MLB continues to have a problematic relationship with television. In fact, all of its recent economic problems can be linked to its television “problem.” The refusal of MLB owners to more equitably share television revenue has led to considerable economic imbalance among teams.
Baseball has long been considered a poor television sport due to the large amount of product (2,430 regular season games), the pace of the game, and a large playing field that is not “television friendly.” Finally, MLB is generally regarded as having done a poor job in marketing its product (Berkowitz & Zipay, 1996).
The problems of baseball culminated in the player’s strike of 1994-95 that led to the cancellation of the 1994 post-season, a shortened 1995 regular season, and the end of The Baseball Network partnership with ABC and NBC (Koenig, 1996).
Despite MLB’s ongoing labor and television problems, it offers one of the better examples of the ability of sports entities to maximize revenues in a changing television environment. Beginning with the 1996 season, MLB receives approximately $1.7 billion over five years from Fox, NBC, ESPN, and Prime Liberty (i.e., Fox Sports).
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This is an increase of almost $4 million per team per year from the previous TBN and ESPN deals (Koenig, 1996; Wendel, 1996). Of particular importance is the presence of Fox as a television partner. Fox’s willingness to pay a premium price for MLB is related to its continuing emphasis on sports product as the key element in its domestic and international growth.
MLB officials are increasingly committed to enhanced marketing and increased globalization as key elements in the game’s revival.
Although not as well positioned as the NBA in developing an international audience, MLB is regarded as having good opportunities in Asia and Latin America (Helitzer, 1996; Sands & Gammons, 1993). In order to create more saleable product, MLB has instituted a new round of playoff games and instituted interleague play (Williams, 1996).
Although MLB has yet to overcome its television “problem, ” it clearly is working hard to do so and to figure out the best blend of international, national, regional, and local television coverage.
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The presence of such major media powers as Disney, Time Warner Turner, and the Tribune Company as team owners is another example of baseball’s perceived value as television product (Lait & Hernandez, 1995).