azsouthendzone said:
I can't say who I heard it from, but it sounds pretty legit that the Miners will be done if not the whole league. I hope it isn't true. Start up leagues need to go through the growing pains.
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San Francisco Business Times article
New league hits, scores
Fans, sponsors - and Rickey
08/01/2005
Eric Young
The Golden Baseball League is recording some impressive victories in its rookie season.
The new minor league has lined up $4 million in sponsorships and is close to reaching its first-year attendance goal. And it's gotten some additional buzz from having a marquee player, former Oakland A's star Rickey Henderson.
In achieving some early success, professional baseball's newest minor league has made a strong case for its unique business model. Unlike most minor leagues, the Pleasanton-based Golden League owns all its teams and the contracts of its players as a way to control costs. In another break from traditional minor league business, the Golden League is independent. That means it has no affiliation with Major League Baseball and is not bound by major league rules about where teams can play.
The league, which began play in May, was launched at an advantageous time in the evolution of minor league baseball. Attendance at minor league parks increased to 40 million nationwide last year and the values of teams can reach $20 million.
With financial backing coming mostly from Bay Area investors, the Golden Baseball League has teams in seven cities in California and Arizona plus one traveling team from Japan. As a single-A league, it's on the lowest rung of the minor leagues
The brainchild of two Stanford University business school graduates, the Golden League markets itself as an inexpensive alternative to the high-priced games of Major League Baseball. An $11 ticket at a Golden Baseball League game gets you a seat so close to home plate you can hear the batter pop his gum. That same seat at a San Francisco Giants game runs $72.
Fans are responding to the Golden League's bargain appeal. With about two-thirds of its 90-game season complete, the league is on pace to draw at least 460,000 fans. League officials set a first-year attendance goal of 500,000. The top drawing team is in Chico, 170 miles north of San Francisco, which averages more than 2,000 fans per game. Teams also play in San Diego, Fullerton and Long Beach and in the Arizona cities of Yuma, Surprise and Mesa.
Lower priced concessions are as strong a draw as the game. Beer in Chico goes for as little as $4, compared with $7 or more at some big league parks. Plus the Golden League parks feature a variety of diet-busting food such as tri-tip sandwiches and polish sausage with the works that sell for around $5..
"Sure, a baseball game breaks out every day, but that's not why people come to the park," said Chris Holen, Chico's assistant general manager. A winning team is important, he said, "But it's not the most important thing. It's probably more important that the tri-tip sandwich was good."
Among the Golden League's most crucial plays was lining up sponsorships that will total $4 million this year. The league's marquee deal is with Safeway Inc. The grocery chain agreed to a three-year, $1 million deal with the league that gave the startup league needed cash and cachet. Southwest Airlines also joined as a league sponsor and teams have reached local deals with companies such as Holiday Inn, State Farm Insurance and Amtrak.
In baseball, luck never hurts. The Golden League got some in the form of Henderson, Major League Baseball's career leader in stolen bases. League officials lobbied the 46-year-old to play in their league as he pursues a goal of once again playing in the majors. He signed with the San Diego team, prompting precious early-season publicity for the league in major newspapers, on ESPN.com and on TV. The rest of the league features unknown players, some of whom have previous minor league experience.
The Golden League's first year has not been error free. The league said a team from Tijuana, Mexico, would play this year. But that team's stadium lease fell through just two months before Opening Day. The league scrambled for an eighth team to fill out the competition. With little time to spare, a team of Japanese players agreed to join the league for a year.
While its strong start is encouraging, the Golden League needs to keep the turnstiles clicking to nail down long-term success. The league wants an average of 1,800 fans per game to break even by the third season.
So far this year, games are drawing an average of almost 1,300, based on a review of published attendance figures. But cities like Surprise and Mesa are not averaging 1,000 fans. In cities like Long Beach and Fullerton, the Golden League is competing against nearby Major League teams, which receive the bulk of local sports media attention.
Other factors could challenge the Golden League's business model. The single-ownership format -- designed to allow profits from some teams to prop up losses from other teams -- has been tried and abandoned in other places.
Consider the Central League, an independent minor league system with teams in Texas and Louisiana. The Central began in 1993 owning all its teams. But some money-losing teams were too much of a drag on the league's finances. League owners eventually sold all but two of its eight teams to raise money.
Golden League officials, while acknowledging the challenges, are busy planning for next year. League officials are in discussions to place a team in the Bay Area. The league is talking with Pleasanton, where its headquarters are located, and six other cities, said Chief Executive Dave Kaval, who founded the league with president Amit Patel. Kaval said a Bay Area team appeals to the league's investors, most of whom live in the region.
Backers include venture capitalists like Tim Draper of Menlo Park's Draper Fisher Jurvetson. Other investors include executives from Cisco Systems Inc. TV personality Pat Sajak of Wheel of Fortune fame also contributed to the $5 million used to finance the league.
Before the first year wraps up on Aug. 30, Golden League officials hope their low-priced, intimate brand of baseball continues to appeal to people like Mike Antolock of Chico. A regular at Chico's games, Antolock enjoys the familiar environment.
"The ushers know you. The owner of the team knows you," Antolock said. "When the team wins, I win."
Eric Young covers sports for the San Francisco Business Times.