Another contribution for our out and about town intern James Gumina. Love his learnings…
As a young person in an age of limitless information, there are always a lot of things on my mind, mostly sports-related, and often focused on what’s happening off the field. From marketing campaigns to broadcasts to business strategy, it’s a lot to process. So, to clear some space, here are a few things from this week that have stuck with me more than most. Whether you’re in the business, a media nerd, or someone who can’t stop thinking about how the game is packaged, I hope something here sticks with you, too.
Red Sox Trade Rafael Devers to San Francisco
As an avid Red Sox fan, the only thing on my mind for much of the past week has been the Rafael Devers trade debacle. I was just as stunned when I found out the news on Sunday night as I was about the Luka trade, except this was my favorite player leaving my favorite team. Thousands of words have already been written on the locker-room aspect of this trade, so I won’t delve into those rumors here. But the transaction, and the reaction to it, show some of the unique things about baseball’s changing ownership structure. Strictly from a baseball perspective, Devers, who commands over a 250 million dollar price tag, was traded in what essentially was a salary dump. The Red Sox got some interesting players back, but none of the Giants’ best players or prospects were included in the deal; a fact that vastly increased the Boston fan outrage. The number one asset going back to Boston was financial flexibility. Most production and valuation models have the Devers contract as a net negative over the course of the deal, so the Red Sox were put in the unique position of having only a few teams aggressive enough to take it on. Thus, they were left with a bad return.
This newfound flexibility comes at an interesting time for Red Sox ownership group Fenway Sports Group (FSG), which recently completed one of the largest transfer buyouts in Premier League history. At the same time, they’re preparing a bid for a La Liga team and are in the process of offloading a stake in the Pittsburgh Penguins. Fenway Sports Group’s history tells a tale of how sports ownership is being transformed from a luxury status symbol to a piece of an investment portfolio. In the days after buying the Red Sox, FSG rapidly increased spending and was frequently bidding for top players in search of winning championships. In recent years, however, the Red Sox have floundered and shifted away from investing in top dollar signings. As FSG has begun to expand its portfolio, the Red Sox have faded from prized possession to revenue driver. Teams across the country are increasingly viewed as solid investments. With private equity money flooding into ownership groups, operations are being reshaped, often at the expense of fans, as clubs cut costs and trade stars like Rafael Devers, just two years into a ten-year deal. It may be boosting the team’s bottom line, but it’s harming fans and making the product less enjoyable. I wonder if this callous attitude will damage fan trust and turn people off the product in the long term. Time will tell, but for now I will be tuning into more Giants games.
Yankee Stadium
On Tuesday, I went to Yankee Stadium to watch them play the Angels. After Joon Lee’s piece on rising sports prices in the New York Times this week, I have been thinking about how rising costs have reshaped community building around sports. I found the atmosphere at Yankee Stadium to be enjoyable. But after spending a substantial amount of time this summer with USL League One team Westchester SC, I found the contrast to be remarkable. At Yankee Stadium no one was talking with one another, whereas it seems like people are constantly making new friends at the WSC games. The piped-in sound effects at Yankee Stadium make it hard to hear yourself think, let alone strike up a conversation with the person next to you, again, a totally different vibe than any smaller scale team or league. Thinking back on my favorite sports memories, many revolve around Cape Cod League baseball and its free tickets, another example of community-first sports. Aside from the obvious note of lowering prices, stadiums would do better to let the game breathe, get rid of artificial noise, and allow for community to be formed in the stands. After all, that is what sports are all about.
Stray Thoughts: Former NFL star Jimmy Graham taking to the ocean, Club World Cup struggles, J.J. Spraun’s improbable win, Boston Marathon qualifying changes
