Collin Olsen
Mrs. Straub
AP Economics
2 November 2015
Impact of the World Series on the Mets
Every October the end of baseball season comes around. As the weather gets colder fewer and fewer teams move on through the postseason. Eventually 28 teams fall short and begin to look forward to next season, and the last two battle it out for the world series trophy. Many see the World Series as the ultimate matchup between the two best teams in the league. However there is a deeper more complex impact than the simple sports marvel of this series. An impact that only the teams, city, and the league itself can feel. This is the impact of economics on the World Series.
Let’s start with the Mets. From one of the worst teams in the league to suddenly playing in the world series this team came out of nowhere and many are still wondering how they did it. The truth is they developed young players over a number of losing seasons hoping that they would pan out to a successful group of younger players that could compete for a championship. These younger players often had a low payroll resulting in less expenses for the team. In fact they had a payroll of about 73 million dollars that ranked 23rd in the league (“MLB”). Unfortunately as the Mets struggled the past few years, they also experienced less people coming to their stadium. This resulted in less revenue for the team, ultimately generating less profit. This is very odd for a team especially considering they are in New York. The other New York baseball team, the Yankees, have one of the highest payrolls in the league and manage to sell out most of their games. In turn they are able to generate more profit and have a higher payroll. Many say that this is because of the modern stadium that the Yankees have, and because of this the Mets built a new stadium that begun construction in 2006 (“Citi). Although this was aimed to generate more revenue for the team, all it did was leave them with even more debt and a slightly larger attendance rate.
So now the Mets are in debt from building a stadium, have a low salary team, and have a total income slightly below their expenses. The Mets were expected to lose 10 million dollars this year, but after the championship series they are estimated to profit nearly 45 million dollars and that isn’t including ticket revenue as well. In addition to this they are expected to rise in attendance next year simply from their growing success this year. This growth in revenue from their success this year will result in a higher payroll and continued success in the coming years.
Overall as the Mets continue to grow the demand for baseball from their fan base will rise and continue to grow all because of their sudden emergence in the World Series this year.
Works Cited
Barrabi, Thomas. "World Series 2015: New York Mets' Championship Run Could End Payroll
Restrictions." International Business Times. IBT Media, 27 Oct. 2015. Web. 02 Nov.
2015.
"Citi Field Time-Lapse Construction Gallery." New York Mets. MLB, 30 June 2014. Web. 02
Nov. 2015.
"MLB Salaries." CBSSports.com. CBS Interactive, 2015. Web. 02 Nov. 2015.
"World Series: Mets Rip Royals In Game 3." CBS New York. CBS Radio, 30 Oct. 2015. Web. 02
Nov. 2015.
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ReplyDeleteI thought that the topic was very unique and I think you did a great job applying the subject to economics. Although I don't pay attention to the baseball world as much, I find it interesting how the corporation is run. It seems like every decision that is made can result in great success or failure for the team. It would be interesting to see the history of each of the teams and see what decisions lead to an increase in attendance or what dynamic works best for each team. It is understandable how demand increases for a team when it does well, however I think that there are some exceptions. If we were to relate it to the Packers and their fan base, the fans are usually supportive no matter how the season goes. In this case demand would stay relatively inelastic for the packer fans.
ReplyDeleteI thought that this post was an interesting topic. I think that you made some good points throughout the post about how the World Series generates positive economic returns for the teams. I think it would have been nice if you would have expanded more on your points that you made. I think there are some exceptions to your claims because the Yankees have been the best team in New York for a while and will continue to bring in more revenue then the Mets. However, there probably were some flukes in the numbers for the Mets because a lot of New York fans jumped on the bandwagon to support their hometown, but in the long run, those fans that bandwagon jumped will eventually go back to the Yankees. This will cause the Mets to continue to lose revenue unless they solidify themselves as the best team in New York.
ReplyDeleteIt is interesting because, usually the teams with the higher payrolls are the teams that are going very far in the playoffs, but now teams are doing what the Mets and Royals are doing which is building a team from young players at it saves a lot of money and it makes small teams able to compete with the big one. There is no doubt that the attendance for Met games is gong to increase next year, because the fans are going to be thirsty for a championship so this season alone is going to help the franchise substantially. They might start hurting the Yankee tickets because people are going to want to go to a Mets game. So this could also hurt the Yankees.
ReplyDeleteIt is interesting because, usually the teams with the higher payrolls are the teams that are going very far in the playoffs, but now teams are doing what the Mets and Royals are doing which is building a team from young players at it saves a lot of money and it makes small teams able to compete with the big one. There is no doubt that the attendance for Met games is gong to increase next year, because the fans are going to be thirsty for a championship so this season alone is going to help the franchise substantially. They might start hurting the Yankee tickets because people are going to want to go to a Mets game. So this could also hurt the Yankees.
ReplyDeleteIt is cool to see such a small market team making it so far into the playoffs along with the Kansas City Royals. It is hard to believe that the Mets such a big organization could be expected to go so far into debt in just one year of probably being an average team. It is nice to see small market teams such as the Mets get more income to see them start winning more often and making the MLB possibly more competitive, which is what the MLB needs since baseball is a dying sport that is not very enjoyable to watch.
ReplyDeleteI believe this is a very interesting topic, and a fun one to read. There are a lot of positive economic "growths" for the Mets this year, due to the fact that instead of it being the Yankees, it was the Mets being the big name for New York this year. That caused a lot of people to jump ship, and join the Mets bandwagon, generating a lot of revenue. My only concern is will that last? The Yankees are historically the better team, and generate around the most revenue every year from sales, so was this a fluke that people were "Mets fans"? Or was this the start of a new era.
ReplyDeleteBeing from New York, the Mets are always competing with the Yankees in almost every aspect of the game. Whether it is an actual game or who can sell out the most games, the Yankees usually win. But since the Mets' recent surge of power I think the Yankees might begin to have some trouble keeping their lead. When a team makes it to the World Series, or better yet wins it, tons of attention is drawn to said team from baseball fans across the country. With more attention comes more people in the stands and a constantly increasing popularity.
ReplyDeleteThis is a very interesting topic and you tied in economics with it very well. I don't watch baseball very often, if ever, but I have been to a few Brewer games throughout the years, and it seems the same way for them. They've made countless attempts at a young championship team but never seem to come close to playing in the World Series, and because of that the stadium is rarely ever filled; and yet when they made a nice playoff run a couple years back, the stadium was packed top to bottom. It's a very bandwagon sport. Now that the Mets have this young championship caliber team, the attendance rate will substantially rise, more merchandise will be purchased, and an overall increase in profit.
ReplyDeleteThis is a perfect example of how consumer tastes changes the demand curve. The team does more successful, which gets more people interested, and thus gets more people to buy tickets and other merchandise.
ReplyDeleteI think the topic is interesting, and a lot of people can relate to it. I don't know much about how everything in the MLB works so this post really helped me out with that. In addition, I found it interesting how a team from New York could have such a low budget, whereas the other New York team has a lot of money. I found it interesting that a team with as little money as the Mets have been able to make it so far in the playoffs.
ReplyDeleteWhen taking a first glance at this I thought to myself, "the METS!" and looking to this I had no idea that the Mets were the worst team. It is very surprising how to they have made it to the World Series. I do think as of right now the Brewers were the ones who are not the best in Major League Baseball. You did an excellent job of putting in the financial aid on how much they are making, but I do believe that you could have incorporate the Brewers a little more and make some conflicting viewpoints with this. Having said that, you have mentioned about the Met's and the Yankee's. I agree that they are all from New York, just the same way New York Giants and the New York Jets are the same. It doesn't make sense why they are two different teams if they are from the same state. This could save a lot of money towards the teams and the company (MLB). Overall I enjoyed your topic and the picture and this was very well organized so very nice work.
ReplyDeleteThis was well written and was information packed. It gave a lot of background knowledge and it was just an easy read. You are defiantly correct about the Mets increasing the demand for baseball. I don't know anything about baseball and this is great to hear, an bad team changing the players around and developing a new team changed there outcome. Now after winning the World Series the revenue for the team should increase. If the Mets keep up the good work the Yankees are going to be in competition with the Mets.
ReplyDeleteI find the fact that the Mets were suppose to lose money this year to be very interesting! Since making the World Series, their profit going to 40 million dollars is amazing! This really shows how important the World Series is to the game (in the economic perspective). I wonder how much the Royals won from winning the world series? Not only will they get income coming in from the World Series games, but also the fan merchandise they can sell to make even more total revenue. Collin, good job with this writing piece and I'm interested to see what happens in the future for both the Royals and Mets.
ReplyDeleteI find this interesting. Even through the MLB doesn't have a cap for players but depends on where the team is located. Every team is different because of the city and the profit they generated during the season. The Royals are a good team they might gain more profit for next because of the winning the World Series. I am very excited to see if these 2 teams will ever be in another World Series game.
ReplyDeleteI did not expect such a large increase in profit. From an anticipated 10 million dollar debt, I would have expected maybe a one million or so profit, if profit at all. It definitely shows how something like the World Series can affect the income of those teams involved.
ReplyDeleteThis year was a very important year for the New York Mets because they finally got to be the top New York team for once and made a lot of revenue doing so.Since the Mets were the team from New York this year and make it to the world series, many Yankees fans wen out to buy some Mets merchandise so they can join the New York bandwagon. Although the Mets had a good year this year, I think that the new fans will go back to being yankee fans at the start of next year.
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