MLB Int'l (MLBI) has been "profitable since it was set
up as a separate entity 10 years ago," according to Terry
Lefton of BRANDWEEK, who reports that over the "past five
years, its growth has been even more dramatic," as revenues
have "almost doubled, to a level approaching" $50M. Lefton
writes that while "other American sports properties have
struggled overseas," MLBI's revenues return "better than"
$1M in profit annually to each of MLB's 30 clubs. MLB
Senior VP/Domestic & Int'l Properties Tim Brosnan, on
baseball's overseas appeal: "We have legitimate stars from
other countries and fans following them here and abroad."
TV is MLBI's "cash cow, with big local deals" in Japan,
Korea, Canada, Mexico and Venezuela "helping to generate
broadcast rights fees that account for 75%" of the entity's
revenues. Additionally, licensing brings in 10% of
revenues, a 19% decline from five years ago, with the
Yankees "the top licensing draw," accounting for "more than
half of total sales." Sponsorship sales have also "grown
more than" 300% over the past five years and are MLBI's
"second-biggest revenue source." Lefton lists several MLB
sponsors that have added int'l components to their
partnerships: MasterCard "has added global rights;" PepsiCo
has added Central and South America; Gillette has rights in
Latin America and Asia; adidas and Nike have "non-exclusive
global rights outside the U.S., something they have thus far
seen no value in purchasing domestically." MLB COO Paul
Beeston said MLB and the MLBPA are on the "same page" on a
potential global tournament, and that a "plan for global
play should be unveiled within six months, meaning the
tourney could be held as soon as 2001" (BRANDWEEK, 10/18).
