Baseball Musings: Squeezing Out Every Dollar

March 19, 2008

Squeezing Out Every Dollar

The Cape Cod League ran afoul of Major League Baseball:

The annual operating budget for the Cape Cod Baseball League is between $1.5 million and $2 million -- not much more than the yearly salary of a backup infielder in Major League Baseball.
Yet the volunteer-staffed Cape League and the multimillion dollar MLB are locked in a struggle over money in what could be labeled a David vs. Goliath battle, with the Cape League's $100,000 annual grant from MLB hanging in the balance.

According to Cape League sources, the six teams in the 10-team Cape League that share nicknames with major league franchises are facing a choice: Purchase all future uniforms and souvenir merchandise from more expensive MLB-licensed vendors or lose the annual grant.

MLB is also requesting an 11 percent royalty on sales next summer of existing inventory from the six affected Cape League teams. Non-clothing items such as coffee mugs and teddy bears that are not available through MLB vendors could no longer be sold.

I appreciate MLB wanting to protect their copyrights. Sometimes, however, they should start with the velvet glove rather than the iron fist. Otherwise, they piss off people with a national audience. For example, asking for a small royalty from sales and a slow change over to MLB approved merchandise probably would have worked with little resistance.

Along with the near Japan debacle today, it's amazing that the people running MLB grew this organization into a $6 billion business.

Posted by David Pinto at 02:47 PM | Mechandising | TrackBack (0)

Comments

As a proud Cape Codder and life long Yarmouth-Dennis Red Sox fan, I was stunned when I read about MLB's threats to sue the CCBL into the Stone Age. This is a league that prides itself on not charging admission and having its players work within the community. It sounds ridiculous, but the CCBL represents baseball in its purest form.

Posted by: Rusty at March 19, 2008 03:07 PM

Said much the same thing earlier today, David. If MLB put half the energy they devote to squeezing pennies into growing their industry intelligently, by making things better for fans, they'd be back in front of the NFL.

An observation related to the Longoria question (AAA or TBA) wouldn't be terrible for Tampa Bay if a weakened Red Sox or Yankee team was ripe for the taking, and the two wins Longoria accumulates in Durham in April are the difference...akin to the Gallardo/Braun minor league penny pinching that cost Milwaukee a divisional title

Posted by: Joe at March 19, 2008 03:13 PM

I played for the Harwich Mariners in 1975, 2 years befroe the seattle mariners came into existence. Why the hell should the Cape League have to change their name or pay for it?

Will Anheuser-Busch make Selig stop using the name "Bud"?

Posted by: rmt at March 19, 2008 03:43 PM

"...it's amazing that the people running MLB grew this organization into a $6 billion business."

I get the feeling that this growth was accomplished in spite of the people running MLB, not because of them.

Posted by: matthew at March 19, 2008 03:48 PM

MLB can protect its copyrights by licensing the names for a minimal fee and/or royalty. Once again, MLB is going around stomping on things that create interest in and affection for baseball, in an attempt to squeeze out an extra few nickels.

Posted by: Capybara at March 19, 2008 03:58 PM

Little League parents beware! MLB will be sending it's copyright-protecting lawyers to a cash-strapped league near you soon enough! Hide your Red Sox, Cubs, and Yankees!

Posted by: Derek at March 19, 2008 05:37 PM

It's funny how Gammons writes on his ESPN "blog" about what cheap money-grubbing a-holes they are at MLB because of the Cape Cod League shakedown...I'd love to read the rest of Gammons' points, except you have to pay to be an "ESPN Insider" to see it.

Peter Gammons, Hall of Fame hypocrite.

Posted by: John at March 19, 2008 06:28 PM

"...it's amazing that the people running MLB grew this organization into a $6 billion business."

Socialism, David. MLB's ridiculous anti-trust exemption allows them to operate with no competition. They've got a lock on the world's largest market for one of its most popular sports.

Posted by: WeWanttheFunk at March 19, 2008 06:58 PM

minor point here but this is more of a trademarks than copyright issue... thanks very much I'll get my coat...

Posted by: William D at March 19, 2008 09:03 PM

Perhaps the league can charge MLB scouts $ 100 per game (a scout licensing fee passed by town councils) until the $ 100,000 is made up?

Posted by: rmt at March 19, 2008 09:38 PM