One of
baseball’s biggest challenges over the years has been protecting competitive
parity. As early as the 1880s, teams centered in larger markets (especially the
east coast) were advantaged with more fans and better revenue (well, depending
on how many other teams were around).
It’s easy
for a fan to forget about what baseball is about. As with all things, it’s
about money! I don’t say that pessimistically, and this isn’t a social
commentary. Money is just a convenient tool for valuating all things in life—it’s
not a materialistic thing. It’s a good measure to help us make good decisions,
and it makes everything cheaper. But fans watching baseball are looking for any
number of different non-money rewards. Maybe they want to see their team win,
maybe they want to see a sweet changeup, maybe they want to see a circus catch
in right field.
Well, most
fans haven’t spent millions of dollars (or, in the case of the Dodgers, two billion dollars) buying a team. And
at the end of the day, we shouldn’t expect baseball franchise owners to spend
out of pocket to make a team viable, unless it’s a good long-term investment.
Owners want to make money, and that’s OK. Now, fortunately, a lot of time that
doesn’t move their interests out of line with the fans’. Winning teams do tend to make more money, and in any
case, running a team well—that is, making cost-effective choices—should benefit
everyone.
The
problem is that a New York team will obviously be way more profitable than,
say, a Kansas City team. So an owner in Kansas City, if he wants to make money,
is probably going to have to spend a lot less on player contracts, recruitment,
development, and all the other things that make a team competitive. It’s a
problem, and Major League Baseball has instituted more than a few different
forms of revenue sharing over the years.
One of the
first, in place during the 1880s, was a simple gate receipt split. In other
words, when a game was played, the ticket sales were split between the home and
visiting teams.
Ok, so
keep that in mind for a moment while I tell you about the Detroit Wolverines.
They played the first major league baseball game in Detroit in 1881, and were
owned by a fellow named Frederick Kimball Stearns as of 1885 (it’s fortunate
that they had some new management, because the 18 runs surrendered in a single inning to the Chicago White
Stockings in 1883 still stands as the worst pummeling in one frame, ever).
Stearns
was a man with a plan. It wasn’t a complicated plan, but those Dodgers I just
mentioned are using the same one today: Spend, spend, spend. Stearns was able
to take advantage of the relative fragility of early baseball, though, so
rather than just shelling out for big contracts, he bought the entire Buffalo
Bisons franchise—just to get at their
stars.
The result
was a very expensive, very good, Wolverines team. But other owners in the
league had a plan. Remember the revenue sharing plan under which gate receipts
were split? Owners displeased with Stearns’s spending spree succeeded in
stymying him by capping the visiting team’s gate receipts revenue at $125 per
game. The Wolverines would bring their stars into town, and walk away with only
$125, while the home team collected the rest of the cut from all the fans who
came out to see the likes of Dan Brouthers, Jack Rowe, Hardy Richardson, and
Deacon White.
Detroit
had not yet become the Motor City—the Model T wouldn’t begin production until
1908, and there was no way Stearns could make the team sustainable without a
larger share of the gate receipts. He sold his big-name players away to other
teams.
Detroit
would go on to win the National League in 1887, and beat the St. Louis Browns
in a series of 15 exhibition games that was a precursor to the World Series
(not to be played until 1903). By 1889, though, the team was defunct, never to
be heard from again. Stearns’s dreams, as well as his wallet, had been
thwarted.
It’s a
fascinating story of baseball politics, and the same issues are totally
relevant even today. The administration is more elaborate, the rules are
stricter, and there’s more money at stake, but at the end of the day, it’s still
all about the money.
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