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Caught Looking: The Struggle for Unionization in Minor League Baseball ILR Sports Business Society 2015-2016 Ä

For more information on Sports, Inc. or the ILR Sports Business Society, please contact Advisor Kevin Harris at [email protected].

Executive Board Magazine Staff ^ * Advisor Kevin Harris ijr Co-President Sarah Gilman '16 Editor-in-Chief Karthik Sekharan '17 Co-President Ethan Cramer Gibbs' Layout Editor Sabrina Smith'18 President of Magazine Karthik Sekharan '17 President of Radio Ben Gilman '18 lVr/ter Josh Klein "18 President of Blog Skyler Kanfer'17 Writer Stephen Driscoll'18 VP of Events Josh Klein '18 " U Writer Ben Gershenfeld '19 JlJ; Creative Director Sabrina Smith '18 \ Writer Noah Fink'19 pa VP of Marketing Alex Zalesne '18 Writer Chudi llogu'19 VP of Finance Evan Lefkovitz '16 Sfe» Writer Jordan lsenberg'17 Zachary Torng'19

Hannah Bluestein '19 * The ILR Sports Business Society, an independent student 3c - organization located at Cornell University, produced and is responsible for the content of this publication. This publica- tion was not reviewed or approved by, nor does it necessarily '■ V A express or reflect the policies or opinions of, Cornell University * or its designated representatives. Volume VIII, Issue 2: Spring 2016

Contents

The Lap of Luxury: Major League Baseball and the Competitive Balance Tax By Noah Fink '19

Caught Looking: The Struggle for Unionization in Minor League Baseball By Josh Klein ' 18

Gaming the System: The Draft Lottery in the Modern NBA By Stephen Driscoll'18

Rebranding The Premier League ByChudillogu‘19

Who's Really Being Punished? By Ben Gershenfeld ‘19

Major League Soccer: Best in the World by 2022? By Jordan Isenberg' 77 The Lap of Luxury: Major League Baseball and the Competitive George Steinbrenner, the architect of the modern Yankees franchise and its free-spending ways Photo courtesy of Latino Sports. Balance Tax Noah Fink ‘19 and Red Sox be able to “buy” their cham­ luxury tax for a single year at $40 million, pionships? In short, how effective has this as their payroll approached the mammoth The year 1994 saw America’s pastime measure been in relation to a hard salary figure of $275 million.7 So while only the fade into the shadows as one of the longest cap like that utilized in the NFL, which the Red Sox and Yankees have claimed titles strikes in American professional sports MLB owners originally wanted? with a tax-inducing payroll, it is worth not­ history commenced.1 The dispute erupted From data provided by USA To­ ing that 20% of the league has been willing because of an attempt by MLB owners to day (from 1996-2000)4 and Baseball Pro­ to spend a considerable amount of money curtail player salaries (via a salary cap) in spectus (from 2000-2015)5, there has been on player salaries and the resulting tax. order to ensure that the league did not con­ only one year since 1996 that saw both The primary goal of the luxury tinue to have a growing disparity between teams competing in the World Series with tax is to curtail spending so that “poor” the “rich” and “poor” teams’ abilities to a below-average payroll: the 2015 World teams can compete for and win the World sign free agents. After a brutally divisive Series between the Royals and the Mets. In Series, and there are some instances of strike and Federal intervention, a compro­ the past 20 World Series, 13 matchups fea­ proverbial “Davids” facing off against the mise was reached. The 1996 Collective tured two teams who were above the league “Goliath” of payroll disparity. The Miami Bargaining Agreement (CBA) contained average payroll. Furthermore, 16 of the past Marlins stunned the baseball world when the first attempt at a “luxury tax”, which 20 World Series winners have had the high­ they toppled the New York Yankees in the would penalize the teams boasting the top er payroll, including the victor from every 2003 World Series while having the mea- five highest payrolls in baseball. This form year since 2007. Since 1996, only 10 teams of the luxury tax lasted from 1997-1999, in total have claimed the World Series tro­ “The primary goal of and the years 2000-2002 saw no penalties phy, which points to a pattern that success­ associated with payroll. In 2002; however, ful teams are likely to be successful again. the luxury tax is to the two negotiating sides decided to rework While only two teams, the Yankees and curtail spending so the concept and the Competitive Balance Red Sox, have won the World Series while Tax came into being in 2003.2 This new having to pay the luxury tax in the same that “poor” teams tax stipulated that should a team’s payroll season, they account for 25% of World Se­ can compete for and surpass a predetermined amount (which ries-winning teams since 1996. In total, six would be readjusted every year), the team teams have had to pay the MLB the luxu­ win the World Series, would have to pay the league a percentage ry tax, with those teams being the Yankees and there are some of the amount that the team had overspent. (from 2003-present), the Angels (2004), For its first time surpassing the threshold, a Red Sox (2004-2007, 2010-2011, 2015), instances of proverbi­ team would pay 17.5%, its second offense Dodgers, (2013-2015), Tigers (2008) and al “Davids” facing off would cost 30%, with 40% for its third Giants (2015), totaling over $400 million overage, and 50% for any more subsequent in payments, 75% of which has been paid against the offenses.3 Would this system allow for a by the Yankees and 20% of which has come “Goliath” of level playing field for teams and curtail the out of the pockets of the Dodgers’ owners.6 dominance of the free-spending, “big mar­ The Dodgers also have the dubious honor payroll disparity.” ket” teams or would teams like the Yankees of having paid the highest amount of the

4 Sports, Inc. ger payroll of $47,850,000 tinue. With history acting as a Y e a r W inning Team Payroll (ln S) Payroll (In S) Payroll (In S) (Runner-up) R u n n e r - u p

(compared to the league aver­ guide, it is highly unlikely that ( W in n in g ) (League Ave.) age of just over $70,700,000 the MLB will ever change its 1 9 9 6 * NY Yankees 52,189,370 26,709,871 47,„„,000 ATL Braves and the Yankees massive pay­ policy in regards to the luxury 1 9 9 7 * FLA Marlins 47,753,000 34,908,977 54,130,232 CLE Indians roll of $153,774,814). In 2007, tax, given the uproar that came 1 9 9 8 * NY Yankees 63,159.898 39,532,994 45,368,000 SD Padres the upstart Colorado Rockies from their last attempt to cur­ 1 9 9 9 * NY Yankees 88,130,709 41,150,949 85,080,449 faced off against the Boston tail player earnings, so even if ATL Braves Red Sox despite facing a pay­ the Competitive Balance Tax 2 0 0 0 * NY Yankees 92,327,810 55,421,475 79,449,762 NY Mels roll gap of $90,000,000, but proved ineffective, it would be 2 0 0 1 ARI D-backs 85,080.445 64,967,084 111,161,143 NY Yankees they fell short. The Tampa highly unlikely that the MLB 2 0 0 2 LA Angels 61,414,167 67,280,839 78,514.835 SF Giants

Bay Rays reached the 2008 would even consider changing 2 0 0 3 FLA Marlins 47,850,000 70,704,480 153,774,814 NY Yankees*

World Series with a payroll of over to a hard salary cap. 2 0 0 4 BOS Red Sox* 128,545,500 69,446,977 81,845,000 StL Cardinals

47,124,500, almost half that When it comes to ac­ 2 0 0 5 CHI While Sox 75,695,000 73,334,781 78,786,000 HOU Astros of the average MLB team and tual results, the MLB has had 2 0 0 6 StL Cardinals 89,093.658 79,175,087 85,198,456 DET Tigers well below the Series-winning 63.33% of its current league 2 0 0 7 BOS Red Sox* Philadelphia Phillies’ payroll of compete in the World Series 147,568,833 83,994.538 57,062,000 COL Rockies $100,535,047. Finally, the 2010 over the past twenty contests, 2 0 0 8 PHI Phillies 100,535,047 91,069,506 47,124,500 TB Rays Texas Rangers appeared in the while the NFL has had 59.38% 2 0 0 9 NY Yankees* 203,275,189 92,074,828 137,837,830 PHI Phillies Fall Classic with a payroll of of its current league in the Super 2 0 1 0 SF Giants 97,023,833 94,139,311 58,490,000 TEX Rangers

$58,490,000, and they eventu­ Bowl in the same time frame. In 2 0 1 1 StL|Cardinals 109,798,000 96,125,367 96,713,370 TEX Rangers ally fell to the San Francisco regards to Super Bowl winners, 2 0 1 2 SF Giants 131,980,298 100,756,166 133,060,667 DET Tigers Giants and their rather mod­ the NFL boasts a percentage of 2 0 1 3 BOS Red Sox* 150,665,000 106,625,054 116,505,000 StL Cardinals est payroll of $97,023,833. As 34.38% of its teams hoisting a 2 0 1 4 SF Giants 145,439,474 115,366,765 92,185,521 KC Royals history has shown, it is indeed trophy from the 1996 season’s possible for “poor” teams to Super Bowl on, while the MLB 2 0 1 5 KC Royals 112,857,025 125,429,637 101,344,283 NY Mets reach the World Series, but they is slightly behind that figure World Series winners' salaries have faced an uphill battle in with 33.33%. These numbers Data courtesy of USA Today terms of actually winning their show, in part, that no signifi­ contests. While this particular cant difference exists between the percentages of participants. Works Cited sample size is small, the trend the results that the Competitive While the results are not con­ 1.Susanna Kim. “The NHL Strike can be seen throughout the past Balance Tax and the salary cap clusive, it would be very irre­ and 7 of the Worst Labor Dis­ putes in Pro Sports”. ABC 20 years. have yielded. This brings us sponsible to assume that these systems are the sole cause of News. 7 Jan. 2013. Representing an al­ to two possible solutions: ei­ 2. Cliff Corcoran. “The Strike: these results, and to be sure, ternative solution to the issue ther the MLB is more evenly Who was right, who was that the MLB owners wished to distributed than was originally much more comprehensive wrong, and how it helped resolve is the NFL Salary Cap, thought, or that the NFL simply analysis could be done on this baseball”. Sports Illustrated. which, rather coincidentally, experiences the same difficulty subject. Specifically, one could 12 August, 2014. went into effect in 1994.8 The with ensuring that “any and all look at possible stratification in 3. Nathaniel Grow. “MLB’s Evolv­ NFL Salary Cap differs from teams could win”. Given the the NFL in the salary cap era ing Luxury Tax”. Fangraphs. the luxury tax significantly but clear advantage that teams with or the effects of the different 1 May 2015. 4. “MLB Salaries”. USA Today. aims to achieve a similar goal larger payrolls have enjoyed playoff systems in the crown­ ing of winners, or other such 5. “Compensation”. Baseball Pro­ in that it wishes to impose some in reaching the postseason and spectus. factors. The observations made sense of parity among teams. winning the World Series, the 6. Ryan Hatch. “Numbers don’t lie: While not every football team second conclusion seems plau­ here only scratch the surface of Yankees have paid 75% of all is definitively constrained by sible. Arguably, the evidence the complexities that dominate MLB luxury tax since 2003”. the salary cap (that is, some points to the MLB’s Luxury the respective games and their NJ.com. 3 Dec. 2015. teams have room to spend more Tax as more effective in creat­ monetary systems, but perhaps 7. “Dodgers lead MLB with record money and choose not to), it ing some level of parity in the this will serve as an indicator $43.6 million paid in luxury would seem to be a more effec­ sense that more of its current that the levels of parity among tax.” ESPN. 18 December, 2015. tive tool for combating “strati­ league, proportionally speak­ and between the two leagues are not exactly as one would 8. Cork Gaines. “Sports Chart of fication”, as all teams can only ing, has actually reached the the Day: History of the NFL assume them to be. pay out a certain amount to championship game compared Salary Cap”. Business Insider. players. This contrasts starkly to the NFL. While it is import­ 20 July 2011. with the MLB’s Competitive ant to remember that the NFL Balance Tax, which, as it was has had a higher percentage of Noah Fink is a freshman shown, only penalizes teams its teams win the championship in the ILR School. with large payrolls while still game, the percentage is not He can be reached at allowing any disparity to con­ nearly as large as that between [email protected].

Spring 2016 5 Caught Looking: The Struggle for Unionization in Minor League Baseball

Josh Klein ‘18 players also receive no over­ Broshuis saw a faint light at the retired MLBPA lawyer, claims time pay or alternative compen­ end of the tunnel. To escape there’s nothing wrong with this. If things weren’t already bad sation during spring training or the incessant cycle of trying “We don’t represent them,” enough for Garrett Broshuis for participating in off-season to advance from the secondary Orza argued referring to minor in 2006, the sound of an over­ instructional leagues.3 And the ranks, minor league baseball leaguers, “and have no obli­ flowing toilet coming from past precedent for yearly wage players, like their professional gation.”9 Technically, Orza is the second floor of his Nor­ increases leaves little hope for equivalents, needed a union. right: the only obligation the wich apartment likely signified future change. While salaries According to Gabe PA has is to its actual members. rock-bottom for the 24-year- of major leaguers have sky­ Feldman, director of the Sports The approach, at least from old.1 For the past few months, rocketed by more than 2,000% Law Program at Tulane Uni­ a major league perspective, Broshuis had been crammed since 1976, minor league aver­ versity Law School, “MLBPA makes sense. The more mon­ with several coworkers in a age wages have only risen by is the strongest” union.5 After ey owners save on entry-level flat enclosed in a dangerous 75%, a hike far below the infla­ all, while other premier sports prospects, the more they are Connecticut neighborhood. tion rate of 400% in that spell.4 leagues like the NBA and NFL willing to spend on low- to Though he had managed to endured lockouts and labor mid-level players. Without cope with his $1,100 monthly “So the question strife, the 2012 MLB collective minor league representation, check and seemingly perpetual becomes, why hasn’t bargaining agreement ensured rookies are helpless; “the mon­ grueling travel until then, the 21 consecutive years of labor ey will always flow in one di­ flooding of his meager living there been more peace for baseball. The con­ rection.”10 Legally, the Players quarters brought the recent col­ of a push for tract itself demonstrated the Association is not accountable lege grad to his boiling point. substantial bargaining power for preserving minor league Garrett Broshuis was not a fast- minor league of the Players Association. As interests. The ethics of Orza’s food worker barely scraping by representation — it usually does, the MLBPA logic, however, are very much on minimum wage. Nor was secured a minimum wage in­ in question. An indifference the Missouri native an inde­ why are union crease with automatic cost- to the condition of lower-level pendent contractor, struggling advocates like of-living boosts in both of the players is understandable. The through the low-demand winter following two years; in 2014, active pursuit of contract terms months. No, Broshuis, a tall Garrett Broshuis even the lowliest major leaguer financially detrimental to future and lanky athletic freak, was a so rare?” earned at least half a million minor leaguers? Well, that is minor league baseball player. dollars.6 A 5% rise in the por­ harder to justify. Broshuis’ story is In 2006, Garrett Broshuis was tion of players with 2-3 years MLB’s past collective not an uncommon one. Most all too familiar with the pro­ of major league service eligible bargaining agreements rather minor-leaguers earn between gressively bleak outlook in for salary arbitration illustrat­ obviously outline the benefits $1,100 and $2,150 a month minor league baseball. As ed another victory for the PA.7 of a player union: higher wages during the five-month, 140- the righty hurler covered his Here’s where things get more and benefits, job security, and game season.2 Long bus rides, soaked apartment carpet with complicated. The two sides valued seniority. So the ques­ late-night workouts, and pov­ towels, he wistfully reflected also agreed to rein in spending tion becomes, why hasn’t there erty-level wages are simply the on the lucrative deals that his on players coming to the ma­ been more of a push for minor trade-offs for a chance to some­ major league counterparts were jor leagues; penalties would be league representation—why day play in the big leagues. Yet receiving. The pros, unlike levied on teams for handing out are union advocates like Garrett while such deplorable work­ lower-level players, were or­ bonuses in amateur drafts that Broshuis so rare? One expla­ ing conditions for employees ganized and served by capable exceeded imposed thresholds.8 nation is the seemingly almost in virtually any other industry representatives skilled in the art Why would the MLBPA agree universal sentiment among mi­ would border on unlawful, of negotiation. Major league to lower signing premiums for nor leaguers that, as captured by athlete maltreatment goes rela­ CBAs, in stark contrast to mi­ its youngest players? It’s sim­ Nationals’ Class AA outfielder tively unnoticed. Not only are nor league arrangements, sat­ ple: amateur draftees are des­ Randolph Oduber, “It’s the life their salaries often insufficient isfied both the owners and the tined for the minor leagues. we chose.”" Whether hesitant to cover rent, but minor league players. Fed up with his plight, Gene Orza, a recently to upset team management, or

6 Sports, Inc merely grateful for the opportunity to play with major league contracts. The con­ is certainly valid. The concept of distribu­ baseball for a living, most minor leaguers tract’s definition of the unit, however, is tive bargaining is quite straightforward: in are not campaigning for higher wages. A rather ambiguous. Article 11 of the official fixed pie negotiations, a bigger slice for one dose of reality, however, could change ac­ collective bargaining agreement between party means a smaller portion for another. cepted norms. From 1987 through 2008, MLB and the PA reads: Yet in its unquestioning commitment to fis­ only about 17% of players drafted and The Clubs recognize the Association as the sole cal gains, the MLBPA has lost sight of the signed played at least one game in the ma­ and exclusive collective bargaining agent for intangibles; there are indeed non-monetary jor leagues.12 On a sliding scale, from AAA all Major League Players, and individuals who benefits of minor league representation. down to A, the percentage of future MLB may become Major League Players during the While increasing minor league wages may term of this Agreement, with regard to all terms players markedly drops with each class. decrease major league pay, better condi­ and conditions of employment.16 The bottom line: the vast majority of base­ tions, at least according to Arizona Dia­ The word “may” is subjective. By ball players will spend their entire career mondbacks reliever Brad Ziegler, “might prevailing interpretation, the modern-day in the minors. This understanding is cru­ encourage more young athletes to opt for bargaining unit contains the 25 athletes per cial to changing the prevalent perception baseball.”19 In a sport that saw U.S. youth team eligible to play at any given time (up that low salaries and poor conditions are participation drop by 5.3 million children to 40 on reserve) multiplied by the league’s simply a “right of passage.”13 Sure, when and teens between 2000 and 2013, spurring 30 franchises.17 Yet such limitations ex­ established major leaguers reflect on their kids to get back into the game is more im­ clude all the minor league players who farm system experience, it is quite easy to portant than ever.20 “may” become big leaguers at some point view time in the minors as a small bump in The performance of minor in their career depending on the needs of the road. The reality is that a Class A in­ leaguers also stands to improve with an their major league affiliate. As Wollett sen­ fielder with a family to feed and bills to pay enlarged bargaining unit. Superstar Blue sibly notes, “the fact that a player ‘may be­ is a more accurate embodiment of minor Jays shortstop Troy Tulowitzki suggests come’ a major leaguer does not mean that league players. For them, their predicament that “the food available to minor-leaguers he ‘is.’”18 The key takeaway here is that is not merely a “bump,” it’s the road itself. at clubhouses should be more nutritious though the Players Association does not A more logistical impediment to because it provides fuel for their perfor­ speak for minor leaguers, by the terms of minor league unionization efforts is a lack mance.”21 Clubhouse sustenance is an the contract, it could if it chose to do so. If of bargaining leverage. Leverage, a fun­ example of a subject of bargaining that the MLBPA cared about fairness, it would damental concept of labor relations, is es­ goes beyond salaries. With representation, try to negotiate more favorable arrange­ sentially “negotiation’s prime mover, con­ minor leaguers could append their current ments for amateur draftees and fashion bet­ ferring power to reach agreement on your arrangement to incorporate provisions that ter compensation packages for September terms.”14 Unlike major leaguers who drive enhance player diet, revise outdated trans­ call-ups. Still, the plain truth of the matter ticket sales, encourage team merchandise portation protocols, and upgrade living is that it is capital, not integrity, that drives purchases, and draw fans, leading to lucra­ conditions. Though harder to quantify, the league. And thus it is money that dic­ tive media rights deals, minor league play­ such measures would likely improve the tates negotiations. ers have little clout. It is hard to envision overall quality of play, leading to a ripple The Association’s assertion that a minor league players association making effect in which farm call-ups would enjoy serving minor leaguers would conflict with any substantial gains at the bargaining ta­ greater success at the major league level. major league interests, though frustrating, ble without the ability to threaten, or even sway, the owners. Yet as labor lawyer Don Wollett argues in his book Getting on Base, a large national union, the Teamsters for example, could swoop in and organize the minors to keep baseball healthy.15 Theo­ retically, Wollett is correct: the Teamsters could organize the minors. But with so little money at stake in the minor leagues, there is just not enough incentive for a national union to justify extending its re­ sources. Perhaps, however, there is a cre­ ative solution to the unionizing dilemma. If minor leaguers lack the leverage necessary to form their own players association, and if a national union is unmoved by a minor league opportunity, there is still one more potential resolution: expand major league baseball’s bargaining unit. The current bargaining unit for baseball includes only the 1,200 players

Spring 2016 7 SALARY STATS

Minor league baseball players are grossly underpaid. Graphic courtesy of blogspot.com Despite the perks of organization, the eyes of Don Wollett, minor league play­ tiation,” Harvard Negotiation Law Review the last player to talk seriously about mi­ ers have two strikes on them and are ready (2013): 101-156. nor league unionization was, unsurprising­ to take a cut (organize): “they’re like a ‘ripe 14. Donald Wollett, Getting on Base: Union­ ly, Garrett Broshuis. Even without league plum’ ready for the right person ‘simply to ism in Baseball (Bloomington: iUniverse, 2008). support, Broshuis has not given up. The pick off.’”24 Of course, preparation and a 15. “2012-2016 Basic Agreement,” MLB Play­ pitcher turned attorney has challenged the willingness to be represented only go so ers Association. classification of baseball players as sea­ far. Forming a union is, after all, hardly a 16. Ibid. sonal employees, thus exempting athletes guarantee. But just like a batter buckling 17. Wollett, Getting on Base, xxi. from minimum-wage laws. Conceivably, down in a pitcher’s count, it’s at least time 18. Ortiz, “In Suing MLB.” categorization of sports as part-time work for minor leaguers to swing. 19. Brian Costa, “Why Children Are Abandon­ was once a reasonable argument. But now, ing Baseball,” The Wall Street Journal, a time in which spring training and instruc­ May 20, 2015. tional leagues are all but mandatory for as­ Works Cited 20. Ortiz, “In Suing MLB.” 21. Travis Waldron, “Minor League Baseball piring major leaguers, baseball is seldom a 1. Lily Rothman, “Emancipation o f the Mi­ Players Allege Wage Violations in Lawsuit form of cyclical employment. Represent­ nors,” Slate, April 3, 2012. Against MLB,” Think Progress, February 2. Ashby Jones, “Baseball Suit Calls Out Minor ing three former minor league players, Bro­ 13,2014. shuis recently filed a lawsuit against MLB League Pay,” The Wall Street Journal, Sep­ tember 19, 2014. http://www.sportingcharts.com/dictionary/ for minimum wage and overtime violations mlb/caught-looking.aspx, “Caught Look­ 3. Howard Megdal, “The Plight of the Mi­ ing” and unfair business practices.22 Short of nor League Baseball Wage Slave,” Vice 22. Rothman, “Emancipation of the Minors.” unionizing, this lawsuit represents minor Sports, November 4, 2014. leaguers’ best chance at improving their 4. Jorge L. Ortiz, “In Suing MLB, Minor working conditions. Perhaps a victory in Leaguers Want Minimum Wage for Max­ court will galvanize a rather uninspired imum Effort,” USA Today, April 22, 2015. workforce. With a dose of reality, farm 5. Erik Brady and Bob Nightengale, “Labor system prospects might begin to see the Piece: Who Gets the Big Slice?,” USA To­ benefits of representation. And maybe, just day, March 2, 2011. 6. Rothman, “Emancipation of the Minors.” maybe, the MLBPA might concede major “MLB Players, Owners Sign an Agreement,” league compensation to support a fading ESPN, November 23, 2011. game. 7. Ibid. A batter is said to have been 8. Rothman, “Emancipation of the Minors.” “caught looking” when “a third strike cross­ 9. Ibid. es the plate in the strike zone and the batter 10. Ortiz, “In Suing MLB.” does not make an attempt, resulting in a 11. Jones, “Baseball Suit.” strikeout.”23 A called strike three is often 12. Megdal, “Minor League Baseball Wage a source of frustration for players and man­ Slave.” 13. Paul F. Kirgis, “Bargaining with Conse­ Josh Klein is a sophomore in the ILR School. agers; a two-strike hack, at the very worst, quences: Leverage and Coercion in Nego­ He can be reached [email protected]. would have yielded the same outcome. In

8 Sports, Inc. Gaming the System: The Draft Lottery in the Modern NBA

Stephen Driscoll ‘18 several years, 2013-present, the worst team numbers are chosen three separate times in the NBA.4 So what happened? (without taking out the drawn numbers). After finishing just outside the playoffs in Since taking over the Sixers, The NBA only employs this drawing pro­ the 2012-2013 season and having traded Hinkie has attempted to obtain the most cess for the first three picks, and after that their best player (Andre Iguodala) for a important asset for any struggling team: a the rest of the teams are ordered based on player that would never play a game for superstar.5 For the vast majority of teams, the inverse of their regular season records them (Andrew Bynum) the summer prior, the easiest way to acquire a NBA superstar (except for the NBA Finals Champion who the decided to change is through the draft.5 The NBA draft seeks always picks last). To determine which course.1,2 Enter Sam Hinkie. Hired in May to redistribute the top incoming young tal­ teams win the first three picks, before the of 2013 to replace Rod Thom as General ent in the NBA to the teams that need it drawing each team is assigned a certain Manager (GM) and President of Basket­ most by sequencing the picks in the inverse number, a certain number of four-number ball Operations, Hinkie is a member of the order of the teams’ regular-season records.6 combinations (ex. 14-1-3-4, order doesn’t increasingly prominent sports analytics Put simply, the worst teams pick first, while matter) out of the possible 1,001 (al­ movement sweeping through NBA front the best teams pick last. However, in the though there is one combo that goes unas­ offices.3 Using the Moneyball-type tech­ NBA, the team with the worst record is not signed).6 The distribution of these random­ niques to find unexploited player value guaranteed the first pick. Instead, the order ly assigned combinations is how the NBA through advanced statistics learned during of the top fourteen picks (representing the weights the lottery process. For example, his eight years under basketball analytics fourteen teams that did not make the play­ in 2015 the fin­ pioneer and GM Daryl offs that year) is chosen through a weight­ ished with the worst record in the league. Morey, Hinkie hoped to rebuild the Sixers ed-lottery system that favors the teams (out The Timberwolves were subsequently as­ into a modem basketball juggernaut.3 That of the fourteen) with the worst records and signed 250/1000 of the delegated combina­ vision has yet to come to fruition. Instead works against teams with better records.6 tions giving them a 25% chance of winning the Sixers have arguably been for the last From a lottery machine with four­ the lottery and gaining the first pick.6 For teen ping-pong balls numbered 1-14, four the worst team in the league, this means

The NBA draft lottery is an annual event held since 1985 Photo courtesy of nba.com

Spring 2016 9 the lowest pick they could have Seed Chances 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th is 4th, while giving them a 25% chance for the 1st pick, a 1 250 .250 .215 .178 21.51% for the 2nd pick, and a 2 199 .199 .188 .171 17.77% chance for the 3rd pick 3 156 .156 .157 .156 (which leaves a 35.72% chance for the worst case 4th pick).6 4 119 .119 .126 .133 The better the team was that 5 88 .088 .097 .107 .261 .360 .084 .004 year, the fewer combinations it gets and the worse chance it has 6 63 .063 .071 .081 .439 .305 .040 .001 to win one of the first three picks 7 43 .043 .049 .058 .599 .232 .018 .000 in the lottery. For instance, the (the 8 28 .028 .033 .039 .724 .168 .008 .000 team with the best record of the 9 17 .017 .020 .024 .813 .122 .004 .000 14 non-playoff teams last year) only had 5/1000 assigned com­ 10 11 .011 .013 .016 .870 .089 .002 .000 binations or only a combined 11 8 .008 .009 .012 .907 .063 .001 .000 1.82% chance of winning any of the top three picks.6 Under­ 12 7 .007 .008 .010 .935 .039 .000 standing these odds, many GMs 13 6 .006 .007 .009 .960 .018 have deduced that the best way 14 5 .005 .006 .007 .982 to guarantee a top pick (where The lower the seed, the 1 ' the chance of getting of the first pick in the NBA draft lottery. for the most part the best play­ Graph courtesy of nba.com ers are chosen7) is simply to Brand to mentor the young­ the Sixers have seen revenue become as bad as possible. It is In return for losing, fall to last in the league at only here that Hinkie has succeeded the Sixers have stockpiled a er players such as Okafor.1213 wildly.8 treasure trove of future draft This commitment to become $124 million and have seen Within the span of picks from various teams, have competitive also extends to the their franchise valuation sink to the third lowest in the league. It three years, the Sixers have acquired several talented young coaching bench where the Six­ gone from a record of 38 wins players and the rights to oth­ ers have signed the revered of­ should be noted that, much like every other team in the league, and 44 losses (38-44) in the ers that are playing overseas fensive guru Mike D’Antoni as both their valuation and reve­ 2012-2013 season to a com­ (particularly Dario Saric), and an assistant to head coach .14 Altogether, the Sixers nue is up from three years ago in bined (as of 2/27/15) 45-177 gained pole position to finish part due to a massive television in the two and a half years with the worst record in the with their young core, numer­ rights contract.15 Finally, until since Hinkie’s arrival to Phila­ NBA this year and thus have the ous draft picks (including those Josh Harris, the owner of the delphia.8 To achieve this goal, best chance to win the draft lot­ from other teams), and upgrad­ Hinkie executed many trades tery. Although the Sixers have ed coaching staff have laid a Sixers relented and hired Jerry real groundwork to winning. Colangelo as Chairman of Bas­ that often netted the Sixers fu­ been historically bad, they have ture assets, such as draft picks, not during Hinkie’s tenure had However to build this core ketball Operations, the Sixers had been under enonnous pres­ in exchange for quality veteran the worst record in the league that as of now has gone 8-50 sure from other owners and the players the Sixers possessed or or obtained the first pick.9 In the this season, the Sixers have for the Sixers to take unwanted upcoming draft the Sixers (at had to pay a substantial cost in league office to make an effort to put an end to their losing.16 contracts off the other team’s press time) have the rights to at terms of ticket sales, revenue, least four of the first 31 picks.10 respectability, and prestige in Other team owners and league roster.9 This has left the Sixers roster over the last couple of Along with their current young league inner circles.15’1617 officials have been worried that years to be filled by castoffs, re­ players such as Jahil Okafor, Within the last three the Sixers are threatening the cently drafted players, or play­ , the injured Joel years, the Sixers, who play in integrity of the league (chal­ ers traded to them with burden­ Embid, and , the fourth largest media market lenging the notion that all the in the country, have suffered teams want to win), and that the some contracts. Neil Paine at the Sixers have the potential to Sixers have hurt other teams’ fivethirtyeight.com (an affiliate become a winning team within severe setbacks in terms of at­ of ESPN) calculated that the the next couple of years.11 In­ tendance as fans have become bottom lines as the Sixers draw Sixers have been worse than deed, over the last couple of uninterested in the consistent hardly any road crowds and any team in the last three years months the Sixers have shown losing.18 Currently, the Sixers thus depress attendance when and that they have made less a willingness to become com­ have the second least attended on the road as much as when progress than expansion teams petitive in the near-future by home games this season and they are at home.16 The Sixers that start with no assets.4 What trading several picks for tal­ have been in the bottom three also generally affect the parity have the Sixers accomplished ented point guard Ish Smith in home attendance each of the of the league as whole, and set a precedent (if the current front by being this bad? and by signing veteran Elton last three years.14 As a result,

10 Sports, Inc. office is successful) of teams avoiding be­ A 6-year example of such an order of picks Works Cited ing good. By creating, in essence, two tiers would be 1st, 30th, 19th, 18th, 7th, and 6th. 1. “NBA Standings 2012-2013 Season,” ESPN. of teams: potential title winners and poten­ 19 Without the connection to futility or com. tial lottery winners, the Sixers make many success teams would have no incentive to 2. Spike Eskin, “Sixers Trade Iguodala For An­ of the regular season lose because there drew Bynum In Four-Team Dwight How­ ard Blockbuster,” CBS Philadelphia, Au­ games (in already “Within the last three would be no reward gust 10, 2012. the most predictable years, the Sixers, in doing so. Al­ 3. Associated Press, “76ers formally hire Sam sports league) less who play in the fourth though this propos­ Hinkie,” ESPN.com, May 14, 2013. competitive and less al eliminates strate­ 4. Neil Paine, “The 76ers Would Be The Worst exciting.19 Overall, largest media gic losing, it creates Expansion Team In Modem NBA History,” the Sixers’ pursuit of a new set of issues fivethirtyeight.com, December 18, 2015. losing to potentially market in the country, that would be diffi­ 5. Scott Davis, “The Philadelphia 76ers: the draft the best young have suffered severe cult to address such team with the most radical rebuilding strat­ players has made as the possibility of egy in the NBA — are supposedly on a 7-year plan to compete for a title,” Busi­ fans, the media, oth­ setbacks in terms of losing teams hav­ ness Insider, July 16, 2015. er teams, and the attendance as fans have ing an inability to 6. “2015 NBA Draft Lottery: What will hap­ NBA itself question become uninterested quickly get better if pen?,” NBA.com, May 18, 2015. whether the current they miss on a good 7. Nate Silver, “How Much Is Winning the draft rules incentiv- in the consistent losing.” draft pick or two, (NBA Draft) Lottery Really Worth?,” ize losing and if a and maybe more fivethirtyeight.com, May 20, 2014. different way to allocate the best incoming problematic, a championship team hav­ 8. “NBA Standings 2013-2016 Seasons,” ESPN. young talent is necessary to prevent radical ing the chance to have a really high draft com, February 26, 2016. rebuilding efforts like those of the Sixers pick.19 No matter what direction the league 9. “Sam Hinkie,” basketball-reference.com, February 26, 2016. from happening again.16 goes in, there has been a growing consen­ 10. “Future Traded Pick Details,” realgm.com, The fear of more teams embrac­ sus that the current lottery system is broken February 26, 2015. ing the Sixers’ model is real. In the fall and provides the wrong incentives to team 11. Zach Lowe, “Checking the temperature of of 2014, the league attempted to pass re­ that are not championship contenders. ‘The Process’ in Philly,” ESPN.com, De­ form that would have shifted the odds of The Philadelphia 76ers present an cember 5, 2015. the fourteen non-playoff teams to win the interesting case study on the merits of stra­ 12. Ananth Pandian, “Report: Pelicans trade lottery.20 For example, the Timberwolves tegic losing and its place in the NBA. For Ish Smith to 76ers for two second-round who had a 25% chance to win the lottery now many teams believe the Sixers strate­ picks,” cbssports.com, December 24,2015. would now only have an 11% chance, as gy has a place in the NBA. Yet, for the good 13. “Elton Brand wants to give back, signs with 76ers to be mentor,” ESPN.com, January would the three other worst teams.18 After of the fans and the game of basketball the 5,2016. the bottom four, the odds would decline merits of the Sixers strategy should contin­ 14. “76ers add Mike D ’Antoni as associate head slowly with the best non-playoff team (the ue to be discussed and then - if needed - coach,” ESPN.com, December 18, 2015. Thunder last year) having a 2% chance of changed. 15. “NBA Attendance,” ESPN.com. winning the first pick (better than the cur­ 16. “The Business of Basketball,” Forbes.com, rent odds of around 2% to win any of the 2016. first three picks combined).18 Ultimately, an 17. Brian Windhorst, “ hire by alliance of the Sixers, Thunder, Spurs, and 76ers follows lobbying to NBA from own­ other smaller market teams banded togeth­ ers,” ESPN.com, December 8, 2015. 18. “Nielson Local Television Market Universe er to reject this reform.18 Nonetheless, the Estimates,” tvb.org, January 2016. league has continued to search for alterna­ 19. Zach Lowe, “The Case for the 40-Minute tives to the current model that many fear Game,” Grantland.com, September 10, encourages efforts like those of the Sixers 2013. to construct rosters that are intended to 20. Zach Lowe, “ 10 Takeaways From the NBA’s lose. Rejection of Lottery Reform,” Grantland. One radical idea is what has been com, October 22, 2014. called the “Wheel Proposal.”21 This con­ 21. Zach Lowe, “The NBA’s Possible Solution cept eliminates the draft lottery entirely and for : Good-bye to the Lottery, Hel­ lo to the Wheel,” Grantland.com, Decem­ severs the connection between draft order ber 23, 2013. and regular-season record. Instead, teams, in a predetermined order, would cycle through each of the thirty first-round draft slots once every thirty years. The order of the picks would be generated to make sure that each year a team selected players in Stephen Driscoll is a sophomore in the 1LR School. different areas of the draft to ensure equity. He can be reached [email protected].

Spring 2016 11 Rebranding The Premier League

Chudi Ilogu ‘19 was the most profitable in Premier League league. However, that is not even where history.1 The previous most profitable sea­ the change necessarily began, as 2012 also If you’ve ever followed soccer in your son was the 1997/98 season, where teams proved a year of change in the Premier life, you would know some of these clubs: (I might also reference them as clubs) League. Chelsea, Manchester United, Barcelona, showed an average profit of £49m. The For most Americans and non-En­ Real Madrid, Liverpool and Arsenal. These 2013/14 season dwarfed that, with the av­ glish viewers, Fox Soccer Channel was one are the 6 most popular clubs in the world erage soaring to £150m.2 What changed of the only channels to show the Premier (according to Forbes), 4 of which compete during this time? New investors dumped League weekly. That all changed when, in in the Barclay’s English Premier League, boatloads of money into previously aver­ 2012, NBC bought broadcasting rights to the top league in England. However, this age clubs, allowing them to sign new and the Premier League. Now soccer was avail­ past season has led to an upset of the tradi­ talented players, thus elevating them to the able to a wider audience and more easily tional hierarchy. As of writing this article, level of previous “super-clubs”. The main accessible to previous supporters. It should Arsenal is in 3rd place, Manchester Unit­ example of this is Manchester City Foot­ be noted that NBC has seen a 150% rise ed in 5th, Liverpool in 9th and Chelsea in ball Club. Manchester City had not won the in viewership since they began Premier 13th. At the top of the table? Leicester City, first division league title in over 10 years League coverage in the 2012/13 season.4 a newly promoted team. New sponsors or the League Cup (a tournament between This obvious increase in the popularity of have splashed their logos upon previous­ the 3 top English divisions) when they re­ the brand that is the Premier League has ly unpopular jerseys. Samsung’s Chelsea ceived a record breaking sponsorship of also been recognized by many corporations jerseys and AIG’s Manchester United kits £400m from Etihad Airways. That year, who have subsequently invested in adver­ are now “retro” collectable items, rather they hired a new, world class manager, and tising in teams within the league. This in­ than relevant replica jerseys. Things have bought 5 players who would become part flux of new (and predominantly American) obviously changed in the Premier League, of their starting 11 week in and week out.3 fans has also reshaped the support base for and though certain things like the jerseys Manchester City wasn’t the only team that clubs that were historically less popular. are less appealing, the actual competition received an investment bonus that year, as For example, since the 2012/13 season, of the Premier League has changed for the Manchester United, Tottenham and West Manchester City saw their fan base in­ better. Ham all followed suit. This type of spend­ crease by 423%.5 That amount of growth To begin understanding the rea­ ing can allow previously decrepit teams to was previously unheard of, especially with son behind the changing Premier League, become powerhouses in the league, creat­ a team that didn’t have a rich history. So, we must realize that the 2013/14 season ing a more competitive and entertaining we can accurately claim that the fans of the Premier League changed as well, growing in number and in support. If investments, broadcasting and wins weren’t enough, the Premier League has announced another change, due for the 2016/17 season. The Premier League recently redesigned their logo, going from the proud badge of a lion with a paw con­ fidently atop a ball, on top of the blockish font spelling “Barclay’s Premier League”, to a minimalistic design of a lion next to a more rounded font simply reading “Pre­ mier League”. This is the first time the logo has changed so substantially since 2001, when Barclays became the official spon­ sor, replacing Carling. Why is this signifi­ cant? It accents the overarching change that the Premier League is experiencing. Why have the old logo, reflective of a time that has clearly passed, when you can have a newer, “hip” one that your new audience While 47 clubs have competed in the Premier League since it's inception in 1992, only 5 members can call their own? The changing have won the title. of the logo makes clear a single point: the Photo courtesy of Beast Mode Soccer previous logo, and the history of the teams

12 Sports, Inc that came with it, are just that: history that doesn’t determine the future. With the decline of certain teams in domestic standings, coupled with their performance decline in international tour­ naments, the stature of the Premier League has obviously changed, so such a redesign is understandable. As I stated before at press time, Chelsea, one of the most his­ torically dominant teams in the Premier League, was in 13th place out of 20 teams. Leicester City, a historically 2nd division team, is on top of the league. This trend of the historic “greats” failing to live up to their history is now seemingly common­ place in the Premier League. This is even apparent in international competitions. In the European Champions League (the elite international tournament for the best clubs in the world), Premier League clubs have been floundering in recent years. Histori­ cally, the Premier League is the league with Leicester City currently sits atop the Premier League standings. This would be amazing for a team that was only recently in the Championship. the most winners and runners up. However, since 2012, no English club has made it to Photo courtesy of The Guardian the finals and they have also generally had a hard time qualifying for even the quar­ by the same 3 teams for a decade would be Works Cited ter finals. This could be due to a multitude stale and repetitive. I would even argue that 1. “Premier League Clubs Post First Pre-tax Profit for 15 Years - Premier League of factors: a harder domestic league thus following the Premier League has become 2014/2015.” MTN Football. Accessed making players more tired, an increase in purer, with “bandwagoning” becoming al­ most obsolete, as the league has become February 16, 2016. the talent of other teams, or rules regarding ibid full of upsets. Does it matter to me as a fan domestic players. The result, however, is 2. “Manchester City - Club Titles - Transfermar­ still the same: Premier League teams don’t that teams are doing worse in international ket.” Manchester City - Club Titles - Trans­ perform as well and aren’t feared in inter­ competition? Yes, but that is a small worry, fermarkt. Accessed February 20, 2016. national competition like they used to be. as the Premier League will remain a true 3. Futterman, Matthew. “Premier League Grow­ Why is that okay though? Let me use Chel­ fan’s bread and butter. The Premier League ing Cross-Pond Appeal Burnishes NBCU sea for example. In 2012, when they won is still the Premier League through all of TV Deal.” WSJ. October 28, 2015. Ac­ cessed February 20, 2016. the Champion’s League, they finished 6th this change. However, gone are the days of 4. Jefferson, Ben. “Man City’s Fanbase Grows in the Premier League, 35 points behind the fixtures such as the London Derby (Ar­ senal vs. Chelsea) defining the title race. 423% as Rivals Man Utd See Worrying champions Manchester City and runner up 19% Drop off.” Express Sport. Accessed Now, it is truly anyone’s league to win. Manchester United. They had stopped field­ February 20, 2016. ing their best 11 players in Premier League competitions in order to rest their stars for the Champions League. This left the Chel­ sea fan base to stop paying attention to the Premier League and for a generally worse competition, allowing lower teams to get easier points from playing Chelsea. This kind of sabotage of the league is avoided if teams aren’t expected to win international competitions, allowing for a more compet­ itive and entertaining league. The purpose of this article is not to reflect on the “good old days” (though as a Manchester United fan, I would love a re­ turn to said time), nor is it to argue that the new Premier League is worse for fans. In fact, I believe the Premier League was long Chudi Ilogu is a freshman in the ILR School. overdue for a change. A league controlled He can be reached at [email protected].

Spring 2016 13 Who's Really Being Punished?

Ben Gershenfeld ‘19 satisfied with the answer to the mert, and it was expected to be star tailback Silas Redd, had question: “Who’s really being unprecedented. a bevy of schools begging for College athletes can’t get paid punished?” The penalty was in­ his talents, and he transferred to right now, and they probably In 2012, news sur­ deed harsh: a $60 million fine to the University of Southern Cal­ won’t be seeing a paycheck for faced that Jerry Sandusky, a be paid over five years, a four- ifornia. But players with lesser their services anytime soon. longtime defensive coach for year postseason ban, five years talent were stuck in a no-win However, there is another Penn State’s football program, of probation, and a reduced situation. They either had to pressing issue in the world of had on several occasions sexu­ allotment of scholarships for transfer to another program and college athletics that affects ally abused children. An egre­ four years. Furthermore, Joe completely uproot their college millions of people each year gious and reprehensible act Patemo’s victories from 1998- lives, or they could stay at Penn and is a crooked system hurt­ alone was soon compounded 2011 were all vacated.1 But State and endure a coaching ing the wrong people. The exponentially when it was dis­ how was everyone involved change, a loss of resources, and labyrinth of NCAA sanctions covered that members of Penn affected? The most important a forfeiture of talent. The play­ and rule violations is as con­ State’s brass, both on an athlet­ group of people in any college ers, the backbone of the pro­ fusing as college astrophysics, ic level and an administrative football program— the play­ gram, who did not contribute but even the violations that are level, were aware of the crimes ers- had absolutely nothing to to the scandal in the slightest, slam dunks (in the sense of de­ committed by Sandusky and do with this scandal, but they faced heavy consequences. serving a punishment) seem to staged a cover-up to save the were affected immensely. After Penn State’s football leave players, students, and lo­ nationally-renowned and his­ news broke and sanctions were team is like a religion to the cal citizens significantly worse toric football program and its handed down, at least eighteen people of Pennsylvania and off, while coaches and admin­ beloved and iconic head coach Penn State players transferred beyond, just like University istrators with multi-million dol­ for the past forty-six years. In out of the program. A signif­ of Alabama is to the people lar contracts get off scot-free. I the weeks following the ini­ icant number of high school of Alabama and University took a look back at one of the tial reports, with news trucks students who were committed of Texas is to Texans, among most noteworthy NCAA pun­ camped out all over State Col­ to Penn State also pulled their others. But, as the people of ishments in its history— Penn lege, the country awaited a commitments and pursued oth­ Pennsylvania found out after State football in 2012— and punishment to be handed down er programs in the wake of the Penn State’s football decline, was both perplexed and dis­ by NCAA President Mark Em- scandal.2 Some players, like these major state universities

Jerry Sandusky being taken away by police. Photo courtesy of the abcnews.com

14 Sports, Inc. Works Cited 1. Matt Miller, NCAA’s sanctions on Penn State will cause harm statewide, Corbett’s lawyers tell U.S. judge, Penn Live, 20 May 2013. 2. A complete list o f Penn State’s departures, Philly.com, 17 October 2013. 3. Matt Miller, NCAA’s sanctions on Penn State will cause harm statewide, Corbett’s lawyers tell U.S. judge, Penn Live, 20 May 2013. 4. ibid 5. ibid 6. University Park Tuition, Penn State Tuition, 2014. 7. Jeff Greer, U o f L extends Piti- no’s contract, Courier-Jour­ nal, 9 June 2015.

How will the Penn State football scandal affect Joe Paterno's legacy and Penn State football players going forward? Photo courtesy of the Getty Images don’t only have a stake in the on the Penn State football pro­ Just recently, the Louisville citizens’ hearts-- they have a gram. basketball team was banned bigger stake in their econo­ The students who from the postseason tourna­ my. When the NCAA handed painted the Beaver Stadium ment, something that players down Penn State’s punishment, crowd blue and white each dream about participating in, the governor at the time, Tom weekend are also felt the brunt because of wrongdoing by their Corbett, was terrified of what of the punishment. Governor coach, who happens to make it meant for Pennsylvanians.3 Corbett expected tuition to rise around $5 million per year.7 He Referred to as an “economic in order to pay that $60 million will continue to make his mil­ power source for the common­ fine, and he was right. From lions and keep his job, while his wealth” by Corbett’s general 2010 to 2015, tuition for Penn­ players will be watching other counsel, Penn State’s football sylvania residents rose from athletes play in the postseason program generated $50 million $14,412 to $16,572.6 The tui­ without them. The NCAA is in revenue in 2010-11 and was tion increase negatively affect­ known for being harsh with its also responsible for $5 million ed students, not to mention the sanctions, but with the innocent in tax revenue that supported large amount of public back­ bearing the brunt of the punish­ approximately 2,200 jobs in lash towards the school and ment and the high-paid culprits the state.4 Both public and pri­ the ongoing media frenzy on finding their way out of trouble, vate sector jobs were affected. campus. The students ardently the question must be asked— While the loss in tax revenue supported their beloved school, “Who’s really being punished hurt state-funded jobs, private and then that same school be­ in college sports?” businesses like Penn State mer­ trayed them. chandisers, restaurants, and College sports bring hotels saw a steady decline in in billions of dollars of revenue revenues over the course of the each year and have a very en­ football program’s punishment. thusiastic and wide-ranging fan Ticket prices for games at Bea­ base. For those reasons, there is ver Stadium declined due to a little incentive to change. But I lack of demand.5 A state econ­ am confident that players will omy so dependent on a football start seeking more power, and program was not able to with­ if that power does not come in stand the economic chokehold the form of monetary compen­ Ben Gershenfeld is a freshman in the H R School. He can be reached at [email protected]. that the NCAA sanctions placed sation, it will come elsewhere.

Spring 2016 15 Major League Soccer: Best in the World by 2022? Jordan Isenberg ‘17 Major League Soccer’s histo­ els in Europe, expansion into with the level of talent. • ------• ry, all three television partners the global market may allow Homegrown talent Major League Soccer (MLS) will feature an exclusive MLS MLS to attract star talent from and youth development is an­ was established in 1996 with Match of the Week, provid­ the European leagues. other issue MLS must tackle a total of ten teams, was near ing soccer fans throughout the The acquisition of to become one of the best by bankrupt, and played all of country with a destination day star talent from the European 2022. MLS announced a part­ their games in borrowed sta­ and time for each network.2 Leagues has led to the success nership with the United Soccer diums. Today MLS has a total Soccer fans around the globe of MLS. Since David Beck­ League in 2013 to promote the of 20 teams at an average value can now watch MLS, causing ham’s decision to join the Los development and growth of of $157 million per team, with drastically increased viewer- Angeles Galaxy in 2007, the North American soccer players. 14 teams having constructed ship over the past few years. influx of star European play­ In 2015, nine MLS teams had a their own stadiums. The reve­ With a 50% increase in gross ers to MLS has included Frank reserve or second team compet­ nue of MLS has increased by viewership since 2013, MLS is Lampard, Andrea Pirlo, Steven ing in the USL.6 Some of the 52% over the past two years, becoming a global brand.3 Gerrard, Ashley Cole, Nigel de independent USL teams may increasing team value.1 With To be the best you Jong, Sebastian Giovinco, and become part of the expansion promising domestic and global have to have the best. The best David Villa. Each big name of eight teams into MLS. TV deals, incoming star talent, soccer teams have the best signing attracts large sponsor­ Each MLS team has increased corporate sponsors, players. They are located in ship agreements and leads to its own youth development encouraging attendance, and the best cities on the globe, pay large gate revenues. MLS ex­ program. Four different U.S. developing youth programs, their talent handsomely, and pansion teams like the LAFC Soccer Development Academy MLS sees itself as one of the have an intense fan base. Bar­ and Beckham’s Miami team alumni in the past few weeks best soccer leagues in the celona FC calls home its name­ are looking to sign Cristiano have experienced a first ap­ world. The question is...can sake in Spain, pays an average Ronaldo and Wayne Rooney to pearance for German giants MLS live up this title? salary of $8,680,569 a year, has contracts in 2017. Signing star Borussia Dortmund, a transfer In 2014 and 2015, an average of 77,632 people talent from the top tier in Eu­ to Chelsea FC, a record MLS MLS inked TV deals with both in attendance for their Primera rope would spur huge growth Homegrown contract and a international and domestic Division games, and employs to MLS. However, without U.S. Men’s National Team de­ outlets including Sky Sports, the best like Neymar, Suarez, signing a big name player MLS but.7 U.S. talent Christian Pu- Eurosport, ESPN, FOX, and and Messi.4,5 While MLS is no­ may struggle to balance the ad­ lisic at age 17 is becoming one Univision. For the first time in where near the competition lev­ dition of hundreds of players of the best young talents on the global stage. His quick rise to the first team on Borussia Dortmund speaks volumes to Bundesliga (Germany) 43.54 his talent and the talent of the MLS Academy program. Pu- Premier League (England) lisic made his first start in the Bundesliga February 21, 2016 against Leverkeusen. Primera Division (Mexico) While MLS is aspir­ ing to become one of the best, Primera Division (Spain) low TV ratings and competing leagues in Europe and China

Ligue 1 (France) may slow its growth. While the growth of MLS has been strong and con­ Serie A (Italy) sistent, a troubling issue arose after Labor Day in 2015. Gary

Major League Soccer (North America) 21.24 Stevenson, President and Man­ aging Director of MLS, was 20 25 30 45 50 troubled by a 15% decrease , Average attendance in thousands in TV ratings in the months Major soccer leagues worldwide ranked by average per game attendance in 2014/15 (in 1,000s) of September and October. A Graph courtesy of statistica.com

16 Sports, Inc. decrease in TV Ratings could force MLS to pay credits to advertisers as compensa- Seattle Sounders 50 tion-ESPN was forced to pay make-goods after low ratings from the College Football LA Galaxy Playoff. MLS must take action to repair the Portland Timbers decline in TV ratings to compete with the top European leagues. Toronto FC MLS may also struggle as a result of the sudden rise of the Chinese Super Sporting Kansas City League (CSL).. With their recent spending Houston Dynamo spree in the transfer window and the ac­ quisitions of Ramires and Jackson Marti­ FC Dallas nez, the CSL looks to rival the European leagues. Supported in full by the President New England Revolution Xi Jinping, China is hoping to become a true Philadelphia Union soccer nation. With a huge national popu­ lation, regulated youth development pro­ New York Red Bulls grams, and national funding, China looks to break into the existing global soccer Montreal Impact market. Fortunately for MLS, the growth of Chicago Fire the CSL has been slow; the skill level of the CSL is still overshadowed by MLS and the D.C. United European leagues. Former CSL and MLS player Ryan Johnson believed that the CSL Vancouver Whitecaps

“wasn’t at the same level as MLS, but the Columbus Crew level was pretty good.”8 If the CSL contin­ ues to grow and poach players from MLS Real Salt Lake and Europe, it will create undesirable com­ petition and diminish the growth of MLS. Colorado Rapids At the end of the 2015 MLS San Jose Earthquakes season, MLS Commissioner Don Garber made a bold prediction about the future 0 5 10 IS 20 25 30 35 40 45 50 55 Team revenue in million U.S. dollars of the league. “I will absolutely assure you whether it’s seven years, or its longer Major soccer leagues worldwide ranked by average per game attendance in 2014/15 (in 1,000s) than that, I may or may not be around, this Graph courtesy of statistica.com league will be one of the dominant leagues in the world in time... It has to be because Works Cited Mar. 2016. there’s so many things happening with the “What Does the Chinese Super League’s soccer movement. You have owners that Valuable Teams 2015.” Forbes. Forbes Ambition Mean for MLS?”ESPNFC.com. Magazine, n.d. Web. 17 Mar. 2016. N.p., n.d. Web. 17 Mar. 2016. are coming in that really believe in the 2 “MLS, U.S. Soccer Sign Landmark TV and 9 “MLS News: Commissioner Don Garber Cer­ sport, broadcasters that do, youth devel­ Media Rights Partnerships with ESPN, tain League Will Become One Of World’s opment that’s thriving, players that want FOX & Univision Best.” International Business Times. N.p., to play here from abroad.”9 With plans for Deportes.” MLSsoccer.com. N.p., 13 May 2014. 14 Nov. 2015. Web. 17 Mar. 2016. a 28 team league by 2020, promising do­ Web. 17 Mar. 2016. mestic and global TV deals, incoming star 3 “January 2016 Becomes Big Month for 2012- talent, and developing youth programs, Mr. 13 Development Academy Award Win­ Garber can mold MLS into one of the most ners.” - U.S. Soccer. N.p., n.d. Web. 17 successful soccer leagues in the world by Mar. 2016. 4 “Soccer Salaries - How Much Do Soccer 2022. Players Make?” The Soccer Mom Manual. N.p., n.d. Web. 17 Mar. 2016. 5 “Primera Division 2014/2015 - Atten­ dance.” Worldfootball.net. N.p., n.d. Web. 17 Mar. 2016. 6 “MLS Affifiliation.” USLSoccer.com. N.p., n.d. Web. 17 Mar. 2016. 7 “January 2016 Becomes Big Month for 2012- Jordan Isenberg is a junior 13 Development Academy Award Win­ in the Arts & Science School. ners.” - U.S. Soccer. N.p., n.d. Web. 17 He can be reached [email protected].

Spring 2016 17 Special thank you to Cornell Print Services

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