SBJ/November 28 - December 4, 2005/Other News

MLB’s playoff payoff declines

The White Sox still had a record average player share despite the revenue drop.
The following lists postseason compensation pool money for the last six years:
$43.01 million
$31.96 million
$35.36 million
$41.36 million
$42.19 million
$40.79 million
Source: MLB
The Chicago White Sox’s World Series victory over the Houston Astros was a significant testament to Major League Baseball’s improved competitive balance. But it also created the first drop in postseason player compensation in four years.

MLB this year distributed $40.79 million in postseason player compensation, down 3.3 percent from 2004 and the first year-to-year decrease since 2001. Since MLB sets World Series ticket prices and nearly all MLB postseason games sell out, the annual compensation pool is largely a function of the stadium capacities of the competing clubs.

The money is collected from 60 percent of the gate receipts of the first three games of each division series and first four games of each league championship series and World Series.

The White Sox and Astros each play in stadiums ranking in baseball’s bottom third in seating capacity, and this year’s playoffs did not a feature a heavy presence of large-stadium clubs such as the New York Yankees and Mets and the Los Angeles Dodgers. The Yankees, a playoffs fixture, failed to reach the AL Championship Series for the first time in three years.

MLB officials said they were not concerned about the drop in gate revenue.

Despite the drop in total postseason compensation, the White Sox’s average player share of $324,532.72 set a record. The Boston Red Sox, MLB’s 2004 champion, received a larger pool of money, but the Red Sox awarded 58 full shares and 29 partial shares, compared with Chicago’s 42 full shares and six partial shares.

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