Sunday, December 9, 2012

Is there major league benefit to minor league baseball?

If the city of Ocala decides to help the Yankees move their Class A-Advanced minor league team here from Tampa, the decision will likely hinge on whether it is a good deal for the community.

But researchers say Ocala will have to look beyond the team's direct economic impact to make that decision because Minor League Baseball, in itself, does not generate a lot of jobs and doesn't attract millions of fans like a Major League team.

That doesn't mean Minor League Baseball can't be an economic driver, however.

A minor league stadium erected in the right location could revitalize an area or open up undeveloped land, both of which could be catalysts for new homes, businesses and jobs, researchers say.

And having a stadium and a baseball team like the Tampa Yankees could bring some cache to a town and engender civic pride that could be attractive to companies looking to relocate. At the very least, it could provide the community with new, affordable family entertainment and a venue for other events.

It is those ancillary benefits, researchers say, that may make a community's investment in Minor League Baseball worthwhile, even if it is not a big job creator or money-maker.

“You're never going to notice it's there economically,” said Roger Knoll, professor emeritus at Stanford University's Department of Economics. “It's too small and too unimportant. A Single A team is lucky if it draws 1,000 (fans) a game. It's not even as big as high school football.”

The Yankees and the city have been tight-lipped about their discussions to bring a farm team here. Ocala officials have said only that the talks are in the early stages. It is not known where a stadium would be built, who would pay for it or what other commitments of public dollars the Yankees would be asking for.

But Steve Densa, Minor League Baseball's executive director of communications, said when all the costs and benefits are calculated, minor league teams have a positive impact on communities.

“A MiLB (Minor League Baseball) club brings money to the area in the form of housing and/or hotel nights for the home club and the visiting one, coaches, scouts, umpires and various Major League personnel who visit each one of their affiliates during the season,” Densa wrote in an email. “There's also business generated for restaurants for these people as well. Other businesses may pop up around the ballpark, which may have not done so if there isn't a stadium. The ballpark is a community asset and can be used to attract other events throughout the year, such as concerts, fairs, holiday events, etc., that add to the quality of life of the community.”

The Tampa Yankees, like other Class-A minor league teams such as the Lakeland Flying Tigers and the Daytona Cubs, belong to the Florida State League. The Flying Tigers won the Florida State League's championship this year. Attendance at the final championship game at Lakeland's Joker Merchant Stadium, which holds 8,500 spectators, was 400 people.

“There were 398 and my wife and I,” said Bill Tinsley, the city of Lakeland's liaison to the Tigers and manager of financial resources. “The intent of minor league operations, typically, is that you don't lose money, that you break even and you provide some additional quality of life for your city.”

Breaking even, he admits, is no guarantee. There are considerable costs to a community, like the $35 million to $40 million price tag to build a minor league stadium.

“We're so different because we have spring training, which kind of covers the bills,” Tinsley said. “Spring training is huge.”

The Yankees are not considering moving their Major League New York Yankees' spring training to Ocala.

Tinsley said Lakeland “pretty much” breaks even on Minor League Baseball. He said the team and the city share expenses. Lakeland estimates that each Flying Tigers game costs the city $145 for utilities and field maintenance.

The city receives 15 percent of ticket sales and 15 percent of concessions, or a minimum of $125 a game from the team.

A minor league ticket costs between $5 and $7, although on nights when a business sponsors a game, a ticket could cost as little as $2. And if Tinsley can rent the stadium when there are no games, he receives $150 or more a night. The Flying Tigers' total 2012 attendance was 59,589. It averaged 1,027 fans a game for the 58 games it played.

The Flying Tigers do not pay to use the stadium, but the big league team pays Lakeland $325,000 a year to use the stadium for spring training, which helps offset the costs of the minor league team.

Knoll, of Stanford, said the Lakeland model works because the city uses the stadium for events beyond baseball.

“There's no real return on that investment to the city itself unless it's going to use that facility for lots of other things,” Knoll said.

Knoll said that in Stockton, Calif., the stadium is used by the local high schools.

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