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Leagues and Governing Bodies

"REAL SPORTS" TAKES ITS LOOK AT MLB'S PAYROLL DISPARITY

          MLB's economic disparity "leads to revenue envy and the
     perpetual call to share revenue," according to HBO's Jack
     Whitaker on "Real Sports."  For the '99 season, the bottom
     six MLB payrolls will range from the Twins at $12-15M to the
     Pirates at about $24M, while the six highest team payrolls
     will range from the Indians at around $75M to the Dodgers at
     close to $90.5M.  But Pirates Owner Kevin McClatchy, the
     "youngest owner in baseball, is trying to convince the
     titans of the game to share their wealth, for the general
     good of baseball."  One result of those efforts may be that
     small market teams "might try to move their franchises into
     the rich team's cities, pouching some of their market in the
     process."  McClatchy: "I'm sure the Baltimore Orioles are a
     big advocate of no more revenue sharing.  But if we don't do
     something to solve the problems, you will see teams move. 
     That will have a significant effect on the Baltimore Orioles
     revenues.  And so, I think, if I were the Baltimore Orioles,
     I would push more for revenue sharing, than I would be
     pushing teams to come in to my backyard" (HBO, 3/22).  
          ANALYZE THIS: MLB Commissioner Bud Selig's study group
     on MLB economics includes McClatchy, and while Selig
     declined to be interviewed by "Real Sports," former MLB
     Commissioner Fay Vincent said he had the same idea, but
     "like many of my ideas, it turned out to be a disaster.  It
     was a waste of time.  This problem is bigger than any
     committee. ... The union is simply not going to do anything. 
     Look, this offseason made the case.  Why would they change
     anything?  When Kevin Brown got what he got, when Piazza got
     what he got ... The players would say, 'You're out of your
     mind.  Why would you change a system that is producing these
     results?  The owners may be crazy, but leave them alone.'" 
     Whitaker noted Rangers Owner Tom Hicks' effort to establish
     his own RSN to increase team revenue, becoming "another
     member of the roster of rich teams, that without a salary
     cap, will be unwilling to share revenue" with teams like the
     Pirates.  Hicks: "We're working real hard, and we have put
     in place the assets that are going to be very profitable for
     us over time.  We're not going to share the good stuff and
     keep all the bad stuff [increasing player salaries with no
     cap]."  But Whitaker responded, "The union has been adamant
     in saying there'll be no cap."  Hicks: "You have 85 to 90
     percent of their constituents who are unhappy because they
     don't have a chance to win when the season opens.  The union
     is going to change" ("Real Sports," HBO, 3/22).

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