FanShot

Toronto Star on the Blue Jays, Payroll and TV Rights: Getting it Right

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On the heels of the Bruce Dowbiggin's back-to-back epic failures to understand basic business sense in relation to Blue Jays payroll and TV rights, Morgan Campbell of the Toronto Star has a piece in today's newspaper touching on the same subject. Except he actually bothered to do some research, contact an expert (a professor, Thomas Hubbard of Northwestern University’s Kellogg School of Management). You know, all those basic things one should expect of a journalist. And as a result, Campbell absolutely nails it. There's also some good sense on when adding big free agents make sense in terms of making the playoff push. The money quotes: - It’s about how much that player adds to my revenues relative to how much they cost, and that’s true whether you’re paying $10 million or $100 million," says Hubbard. A basic understanding of Economics 101! Bam! - "The Jays are in a good situation because if they have a good team and ratings increase 10 per cent, it goes right into (Rogers) pocket," Hubbard says. "The fact that it goes in the left pocket is just as meaningful as if it goes in the right. Same pair of trousers." Understanding that paper dollars don't mean anything! - Published reports estimate Sportsnet pays the Jays $36 million a year for broadcast rights...sports business veterans point out that the only thing more profitable than selling broadcast rights to the highest bidder is owning – or sharing an owner with – the network that broadcasts your team’s games. Understanding business synergies through vertical integration - bonus! A triple play! Quality journalism based on factual research and talking to experts who understand - it's almost enough to bring tears to me eyes.

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