPN, Fox and TBS also are in the middle of huge contracts that pay very high rights fees to MLB through the 2021 season. But by 2021, it could be painfully apparent that baseball will need to come up with new revenue sources. The problem is simple, many people especially younger folks are ditching cable and satellite TV for on demand internet programming and who can blame them, a new trend known as chord cutting. Our own Time Warner bill has gone up almost 25 dollars in the last year, most of that in extra fees including a 6 dollar sports channel use fee. TWC and the other providers like Comcast, DirecTV and Dish will say that ESPN is to blame because of the high fees it demands for carriage over these systems. That has some truth to it, but look at how much money these same cable companies have sank into local TV rights contracts for teams in MLB< the NBA and NHL. The NFL largely dodges this issue because most of its games are still on over the air TV, something that is almost unheard of these days with the other leagues. This also does not even take into consideration the huge amount of money promised to college athletics, mainly in the form of NCAA football and men’s basketball at the division I level, viewed by many including myself as nothing more than university sponsored minor leagues. As more and more customers drop 180 to 200 dollar a month cable bills for on demand internet programs where they are purchasing only the programming they want to see, it forces the cable folks to raise rates. That bubble is about to pop like an overblown helium balloon and when it does pop, the sports leagues could find themselves being short changed because future promised dollars that were coming are suddenly now evaporating in the smoke and dust that is left behind by the burning down of the cable and satellite TV industry as we know it today.
Walkers are coming from the north and south too. From the north, they carry signs from entitled players who want even larger salary figures from owners who no longer have public welfare and no private money in hand to spend. The southern flank carry signs representing fans who are revolting against ticket prices that are increasing at many times the rate of working wages, fans who are tired of overpriced food and drinks provided by third party venders that do not follow food safety requirements in several instances. Minimum wage was $4.25 in 1993, it is now $7.25 in most locations. Yet $4.25 in 1992 will cost you more like $9 in today’s market for the same goods.
So the fans won’t buy tickets, the players are demanding money that is not there because the cable contracts are dead and worthless sheets of legal paper, while the government bonds have expired and no public official worth his or her weight in is coming through that door with as much as a dime of free goodies. This could happen and when it does, how do the pro leagues respond, and how does baseball in particular adapt to this very possible future reality?
I don’t have all of the solutions, but here are a couple. First, MLB should realize that the way fans are going to consume sports is changing and they will not be able to rely on passing this service fee on to the backs of many people who will never watch a game on television, much less attend a game in a stadium. MLB must come up with other revenue from the broadcast of game events. How you do this in part would be to make every single game you broadcast on TV and radio available worldwide to anyone online, no matter what. The audio service largely already accomplishes this and the MLBTV product should follow suit. Make that service available to any fan who wants to see any game, any team, anywhere. Already class action has forced MLB to sell an individual team package for out of market games, but this out of market concept is outdated and frankly it should have been terminated 15 years ago. MLB should have a very basic process here, no matter the fan, no matter where in the world you are geographically. Want to get the audio only package, sell it on a monthly or season long basis, sell it also on a per team or whole league type of package. So, I can get all MLB games for a month at a time, one team for the entire season, or all MLB games for the entire season. The same concept naturally would be true for those who upgrade to the video streaming service.
MLB should also hire broadcasters to cover games in other foreign languages. Many teams already have Spanish announcers, but hire a few MLB controlled broadcast teams who can do games in various popular languages around the world. While these announcers would not be able to cover all 2430 regular season games, they could cover 5-7 games a week, with all teams being offered throughout the season. Imagine if on any given day, you could find a couple games with an option in French, or German, or Chinese, Etc. These foreign language products would be streamed anywhere in the world, including to US based customers with a 30 day free intro to get fans interested. Teach them about the game if you will, then if they get hooked and fall in love, they can by a subscription. Similar audio broadcasts in various languages should also be made available via streaming services and if in languages that are in parts of the world with less internet traffic, dedicate a shortwave or related radio broadcast service specifically for this purpose.
Second, find ways to make the stadium into a year round money generating facility. Stadiums would become better public works investments if they were used more than 80 some odd times a season. MLB teams should find ways to book events at stadiums on all possible dates outside the baseball season and during the season, allow various events to take place at the facility on all dates not used for baseball, accept the day prior to a team returning home from a long road trip when the facility needs to be prepared for the next home games on the schedule. With more and more teams creating social zones in stadiums, those could all be rented out for big events and receptions on a very regular basis. I think the future here is interesting, as I could see a day where seats as we know it are no longer sold, with fans instead buying tickets to various zones within a ballpark and having areas to move around in, while using more restaurant style seating with tables and movable seating that allow for folks to face the field of play if using such setups on game days. Plus here is a big leap of Sheldon Cooper sarcasm, host more baseball games. Schedule the big state high school tournament during certain seasons at your stadium, bring college teams in on a regular basis for more than just the single weekend tournament and have events at the stadium on those open dates that are baseball related that get the community involved with one another. Have showcase events for international prospects, have baseball combine style events prior to the draft, and other events that promote baseball’s future talent, but do so in MLB stadiums where you can draw in MLB crowds. Imagine, you sell 30 thousand seats at 15 bucks a pop for any seat in the stadium and charge 5 dollars for parking, you know, minor league rates back in the day and you have made 450K just in ticket sales for that one event. For the stadiums as we know them to become true profit machines and thus to view them as investments or properties that have value, they must be living breathing spaces that are regularly active throughout the calendar year. We would never see funding for office buildings that were open only on Monday and Tuesday, or about 100 days in the year, which is even more than we see for actual game day events in MLB, even when postseason is accounted for. The numbers are certainly much worse in terms of usage dates for the NFL which has a max of about 12 in any given season, while the numbers for NHL and NBA arenas are about a max of 58 dates if a team played all the way to the finals, since no team plays the max 7 games in all four series. Even and arena that is home to both an NBA and NHL team gets a max of fewer than 120 usage dates during the year.
In conclusion, it is safe to say that things will probably not unfold in exactly the way that my imagination is presenting here. But the issues I have laid out on electronic paper here could very well take baseball and sports as we know it into new directions that require very difficult decisions and it will require creative solutions by power brokers who are used to getting everything the way they want it. All in the baseball and sports industry will need to be willing to make some real sacrifices and change how they think today, or risk forever destroying the very games we love in the future when resources have dried up and the league as currently funded becomes a bankrupt hulking mass of debt with empty decaying buildings that are home to no games, no fans, and no joy.