The return of MLB "means big business for the companies that
own the teams, broadcast their games and create trading cards
with their pictures. And it relieves those who feed and pitch
other goods to the fans," according to a report in the WASHINGTON
TIMES. Converse Chair Gib Ford: "Everyone's going to have to
wait and see how much damage this strike really did to baseball."
Companies which should make gains with baseball's return are team
owners Labatt's, Tribune Co., and Anheuser-Busch, as well as
Coors. Others are also "wearing big smiles." Shares of Score
Board and Topps have been rising and apparel makers Starter,
Fruit of the Loom and VF Corp. have also rallied (WASHINGTON
TIMES, 4/9).
MERCHANDISE: ESPN's Larry Rawson looked at the effect of
the strike on baseball merchandise, from Rotisserie leagues to
baseball books. Rawson: "The lack of Rotisserie interest has
taken a financial toll for some." Marty Laufer, a bookstore
owner, said he has lost $20,000 to $30,000 in sales in the last
eight months. Rawson: "It wasn't just small business that were
hurt, major corporations were hammered as well." Topps Public
Relations Director Marty Appel: "Not since 1965, have we produced
as few cards in our Topps line." Topps was forced to lay off 200
employees at its factory in PA, and earnings were down 68%.
Rawson reports that "in an attempt to make up for the lost
season," Topps has invented the CyberStat card, a fantasy
baseball card that shows how each player would have done had the
'94 season been played in full. Rawson also reports that card
show dealers are moving their merchandise into other sports.
MLB's licensed merchandise is "staying on the shelf" and MLBP
could take a loss of up to $750M-$1B. Don Gibson, MLB Senior
VP/Business Affairs: "Now our focus is not so much on trying to
build 1995, but rather to try to recapture as much as we can for
this year and build from 1996 going forward" ("SportsCenter,"
ESPN, 4/9).
AD DOLLARS: MLB retained "all but one" of its 20 multi-year
deals with majot TV advertisers, according to this week's
BUSINESS WEEK. "But other, smaller deals haven't materialized,
so owners remain $60 million short of the $200 million in
national ad revenues they were set to collect before the strike
last season. ... Still, the robust economy has created a shortage
of ad space during prime time, when the league broadcasts games
on 12 nights plus the playoffs and World Series." Young &
Rubicam's Robert Igiel: "The overall tightness of the prime time
market will help tremendously" (Bernstein & Griesing, BUSINESS
WEEK, 4/17 issue). NBC is running an ad spot that says simply,
"Baseball's Back" (Michael Hiestand, USA TODAY, 4/10).
