OPINION

When It Comes to the Owners, Follow the Money

Written by Gary D. Benz
Published February 28, 2008
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Most expect Zell to sell the Cubs sooner rather than later if only to retire some of the massive debt he took on to buy the Tribune Co. in the first place. But Zell is letting it be known now that he will sell the Cubs when he's good and ready and, by the way, he plans to maximize his recovery by selling the Cubs and Wrigley Field separately.

There is good reason for Zell to wait and to sell separately. According to Forbes, the value of the Cubs franchise has been increasing at an average annual rate of 14% and increased a whopping 32% just between 2005 and 2006, not atypical figures whatsoever in either baseball or football. Needing money is one thing, but given these returns it compels Zell to wait a little longer to sell. In the meantime, why not create a tidy little revenue stream by selling the naming rights to one of the most famous stadiums in the world? For an owner more interested in money than history, it makes perfect sense.

For the baseball purist out there, Zell's plans may be sacrilege but don't blame Zell. Baseball's ownership fraternity has never been all that keen on sharing revenue among themselves and thus it's not a surprise that left to their own devices things like this would happen. With baseball having created an economic mess of itself for the last several years with no appreciable end in sight, now is hardly the time to begrudge even Sam Zell from making a little more money on the backs of fans. There are much bigger issues to solve in that sport first.

At first blush, it seems that's what Jones and at least 23 other of his fellow owners are trying to do by opting out of the labor contract early, solving the big problems. Under its terms, the NFL's collective bargaining agreement is supposed to expire after the 2012 season. But either the owners or the union can opt out of the final two years by giving notice by November 8th of this year. If that occurs, 2010 becomes the final year of the contract and it would be sans a salary cap.

But lest anyone think that this tactic has anything to do with eradicating the sport of a salary cap, think again. Though the owners once fought the concept, the presence of a salary cap does, from their perspective, achieve the desired result by acting as a sort of lifeline to those among them who would otherwise try to scale a mountain they have no business climbing in the first place.

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Gary is writer based in Akron, OH. His take on the long-suffering fans of Cleveland sports can be found at Wait 'Til Next Year, Again (nextyearagain.blogspot.com) or The Cleveland Fan (www.TheClevelandFan.com). Please feel free to send your questions, comments, concerns or criticisms to GDBenz@roadrunner.com.
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When It Comes to the Owners, Follow the Money
Published: February 28, 2008
Type: Opinion
Section: Sports
Filed Under: Sports: Baseball, Sports: Football (American)
Writer: Gary D. Benz
Gary D. Benz's BC Writer page
Gary D. Benz's personal site
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#1 — February 28, 2008 @ 07:39AM — Tuffy [URL]

Ticket prices are not set by player salaries. Ticket prices are set by demand. Demand is created by winning.

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