Following success of MLB's big-spenders, smaller market teams try to counter amid RSN uncertainty

 

[November 08, 2024]  SAN ANTONIO (AP) — A remarkable era of parity in Major League Baseball hit a bit of a snag this October when the big-spending New York Yankees, Los Angeles Dodgers and New York Mets finished as three of the top four teams in this year's postseason.

Sometimes, all that money really is an advantage.

Now it's time for the sport's middle-sized and small-market franchises to look for ways to counter during this offseason. Given several factors — particularly cash flow uncertainty due to the collapse of the regional sports network model — that could prove difficult.

“It's going to be a challenge for Major League Baseball leadership,” St. Louis Cardinals GM John Mozeliak said on Wednesday. “How do you remain with some level of competitive balance when there are so many teams that have so much higher revenues than the lower end?”

The fact that the Cardinals are worried about their financial future should be fairly alarming. This is a franchise that's been among baseball's most consistent over the past several decades, winning World Series titles in 2006 and 2011. They may not spend like the Dodgers, Yankees or Mets, but they've usually had reasonably deep pockets.

“We've always punched above our weight, so to speak,” Mozeliak said. “But now we're having the realization that we're going to be affected from our media package, our ticket sales, so our reality is changing.”

The Cardinals' dilemma is one shared by several other teams. MLB announced in October it will produce and distribute local broadcasts for the Cleveland Guardians, Milwaukee Brewers and Minnesota Twins next year. All three teams had contracts with Diamond Sports Group that expired at the end of the regular season.

The Texas Rangers, whose deal also expired last month, announced they will no longer be partnering with Diamond. They are assessing their options for next season.

The addition of the Guardians, Brewers and Twins means MLB will be handling the production and distribution of at least six teams going into 2025. The Arizona Diamondbacks, Colorado Rockies and San Diego Padres were the first three to make the switch.

MLB could be taking over more teams as Diamond continues to go through bankruptcy proceedings.

The Cardinals reached a new media rights on Thursday, though financial terms were not disclosed. They are one of five teams that are part owners of their regional sports network, along with the Cincinnati Reds, Kansas City Royals, Los Angeles Angels and Miami Marlins. The stations are FanDuel Sports Network affiliates after Diamond reached a naming rights deal with FanDuel last month.

MLB Commissioner Rob Manfred has remained bullish about the long-term financial prospects of all 30 teams, but has also acknowledged that there might be some short-term pain as the transition continues.

D-backs general manager Mike Hazen has always believed that a lower payroll is no excuse for poor performance. Arizona advanced to the World Series in 2023 despite having ranked No. 21 in the league in that category.

The team spent more last offseason thanks to postseason revenue, rising to the middle of the MLB pack. He said his team is ready to be active in free agency once again, even if he conceded that there are challenges.

“Obviously, it builds in some sort of uncertainty for us, but we get with (ownership) and figure out what we have to spend, what we can add and then we act accordingly,” Hazen said.

The Mets ($332 million), Yankees ($311 million) and Dodgers ($266 million) had the top three payrolls in baseball last season, though those numbers will change slightly this winter when bonuses are calculated. The Guardians ranked No. 23 at $109 million. Unlike the NFL, NBA and NHL, baseball does not have a salary cap.

As the Guardians showed, it's not impossible to go deep into the playoffs with a modest payroll. But it's not easy and it's not getting any easier.

“You have to scratch and claw and match up and make moves, take shots and hope that it works,” Guardians manager Stephen Vogt said last month. “Whereas for the other three teams, for the majorities, they set their lineup and go play.”

Not everyone believes that MLB teams are suffering much financial hardship. Baseball super agent Scott Boras called the regional sports network uncertainty “last year's news” and doesn't believe it will have much affect on the free agent market this winter.

“Clubs have been offered contracts from RSNs and they've rejected them, they're building their own platforms, they're using different methods for streaming,” Boras said. "You've seen it with Texas, Milwaukee. They're offered money but they feel they can do better with other elements.

“That should tell you about their evolution of thought — how they feel going forward with streaming.”

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AP Sports Writer Joe Reedy in Los Angeles contributed to this report.

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