THE FINANCIAL STRUCTURE OF MINOR LEAGUE BASEBALL
This research examines the financial structure of minor league baseball. The findings of this research are presented in relation to revenues, expenses, and characteristics of a viable minor league city. Purposefully omitted from this examination are detailed considerations of the antitrust exemption granted to baseball, the Player Development Contract, and the Professional Baseball Agreement, although it is necessary to explain what these phenomena are, and, how, if at all, they are to be considered in this research.
The Professional Baseball Agreement is a contract between the American and National League baseball clubs (the majors), on the one hand, and National Association of Baseball leagues (the minors), on the other, and covers all major-minor league matters (Sands and Gammons, 1993, p. xx). With respect to this current research, the significant aspect of the Professional Baseball Agreement is that the contract specifies the level of financial subsidies that are provided by major league clubs to the minor leagues, as well as the arrangement by which major league clubs share in minor league revenues (Zimbalist, 1992, p. 113). Thus, while the negotiating positions of the parties to the Professional Baseball Agreement, the equity of the provisions of the agreement, and so forth are not relevant to this current research, those elements of the contract that directly affect minor league baseball revenues and expenses are considered in this examination.
The Player Development Contract is a generic name applied to the specific contracts between major league clubs and the minor league affiliates of those clubs (Sands and Gammons, 1993, p. xx). These contracts cover working conditions between major league clubs and minor league affiliates. With respect to this current research, the significant aspect of the Player Development Contract is that su...