MLB Commissioner-elect Rob Manfred is putting an end to baseball’s largely divided business structure, which has been hotly debated within the sports industry for more than a decade and the source of numerous internal battles.
According to several baseball sources, Manfred is completing a new leadership structure for his administration that will see MLB Advanced Media President and Chief Executive Bob Bowman take on significantly greater responsibility as chief revenue officer while leading sponsorship, licensing and sales in addition to baseball’s digital arm.
Meanwhile, Tony Petitti, now head of the MLB Network, will also take on a greater role in overseeing marketing, community affairs and special events. It’s unclear whether Petitti’s network responsibilities will be altered.
Also part of the changes will be a merger of owner-led boards of directors for MLBAM and MLB Enterprises into a single entity that will oversee an array of league business functions, including broadcast and digital media, sponsorship, marketing, licensing and international affairs.
MLB executives declined to comment. Manfred is expected to make formal announcements regarding the league’s senior executive team and board structure over the next few weeks. Owners were briefed on the changes last week in Kansas City.
The moves come as Manfred is just eight weeks from taking over from Commissioner Bud Selig, and are the first of what surely will be a number of changes across the league landscape. Manfred received unanimous owner approval last week for a five-year contract covering the 2015-19 seasons.
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Rob Manfred is eight weeks from taking over from Commissioner Bud Selig.
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Manfred said the transition from Selig has been “really productive and smooth,” but he declined to offer any details.
Bowman earlier this year had already gained operational oversight of the MLB Network as part of his portfolio, and he firmly lined up behind Manfred in his bid to become commissioner. Several team owners privately said last week that Bowman will have a “huge role” in the Manfred administration.
The moves represent a significant change in how baseball conducts its business activities and goes to market. MLB had pursued a “divide and conquer” business strategy for much of the past 15 years and resisted any effort to merge MLBAM and its Enterprises divisions. The league sold many of its online and offline media and marketing assets separately, in direct contrast to most other U.S. pro sports properties and often to the bewilderment of brands and corporate marketers. That split structure drew the ire of sponsors and many partners who were critical of having to do deals with two separate divisions that had different styles, oversight and inventory.
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The changes will give Bob Bowman a “huge role” under Manfred.
Photo by: GETTY IMAGES
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But the league countered such market sentiments by pointing to historic revenue growth for both MLBAM and its traditional sponsorship business as evidence of the wisdom of the bifurcated structure. These changes provide an immediate sign that Manfred intends to run the league office in a manner markedly different from Selig.
“This is really good,” said one team owner who declined to be identified because he is not authorized to speak publicly on the subject. “These boards should be together.”
The administrative changes also likely mean an end to the tenure of Tim Brosnan, currently executive vice president of business and president and CEO of MLB Enterprises, in the league office. An MLB employee since 1991, Brosnan was one of the three finalists this summer to succeed Selig as commissioner, but bowed out shortly before formal owner voting began. Brosnan was not present last week at the owners meetings.
