Minor League Baseball Teams in Danger of Economic Disaster Following Coronavirus Shutdown
Businesses large and small around the world are dealing with massive shortfalls in revenue due to the shutdowns brought about by COVID-19. Baseball is no exception, with the chances of a season being played look less and less likely with each passing day -- and the minor leagues are getting hit especially hard.
The hopeful plan is for MLB teams to be in one location and play out an entire season. That is too difficult logistically and just would not work for the bulk of minor league games. In fact, it's worth wondering if baseball in the lower levels of the professional game will be able to happen at all.
Two things have become more clear.
— Baseball America (@BaseballAmerica) April 16, 2020
1) It's growing more unlikely there will be a MiLB season in 2020
2) Many MiLB teams are staring at a bleak economic outlook for 2021, too. https://t.co/SP9TwyZZx7
Having this season entirely cancelled would essentially mean the money made from sponsorship and ticket sales in 2020 would be rolled over to 2021; that means taking in one year's worth of revenue over two years, which simply won't be feasible for a significant number of teams.
The average Minor League Baseball team has about 21 employees, who are compensated $62,000 a year -- including benefits.
— Jared Diamond (@jareddiamond) April 9, 2020
This data, never before public, proves a point: MiLB is small business. And some teams say 2020 might force them to fold entirely.https://t.co/JH7PfwSbHG
Even if a season was played, doing so in front of no fans would take gate revenue off the table. MLB teams can at least make money off local and national television deals, but that is not the case for teams in the minors that rely on big weekend crowds and wild promotional nights just to stay solvent.
Like any other business, being closed for a full year could mean going under and never coming back at all.
Teams around the country will have to rely on their fans and municipalities to find some way to stick around until all of this is finally over; either that, or the MLB and its owners can step in and provide some sort of bailout. As difficult as that would be to arrange, it may be the only way for MiLB to go back to some semblance of normalcy when fans can finally return to stadiums and games can be played.