Baseball economics

Player salary has no causal relationship with ticket prices or taxpayer-funded stadiums. Every additional dollar a free agent gets essentially comes entirely out of the pockets of a much wealthier and more powerful owner. The fact that owners have set up players, agents, and the Player's Union as the bad guys is one of the most pernicious cons in sports. But I digress.

I have a hard time believing that there is not a direct relationship between the skyrocketing player payrolls and ever increasing ticket prices/demand for fan increasing new stadiums. I don't have great sympathy for the owners either. And I agree with you Oregon, better to spread that wealth into more pockets, and certainly more charities. However, there was something terribly wrong when Tony Gwynn took a few dollars less to remain loyal to San Diego- and got harrassed by the players union. That union played a part (granted the owners and the commissioner looked the other way when the fans showed up in record numbers) in perpetuating Steroid use by protecting that "right." The greed and lack of loyalty on display by todays players is not a good example for our children and culture. The bunt and moving runners over are greatly diminished because they don't pay off well statistically. Managers have less control over
spoiled players who make way more money than them- Manny Ramirez was only a more extreme example of behavior that is more prevalent as a result of lack of control. A brilliant professor I had from Oxford made a clear point that analysis of American culture is impossible without correlating Baseball, as it has foreshadowed many of the issues in our society. The message of today seems an increasing "me" generation.

So instead of the players, you want the owners to get richer?  The players don't set the ticket prices, nor are they the cause of them going up.  The owners set the prices as high as people are willing to pay.

Tonyc, unions are a different story all together and you're right it's BS when a union puts pressure on its members for making a healthy living in the place that makes them happy because they want the to "maximize salaries". As a basic concept it makes sense, but these guys aren't poor, in fact they are very wealthy so maximizing salary when it's not in that individual's best interest shouldn't be a priority to the union. The MLB players union is powerful and has done great things for the players historically, but it's not without its faults.

That's why there's a lawsuit about this right now.

When the timing is right, it's something I'm hoping to address on an upcoming podcast. Have at least one great guest who has agreed to come on to discuss the suit.

Thank you for the data Jmei, I stand corrected on ticket prices correlating with player salaries. Jimed, as I stated, I do not sympathize with the owners either. I am glad to see this lawsuit and also am grateful that some provision has been made for former players by major leaguers..it was shocking to hear that Gaylord Perry was broke and J.R. Richard was homeless before being found and assisted by a member of the Astros. Want to see more of this and generally more "paying it forward"- and there has been some good charity work no doubt- and loyalty from major leaguers.

I absolutely agree with the above. The salary spread should definitely be narrower. But for any individual player, he should definitely have the right to get his.

While this is true enough in modern day baseball...because of the varies revenue streams that teams have....it wasn't always the case.  And it's really naive to say that is has "no causal relationship with player salaries"...if an owner wanted to generate more revenue because his payroll is higher...one way is he can raise tickets prices.  Let's not kid ourselves here.

This is supply and demand 101. If the owner could raise prices and still sell out the stadium, he would have done so already. Prices are already set at the highest level the market can bear. Again, you have the causal relationship backwards. Salary levels are set by revenues, not the other way around.

This is true in theory, but definitely not true in reality. The Red Sox sold out Fenway for a decade, you think they couldn't have raised prices and still sold out? Prices are kept lower than they could be, probably to earn goodwill among fans to increase merchandise sales and TV revenue. If player salaries rose enough that they thought that raising ticket prices would hurt them less in terms of non-ticket revenue than putting out a worse team would, they could end up raising prices in response to ticket prices rising. Generally you're right though, demand drives ticket prices.

That's just it though JMEI. The MLBPA, as in all unions that are long standing begin with noble causes that fight the worthy cause and do outstanding things (and improvements) for the working stiff, but bloat themselves up so that they are delving into things (politics, lobbying on a mammoth scale for examples) that they have no business in after time.

I give My own Grandfather's case as a coal miner, who mined when there was company stores, and company money issued even.. Company housing.. Company thugs enforced the rules.. They tried to hire unions? Massacres followed at one time in western Virginia from striking miners (early 20's). After miners finally unionized, good things happened, company money was eventually abolished. His black lung (from decades of mining) was treated and paid for as a disability by the mines.. Forced by the union.. But the Unions never stop with good. They have to have a purpose to exist, like government in general, always writing laws, whether good or bad, it does not seem to matter.

MLBPA the same. At 1st, it was obvious (and simple) things like bullpen benches and the "right" to have a wife along on a road trip. Sounds like a basic thing does it not, or not, though it wasn't then. Same with organizations, such as LA/Bklny and the NYY buying up all the talent (amateur) and forcing a draft.

Same as other unions.. MLBPA can't get enough of itself, not even police itself with doping scandal and individual rights?!? As to why they wouldn't allow it 2 decades ago.

It will get worse in MLB, just hope the sport doesn't turn into the cesspool that is the NBA and NFL.

Agreed.  But sometimes there are people (King...Ghandi) or circumstances (revolutions) that create the change...only to see that change become standardized and it's meaning lost.  But in the context of the expanding universe....not of it really means much anyway.  Cue Bill and Ted's Excellent Adventure.