MLB teams will get to pick their minor league affiliates under the new structureGETTY IMAGES
MiLB finds itself "bracing for seismic change," as after 119 years of operating as an independent entity, MiLB will "ultimately accede to Major League Baseball’s plan for a new governing structure," according to sources cited by Eric Prisbell of SPORTS BUSINESS JOURNAL. As a result, MiLB will be "brought under MLB’s umbrella to reimagine the minor league business-side model and align with Commissioner Rob Manfred’s long-held 'One Baseball' vision." MiLB is "resigned to MLB’s proposal to contract it from 160 to 120 affiliated teams, even though a wide array of owners are still divided over what governing structure is best." That issue "frames the remaining negotiations between MiLB and MLB in the final days of the Professional Baseball Agreement, which is set to expire Sept. 30." It is "unlikely that all details will be ironed out before the end of the month, but expectations are that a full agreement will be reached sometime this fall." A source said the governing structure that will emerge will be “new territory, a new business model and quite different.” MLB believes the minor league structure has "not dramatically evolved in 30-plus years, defined by low ticket prices and revenue generated from concessions" (SPORTS BUSINESS JOURNAL, 9/7 issue).
UNIFYING PLAN: ESPN.com noted the months leading to this point have been a "lesson in economics, politics and efficiency, but mostly power." In the new plan, MLB teams will get to "pick their affiliates -- four apiece, with discretion to cull the minor league clubs that play in substandard facilities or are simply inconveniently located." An MLB source said that large-market clubs "initially balked at the plan because they can afford to have more affiliated teams and thus develop more talent." MLB sources said that teams losing affiliation will be "encouraged to join either amateur summer 'wood bat' leagues populated by college players or become independent professional clubs." MiLB owners said that they understand they have "little leverage" but that they are asking MLB to "give them a longer agreement that secures the value of their franchises" (ESPN.com, 9/3).
