Wednesday, December 3, 2014

MiLB and revenue sources - ex. Pensacola Blue Wahoo's

Here is a brief breakdown of how a Minor League Ball Club generates revenue.  Some of you may not understand how the Minor League business structure works, and I can't blame you.  To say it's a confusing set up would be an understatement.

As you all know, each MLB club has a farm system (usually consisting of a Low A, High A, AA, and AAA clubs)  and every player in that system is basically bought and paid for by the MLB club.  Travel, contracts, etc.  So naturally you'd think the MLB club owns the Minor League teams themselves...well you'd be wrong.  Each team is it's own business that has an agreement to "house" a minor league team.  They then use the team to sell tickets, merchandise, sponsorships, run local events, etc.  So if you ever wonder why tickets for a MiLB game is so low, it's because the parent club is fitting the bill for the players.  (note: this is a very simplified version how MiLB works)

Here's a video I put together explaining this:

And I can't talk about the Bayfront Stadium without a sneak peak inside:
If you're in the area I recommend checking out Bayfront Stadium and Maritime Park.  It's beautiful!

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