It has been a wild 2014 baseball postseason replete with comebacks, walk-offs and fielding gems aplenty. Last night was more of the same when journeyman Travis Ishikawa launched a three-run, walk-off home run in the bottom of the ninth inning to send the San Francisco Giants to their third World Series in five years. The hit set off a raucous celebration at home plate and in the stands of
Despite the playoff drama, teams are not cashing in as in years past because the winners are making quick work of their opponents. There have been only 25 playoff games this fall versus a potential of 36 games (last year their were 32 games in the first three rounds). The three American League series all ended in sweeps, and we have yet to witness a winner take all game.
The lack of games means fewer fans in the seats and less beer and food bought at the concession stands. But team profits are also limited because of the way baseball's playoff revenue sharing system works. MLB's Rule 45 calls for 15% of all postseason game receipts to go to the commissioner's office. In addition, teams must contribute 60% of remaining receipts for the first three games of the Division Series and four games of the League Championship Series to the Players Pool. This pool is distributed to players on postseason rosters with the World Series winners receiving 36% of the total pool to divvy up (50% of receipts from the Wild Card games also go to the pool).
Teams jack up ticket prices in the postseason, which can lead to massive profits when series go the distance. The Kansas City Royals' average ticket price during the season was $25, according to Team Market Report, but playoff ticket prices started at $28 for the Royals' Wild Card game and rose to $345. They'll range from $100 to $420 for the World Series for season ticket holders (the Giants set Series prices at $275-975). However, teams don't start making fat profits in the playoffs until after they've played the bare minimum of games in a series. The Royals have run off a record eight straight games to start the playoffs. Playing the maximum number of games in the Division and Championship Series would have boosted profits at least $5 million for the Royals. MLB is flush right now, but the Royals, who lost $6.5 million in 2013 by our count, could use every dollar. The broadcast networks, TBS and
The players, whose salaries run through the regular season, are also heading for smaller checks from a diminished Players Pool thanks to the absence of some of baseball's big market teams. A full playoff player share last year for the champion Boston Red Sox was worth $307,323. It was a record $370,873 per share when the Giants won the World Series in 2012 in a postseason when the New York Yankees reached the League Championship Series. The Players Pool will suffer this year from the absence of the Red Sox and Yankees, who generate the highest gate receipts per game in the sport.
Even if the Royals don't make a mint in their first postseason since 1985 , they will cash in next year with better pricing power on tickets, suites and sponsorships. Their magical playoff run is also attracting new fans, who will turn out at Kauffman Stadium in 2015. Attendance jumped 12% this year and was the highest since 1991. Everyone loves a winner.
