Key issues while the minor league baseball cancels officially the season 2020

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More coverage of the draft in the MLB to 2020 “Unlike the MLB, which has a revenue stream massive of its broadcast partners and digital, almost all of the revenue model of the minor league baseball revolves around the organization of the games to the fans. Even most of their business enterprise sponsorship and merchandising are based on this dynamic. The teams were rotated to create as many new sources of revenue as possible. A team has transformed its baseball stadium in Airbnb. Others have screened films in style drive-in.

Several organizations based in Texas have joined a summer league bat university, planning to organize these matches in front of the rallies with limited capacity. Although the full list of alternative sites for the teams of taxis MLB has not yet occurred, many of these sites will be those affiliated to close. While the teams of taxis will not participate in the games in front of the fans, the teams, the MLB will probably have to compensate the clubs in the minor leagues for the use of their facilities.

Yet, even if the minor league teams are scrambling to recover as much revenue as possible, the recipes will be invariably a drop in the bucket of the earnings of a normal season. Last week, fifteen teams of the minor leagues have filed a lawsuit in federal against five insurance companies, stating that “the action and inaction of the federal and state governments” have contributed to “financial loss catastrophic” for clubs to ball.

This means that some clubs in the lower levels of the minors, many of which have been mentioned in conjunction with the proposal for the contraction of the MLB and therefore lack of certainty about the future marketing efforts, will struggle to survive.

To compound the problem, the teams should contact the subscription holders and the business partners regarding the emergency plans for the funds already collected and, in most cases, already spent. The options could be to simply postpone the engagement on the next season or to convert expenditures to 2020 in gift cards, which would help the teams to preserve the cash flow. Invariably, like many industries beyond the baseball have experienced difficulties in recent months, some fans and companies will ask for refunds, and it is possible that a few teams short of cash do not have the necessary funds to do it.

All of this will be resolved in the coming weeks, now that the season is cancelled.

4. How this affects the negotiations for a new agreement of professional baseball?

The recent discussions between the MLB and MiLB have been sporadic, as the owners of the big leagues had to worry about their own season. These talks are scheduled to resume in earnest soon. When they do, the negotiators of the MLB will continue to know that many of the clubs minor league operate on a terrain precarious. This was true before the end of the season in the minor leagues, but now that this is the case, the worst-case scenario, MiLB has become a reality.

To put it succinctly: Almost all the owners of the minor leagues had to create a leverage effect to prevent contraction.

5. What it will look like the baseball minor leagues upon his return?

Prior to the pandemic, there was a public pressure and considerable political negotiators of the MLB to reach an agreement with the MiLB which does not involve contraction. Jobs could be lost. The economic activity could be reduced. But the coronavirus has been hijacked by the head of the politicians, who were concerned about similar issues on a much larger scale.

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Now, some of the clubs that would appear on the restricted list could close their doors, and the owners of MiLB everywhere are seeking a life raft that they can catch. Negotiators for MLB hold all the cards. His trump card is that if no agreement is reached, then MLB can just move away and create his own power system from scratch.

This is not likely to occur. Most of the time, it is because of the expense that would result from the implementation of a new system of minor leagues. New teams, new sites, new infrastructure and which would most likely be a series of litigation by the owners of MiLB and the municipalities of teams under contract. Of course, the dispute could occur anyway unless the MLB insists that this option is removed in the agreement PBA final.

The most likely outcome is that a new ABP will be agreed, and what will be the conditions of MLB. Given the terrain, the owners desperate to MiLB will see almost everything that is presented to them. So you can expect to see a reduced list of teams affiliated with the next season, a mix of affiliations and a restructuring of the leagues themselves, the clubs of the Major League seeking greater efficiency to the geographical location.

When the season of the minor leagues ended last summer, business was good, maybe as good as they had ever been. Most of the teams were profitable, with over 40 million fans who click the turnstiles at the parks of the minor leagues across the country. When we see the baseball affiliate at the level of the minor league, we don’t know exactly what it will look like the landscape. In fact, we don’t know if we will be able to recognize this landscape.

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