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    Will the Twins Be Helped By MLB and MLBPA’s Revised Television Deal?


    Cody Christie

    The team’s television issues have impacted Minnesota fans throughout the 2024 season. Will a revised plan for shared revenue from MLB help the Twins for this season and beyond?

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    Multiple outlets are reporting that MLB and the MLBPA have agreed to alter the collective bargaining agreement. Under the amended rules, teams who saw media revenue decline are eligible for what’s being called a “media disruption distribution.” Money will be pulled from the league’s portion of the competitive-balance tax revenues, collected from teams with the largest payrolls. Eligible teams with lost TV revenue will be eligible for up to $15 million each, with the league expected to cap payouts at a total of $75 million. It is a one-year deal, meant to serve as a bridge to help teams for the 2024 season.

    The union wrote a memo to players that justified the move. “We believe this agreement should positively affect the player market by softening the impact of revenue declines, by increasing the number of clubs who have monies to spend, and by undermining the ability of clubs to weaponize recent developments in RSN markets,” it reads, in part.

    So, which teams are eligible? According to reports, eligible teams are those “whose local media revenue declined from the year prior (2023) or from the two years prior (2022).” Many of these teams are associated with the regional sports networks associated with Diamond Sports (Bally-branded networks), or those under the Warner Brothers-Discovery umbrella. 

    The San Diego Padres and Arizona Diamondbacks were dropped by Diamond Sports last season, so they are two of the teams that will, apparently, benefit. The Twins were among a trio of teams (along with the Cleveland Guardians and Texas Rangers) that agreed to pay cuts on one-year deals with Diamond. The Colorado Rockies, Houston Astros, Seattle Mariners, and Pittsburgh Pirates were part of the Warner Brothers-Discovery group, making them eligible for this distribution, too.

    The MLBPA’s memo also said, “Under MLB’s proposal, the clubs that have been affected by declining local media revenues caused by regional sports network (RSN) developments would benefit from this expanded flexibility. All clubs with declining local media revenue are eligible to receive monies from the fund, regardless of revenue sharing status, market size or payroll level.”

    From the Twins’ perspective, there are no guarantees the increased revenue will be spent on the current roster. Minnesota’s ownership group slashed payroll by $30 million this winter while blaming the team’s expiring television deal. Eventually, the Twins took a one-year deal to return to Diamond Sports because it brought in an estimated $40-45 million. Instead of reinvesting a portion of that income on the roster, ownership seems to have pocketed that money. A similar path could be followed with this new “media disruption distribution,” because MLB can’t force teams to spend money in the middle of the season.

    Next week’s trade deadline got an added level of intrigue with the new television news. Rumors have swirled that the Twins might be interested in adding a starting pitcher on an expiring contract, something this front office has previously avoided. Minnesota might also be right up against their payroll threshold, and this revenue influx might allow the team to add a player with a higher salary, since the team would only be on the hook for a small portion of their overall deal.

    Regional sports networks are disappearing, so it's good to see that MLB and the MLBPA were able to find a solution for the 2024 season. There is a chance some of these issues will resurface next season, and then the two sides must decide on a long-term path to address the difficulties surrounding the television and streaming landscape.


    What are your thoughts on this change to the CBA? Do the Twins have room to add a player with a higher salary at the trade deadline? Leave a comment and start the discussion.

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    3 minutes ago, Major League Ready said:

    They have about $70M/yr invested in Correa/Lopez, and Buxton through the 2027 season.  Had they added another high-profile free agent they would have had in the neighborhood of $100M in four players.   That's just not a good position to be in.  

    It's going to be almost impossible to sign someone to any kind of big dollar or even mid dollar deal, either as a FA or their own guys given that, and their budget. It's why I think they won't deal for a controllable SP this year, they have Festa, Morris, and Matthews on the brink. Plus Paddock. And Varland. 

    "Eventually, the Twins took a one-year deal to return to Diamond Sports because it brought in an estimated $40-45 million." Try $46.8m, plus the limited media MLB rights pool the CBA negotiated. The Twins spend a few year trying to convince the fans that the RSN revenue was about $43m when it was actually just under $56m, so I wouldn't trust them if they told us what the compensatory amount was.

    12 hours ago, chpettit19 said:

    Players already get playoff bonuses. It's part of the CBA. Players get a cut of playoff revenue.

    Yes, but if its “used to boost performance “…. Potentially, ownership could be creative on how they use it. 

    8 hours ago, Major League Ready said:

    They have about $70M/yr invested in Correa/Lopez, and Buxton through the 2027 season.  Had they added another high-profile free agent they would have had in the neighborhood of $100M in four players.   That's just not a good position to be in.  

    There are no guarantees in life but $30M generally brings you a good player. And 4 good players on your roster before you start factoring in your low-cost players is a good position to be in.  The $100M is a privilege to pay.

    Oscar Wilde said that a cynic is one who knows the price of everything and the value of nothing.*  The value of having good players is high.

    * In fairness, this is only half of a dialog attributed to Wilde that was also aiming to make an equal and opposite point about knowing the price of nothing and assigning absurdly high value to too many things.  Real wisdom is finding the middle path between cynicism and sentimentalism.

    9 hours ago, ashbury said:

    There are no guarantees in life but $30M generally brings you a good player. And 4 good players on your roster before you start factoring in your low-cost players is a good position to be in.  The $100M is a privilege to pay.

    Oscar Wilde said that a cynic is one who knows the price of everything and the value of nothing.*  The value of having good players is high.

    * In fairness, this is only half of a dialog attributed to Wilde that was also aiming to make an equal and opposite point about knowing the price of nothing and assigning absurdly high value to too many things.  Real wisdom is finding the middle path between cynicism and sentimentalism.

    Can you come up with a single example (even 1) of a 90-win team in the bottom half of revenue that spent $100M on 4 players?  

    The last team in the bottom half of revenue to win the WS was the 2015 Royals.  They spent $41M on their top 4 players.  There have been 3 other teams in the bottom half of revenue that have made it to the WS in the past 10 years.  The 23 Dbacks spent $34M on their top 4 players.   The 20 Rays spent $37M and the 2016 Guardians spent $28M. 

    The best team so far this year would be the Orioles who are spending $45M on their 4 most expensive players.  The top 2 position players rank 5th and 12th in terms of WAR among position players.  The top 2 pitchers rank 1st and 8th in WAR among pitchers.

    Show us some evidence that spending $100M on four players is a good position to be in.  If you are correct, there should be plenty of examples you can use to illustrate your position.

    10 hours ago, Major League Ready said:

    Can you come up with a single example (even 1) of a 90-win team in the bottom half of revenue that spent $100M on 4 players?  

    The last team in the bottom half of revenue to win the WS was the 2015 Royals.  They spent $41M on their top 4 players.  There have been 3 other teams in the bottom half of revenue that have made it to the WS in the past 10 years.  The 23 Dbacks spent $34M on their top 4 players.   The 20 Rays spent $37M and the 2016 Guardians spent $28M. 

    The best team so far this year would be the Orioles who are spending $45M on their 4 most expensive players.  The top 2 position players rank 5th and 12th in terms of WAR among position players.  The top 2 pitchers rank 1st and 8th in WAR among pitchers.

    Show us some evidence that spending $100M on four players is a good position to be in.  If you are correct, there should be plenty of examples you can use to illustrate your position.

    Well every once in a while it works. See Texas Rangers last year. Of course it helps to have that second hundred million to spend.  

    Didn’t see the low revenue portion but the 4 player, for 100m and half he budget is difficult to prove 

    13 hours ago, Major League Ready said:

     bottom half of revenue

    Sorry.  I don't accept the terms of discussion you stipulate.   Revenue is not the independent variable.  On the contrary, it's an embarrassment that the Twins' revenue is lower than the Cardinals', despite having a larger economic base; it speaks to decades of failure going back to Calvin Griffith and would take many years at minimum to turn around.  The Twins should also be on a par in revenue with the Mariners but they are not.

    More importantly though, owning a sports franchise is nothing like running a chain of dry cleaning stores or even a health care behemoth.  There is no rule except a corrupt handshake deal among 30 billionaires that profitability is inviolable.  The competition is on the field, not among 30 CFOs.

    You've bought into bean-counting as a competitive sport.  Most of us do not.

    For these reasons I'm not playing along with your rhetorical games.

    PS. The Forbes franchise value page seems to have Minnesota ranked #16, so while that's technically "bottom half" it's pretty disingenuous to limit the discussion to teams below them. So even if I did want to play along, the discussion's rigged before it starts.

    11 hours ago, ashbury said:

    Sorry.  I don't accept the terms of discussion you stipulate.   Revenue is not the independent variable.  On the contrary, it's an embarrassment that the Twins' revenue is lower than the Cardinals', despite having a larger economic base; it speaks to decades of failure going back to Calvin Griffith and would take many years at minimum to turn around.  The Twins should also be on a par in revenue with the Mariners but they are not.

    More importantly though, owning a sports franchise is nothing like running a chain of dry cleaning stores or even a health care behemoth.  There is no rule except a corrupt handshake deal among 30 billionaires that profitability is inviolable.  The competition is on the field, not among 30 CFOs.

    You've bought into bean-counting as a competitive sport.  Most of us do not.

    For these reasons I'm not playing along with your rhetorical games.

    PS. The Forbes franchise value page seems to have Minnesota ranked #16, so while that's technically "bottom half" it's pretty disingenuous to limit the discussion to teams below them. So even if I did want to play along, the discussion's rigged before it starts.

    Saying that you have not bought into bean counting as a sport and critiquing the Twins revenue are incongruous statements. 

    The base level of baseball is no different than any other business in that some years you don’t make as much money but in general the business can’t bleed money. 

    11 hours ago, ashbury said:

    Sorry.  I don't accept the terms of discussion you stipulate.   Revenue is not the independent variable.  On the contrary, it's an embarrassment that the Twins' revenue is lower than the Cardinals', despite having a larger economic base; it speaks to decades of failure going back to Calvin Griffith and would take many years at minimum to turn around.  The Twins should also be on a par in revenue with the Mariners but they are not.

    More importantly though, owning a sports franchise is nothing like running a chain of dry cleaning stores or even a health care behemoth.  There is no rule except a corrupt handshake deal among 30 billionaires that profitability is inviolable.  The competition is on the field, not among 30 CFOs.

    You've bought into bean-counting as a competitive sport.  Most of us do not.

    For these reasons I'm not playing along with your rhetorical games.

    PS. The Forbes franchise value page seems to have Minnesota ranked #16, so while that's technically "bottom half" it's pretty disingenuous to limit the discussion to teams below them. So even if I did want to play along, the discussion's rigged before it starts.

    I agree they should be able to generate more revenue.  That however is a different discussion, and it does not change my desire to have them follow strategies that are the most likely to succeed.  We can complain about revenue all we like.  They still have $100M or $200M or $300M less than the top 1/3 of the league.  That's our reality.  Do you want to pursue strategies that are effective for teams with that economic reality, or do you want to follow strategies that have literally never been effective for teams with this economic reality?  Be mad they are not generating revenue but don't be mad they are not following a strategy that has an exceptionally low probability of success?

     

    4 hours ago, old nurse said:

    Saying that you have not bought into bean counting as a sport and critiquing the Twins revenue are incongruous statements. 

    The base level of baseball is no different than any other business in that some years you don’t make as much money but in general the business can’t bleed money. 

    I don't buy into sports teams never losing money, no.

    It's a vanity project. As I said, it's fundamentally unlike running a chain of dry cleaners. Take the America's Cup, for example. Some of the richest men in history have spent hundreds of millions of dollars in an attempt to own it..They don't demand that a fast sailing boat turn a profit. Horseracing, similarly; some racing stables are self-sustaining, many are not. There's no reason except a scoundrel's handshake among 30 billionaires that each individual baseball team must make a profit every single year, either. Once you get over that artificial hurdle, my point of view is clear and consistent. Owning a sports team is a privilege, not necessarily a profit-center.

    My point of view is not very important, because of exactly that agreement among billionaires; the Pohlad family is hardly alone in this (though there are occasional exceptions like the Tigers for a while and the Padres recently). So I'm not holding my breath. But there is absolutely no reason a team like the Twins, who have a good if not stellar farm system, can't choose to pay 4 key players a total of $100M, as was suggested further up, to supplement their roster of rising players. Throwing out challenges to compare to low-revenue teams is what's incongruous, for the several reasons I stated.

     

    6 hours ago, ashbury said:

    I don't buy into sports teams never losing money, no.

    It's a vanity project. As I said, it's fundamentally unlike running a chain of dry cleaners. Take the America's Cup, for example. Some of the richest men in history have spent hundreds of millions of dollars in an attempt to own it..They don't demand that a fast sailing boat turn a profit. Horseracing, similarly; some racing stables are self-sustaining, many are not. There's no reason except a scoundrel's handshake among 30 billionaires that each individual baseball team must make a profit every single year, either. Once you get over that artificial hurdle, my point of view is clear and consistent. Owning a sports team is a privilege, not necessarily a profit-center.

    My point of view is not very important, because of exactly that agreement among billionaires; the Pohlad family is hardly alone in this (though there are occasional exceptions like the Tigers for a while and the Padres recently). So I'm not holding my breath. But there is absolutely no reason a team like the Twins, who have a good if not stellar farm system, can't choose to pay 4 key players a total of $100M, as was suggested further up, to supplement their roster of rising players. Throwing out challenges to compare to low-revenue teams is what's incongruous, for the several reasons I stated.

     

    You bring in horse racing and America’s Cu which have absolutely nothing in common with baseball to make a point. You use dry cleaning business to compare to baseball.. what else do you have in your basket of fruit?

    9 minutes ago, old nurse said:

    You bring in horse racing and America’s Cu which have absolutely nothing in common with baseball to make a point. You use dry cleaning business to compare to baseball.. what else do you have in your basket of fruit?

    I don't know. How much more do you wish your perspective broadened?

    You tell me. Why is winning the World Series less desirable than the America's Cup or the Kentucky Derby?  Few can even tell you who won those latter two most recently anymore.  I'll give you my answer: billionaires are fickle, just like any human beings.  And we're being asked to take their eccentric choices as inviolable law handed down from on his. 

    Examine your assumptions.

    1 hour ago, Craig Arko said:

    Remains to be seen. Also on what one chooses to define as ‘help.’

    Just copying the title and trying to redirect the conversation back to how that money might make a difference.




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