How Teams Make Money When They aren't Winning Games
When baseball teams aren’t winning their games, it’s sometimes difficult for them to find ways to make money. But with the flowing economics, teams have found ways to make more money. I used the articles Investotopedia and espn, which are both reliable, because investopedia understands economics aspect and espn understands the sports aspect. Teams use different tools and tricks to create and make more money for themselves to become a better team, especially when they cannot make money by winning games.
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Baseball teams can use things like TV deals, which have certain channels to cover their games specifically, which pay money to always have the teams support. Also, since most people watch baseball live, the channels can incorporate commercials within them without having people skip through them. Local channels can also support their local teams, such as a specific Chicago channel always covering and supporting the Chicago Cubs, which gains the team more local fans which are able to go to games and support them financially. Teams can also use agreements or sponsorship's to supply them with more money, such as nike or adidas which pay for players to wear their merchandise, along with players endorsing the merchandise for more money. Authentic jerseys that can cost a lot of money also raise money for the teams through agreements. Lastly, name brands advertised in stadiums bring more money in for the companies, and advertising brings a lot of money in for the teams.
Inside the stadium, people want concessions, and since people have to eat at games, the concessions “can bring in millions of dollars annually, even brought in $53 million for the Yankees in 2013,” which is one of the huge factors for making more money within the stadium for a team. Teams can make concessions more expensive since people want beer, water, peanuts or food to eat during a baseball team. Improving stadiums and their experience can draw in more people as well as money, because a cooler, more unique baseball stadium may make people want to go visit it, and a better stadium experience would also be better, drawing more people in to see it. Lastly, stadiums have things like Pay-for-play, or games where people pay money to win prizes, like a lottery game, or a type of game where people can be interactive with the stadium. This can bringing in revenue to the team by inviting people in to bring more money into the team.
