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A fan of the Yankees, Red Sox, and large sample sizes.
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4.05.2004
A TRIP TO THE MARKET SIZE The local sports talk guys were discussing market size on my drive home today. I've always been amazed at how willy-nilly the terms "large market" and "small market" get thrown around. They're always used as antonyms, but the meanings change more often than an Oakland closer. Sometimes it's "successful" versus "unsuccessful". Sometimes it's "high-payroll" versus "low payroll". Sometimes it's "holy" versus "evil". And sometimes it's "open-pocket owner" versus "spend-thrift owner". But rarely do people use the terms to describe what they should - the fact that some teams have a large population of local people to support their teams and some have a small population off which to feed. As Derek Zumsteg points out in this fine article, there are other factors (like general interest in baseball and per capita income) that affect how much money can be gleaned from a metropolitan area, but in general, it's the population that matters. (Another great series of articles to check out are Doug Pappas' Behind the Numbers pieces. Here's a link to the seventh article, which has links to the six previous articles. There's supposed to be an eighth, but I can't seem to find it on Google.) Following is a table from the Zumsteg article (which you really should read), resorted in decreasing order by adjusted population. (Adjusted population divides the LA, NY, and SF markets in half for each team.)
This analysis has been presented many many times by many many people. But it's even a good kick in my pants each time I see it. The order of this list is not what most people would guess off the tops of their heads. We should not be penalizing teams for spending lots of money. Revenue sharing should be based on market size. If you're in a big market and spending lots of money, good for you. Just share some of it. If you're in a small market and spending next to nothing, you shouldn't be rewarded for having a crappy team. It's the small-to-mid markets who are spending money and succeeding on the field that should get the most money from revenue sharing. MLB should reward the teams that are doing everything they can to win, and not the owners that spend nothing and just pocket the revenue sharing money coming their way.
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