Is it October Yet?

The Major League regular season is coming to an end, and I could not image a more unexciting conclusion for such a great sport. With less than two weeks left on the schedule, seven of eight playoffs races have all but been settled.

Can you wake me up in October?!

There are few compelling reasons for a casual fan to attend an MLB game until the post-season. The lack of a pennant race will make it difficult for teams to generate ticket and game-day revenue. Hell, the NFL is struggling to sell tickets, what chance do the Marlins have to draw a crowd?

This past off-season was a changing of the guard in the way that owners approach free agents. The baseball’s years of annual revenue growth are over for the near future. However, there is some good, and some bad, news about the current state of Major League Baseball.

The Good News:

MLB ticket sales have only decreased 6% over last year; this is much lower than was expected. In the off-season where economic concerns forced established players to swallow their pride, and accept (seemingly) below market value contracts.  Owners were preparing for a much more significant drop-off in attendance.  The 6% decrease should be viewed as a mild victory because it proves that fans will continue to support their teams, in good times or bad.

The Bad News:

Operating margins will decrease as teams adjust ticket price, and promotion, to keep fans in the stands.  Teams have developed creative ways to extend value to their fans at the expense of their profits.  Lowering ticket prices, offering All-You-Can-Eat tickets, and introducing new attractions are all ways teams have kept ticket volume up.

The 2008-2009 off-season officially ushered in a new era of the game that emphasizes the value of defense and younger players.  As we move towards the 2009-2010 off-season, you can expect more frugality as teams prepare for economic uncertainty.  The conclusion of the regular season may be anti-climatic, but get ready to an exciting off-season.