MLB sees a $640K per game loss without fans

Major League Baseball told players their prorated salaries would contribute to an average loss of $640,000 for each game over an 82-game season in empty ballparks, according to a presentation from the commissioner’s office to the union that was obtained by The Associated Press.

Painting a picture of a $10 billion industry shuttered by the contagion, the 12-page document titled “Economics of Playing Without Fans in Attendance” and dated May 12 was an initial step in negotiations aimed at starting the delayed season around the Fourth of July.

Teams say the proposed method of salvaging a season delayed by the coronavirus pandemic would still cause a $4 billion loss and would give major league players 89% of revenue.

They contend they lose more money with each additional game played. The players’ union, however, said it believes clubs would lose less money with more games. In addition, many teams and/or their owners have stakes in their regional sports network that would benefit from additional games.

Owners voted Monday to propose salaries be based on a 50-50 split of revenue, a framework players say is tantamount to the kind of salary cap they will never accept. Teams gave the players’ association their virus-testing plan Friday and have waited to make their economic proposal.

The New York Yankees alone would have $312 million in local losses when calculating their earnings before interest, taxes, depreciation and amortization. New York’s figure includes about $100 million in payments toward the bonds that financed new Yankee Stadium.

The Dodgers were at $232 million in losses, followed by the New York Mets at $214 million, Chicago Cubs ($199 million) and Boston Red Sox ($188 million).

Detroit would have the lowest negative EBIDTA — an accounting measure used to assess profitability — at $84 million, with Baltimore at $90 million, and Pittsburgh and Tampa Bay at $91 million each. Figures exclude distributions from the central office, which projects to collect $1.34 billion in media revenue. The figures were calculated by MLB and its clubs, and the frequently skeptical union already has requested a slew of documents from MLB.

MLB said 2019 revenue was 39% local gate and other in-park sources, followed by 25% central revenue, 22% local media, 11% sponsorship and 4% other.

Teams fear a second wave of the coronavirus would devastate finances if renewed government restrictions cause cancellation of the postseason, which brings in $787 million in media money. The document details who pays what: $370 million by Fox, $310 million by Turner, $27 million by ESPN, $30 million by the MLB Network and $50 million from international and other.

Teams project to increase their debt from $5.2 billion last year to $7.3 billion in 2020, leaving most clubs out of compliance with the labor contract’s debt service rule. MLB’S central office increased debt by $550 million to support clubs and is seeking $650 million more credit. MLB said many teams do not have the capacity to add more debt to fund losses in 2021.

MLB and the union agreed to a March 26 deal in which players would get a prorated share of their salaries during a shortened season. As part of the agreement, $170 million in salaries are being advanced through May 24. If the season is scrapped, players are guaranteed service time equal to what they accrued in 2019, a key to gaining eligibility for salary arbitration and free agency.

NFL

WANTED PLAYERS SURRENDER TO POLICE >> New York Giants cornerback Deandre Baker and Seattle cornerback Quinton Dunbar surrendered to police separately after being charged with robbing people of money and valuables at a cookout they attended.

Baker is charged with four counts of armed robbery with a firearm and four counts of aggravated assault with a firearm. He turned himself in at the Broward County (Fla.) Jail.

His lawyer, Bradford Cohen, said he has affidavits that will clear Baker.

A few hours later, Dunbar followed suit and turned himself in, according to Yahoo! Sports.

Dunbar’s lawyer, Michael Greico, also says he has such affidavits. WASHINGTON’S LATIMER FACING CHARGES >> Cody Latimer, a Washington wide receiver, is facing five charges, including felony illegal discharge of a firearm, following his arrest in Englewood, Colo., a Denver suburb.

The Douglas County sheriff’s office said deputies arrested Latimer, 27, after responding to a report just after midnight of shots fired inside an apartment. Deputies said they found three individuals in the apartment, one with minor injuries unrelated to a gunshot.

Latimer was taken into custody and is also facing charges of second-degree assault, menacing, prohibited use of a weapon and reckless endangerment. Latimer posted a $25,000 bond and was released later Saturday morning.

Soccer

BUNDESLIGA RESTART ONE FOR THE BOOKS >> Erling Haaland scored the Bundesliga’s first goal in more than two months and then celebrated. Alone.

The 19-year-old’s Borussia Dortmund teammates stayed away, mindful of the strict hygiene measures amid the coronavirus pandemic, as Germany’s soccer season resumed in unprecedented conditions.

Dortmund beat Schalke 4-0 in the first Ruhr derby to be played in an empty stadium. Calls and shouts from coaching staff and players, and the thud of the sanitized ball being kicked, reverberated around the mainly deserted stands.

Players had been warned to keep their emotions in check, and to desist from spitting, handshakes and hugging with the games keenly watched by the rest of the soccer world hoping to restart their own leagues.

Team staff, and players who didn’t start, wore masks. Substitutes took their positions in the stands, rather than beside the field, while balls and seats were disinfected. SWEDISH CITY WANTS ZALATAN STATUE MOVED >> The city of Malmo, Sweden, has had enough of the repeated acts of vandalism on star Zlatan Ibrahimovic’s statue outside the local football club’s stadium and wants it transferred to a new location.

The Sydsvenskan newspaper said that the municipal council in Sweden’s third largest city is poised to make a decision on Monday and is seeking suggestions from topflight team Malmo FF as to where the statue of the former Galaxy star should be moved later in the year.

Obituaries

FORMER BEARS HEAD MCCASKEY DIES AT 76 >> Michael Mccaskey, who led the Chicago Bears for nearly three decades following the death of his grandfather, George Halas, died Saturday after a lengthy battle with cancer, the team said. He was 76.

The oldest of Ed and team matriarch Virginia Mccaskey’s 11 children, Michael assumed operational control of the franchise in 1983 as president and CEO following the death of Halas, a founding father of the NFL and the franchise. Michael Mccaskey became chairman in 1999 and remained in that role until George Mccaskey took over in 2011.

The Bears made 12 playoff appearances and won the Super Bowl in January 1986. Michael Mccaskey was chosen NFL executive of the year by his peers following the 1985 title season.

FORMER SPORTSCASTER GEORGE DIES >> Phyllis George, the former Miss America who became a female sportscasting pioneer on CBS’S “The NFL Today” and served as the first lady of Kentucky, has died. She was 70. A family spokeswoman said George died Thursday at a Lexington hospital after a long fight with a blood disorder.

Bits & Pieces

NEW YORK TRACK OPENINGS >> New York will allow horse racing tracks and Watkins Glen International car track to reopen with the easing of the coronavirus outbreak.

But Gov. Andrew Cuomo was quick to add a caveat: “No crowds. No fans.” BOWMAN STAYS WITH HENDRICK MOTORSPORTS >> Alex Bowman signed a one-year contract extension to remain with Hendrick Motorsports through 2021.

LIM HEE-JEONG LEADS AT KLPGA CHAMPIONSHIP >> Lim Hee-jeong shot an 8-under 64 for a threestroke lead after three rounds of the KLPGA Championship. She was followed by Park Hyunkyung (67) and overnight leader Bae Seon-woo (72). Lim was at 15-under 201 overall at Lakewood Country Club in Yangju.