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MiLB Ownership Dreams

I play the lottery when it reaches $100 Million because I love to dream about the opportunity to run a minor league baseball team and do it my way. I have spent all of my professional career managing relationships, so most of my time plotting is spent on people – how to treat corporate partners, consumers, employees and players.

Corporate Partners
I think that most teams already do a very good job of making their corporate partners happy – they are a lifeline of the business. What the Cleveland Browns did last fall with Bud Light to unlock a refrigerator full of free beer after their first win of the season was brilliant. The Browns took advantage of this opportunity as an improving team to partner with Bud Light and created likely the best sports promotion of the year following a season of ineptitude in which the Browns were 0-16 and had their fans in upheaval. This promotion involved the Browns, Bud Light and a variety of agency partners to fulfill the idea, but that is the combination for success. Fans loved it because they had free beer to be excited for in addition to winning a game. These types of relationships should exist on the minor league level too. It’s just unlikely that the promotions will receive national attention. Several promotions each year should draw local interest and if good enough, may catch a national audience.

Having teams that are very much involved in the process and come to the table with ideas about how to showcase their relationships are going to be the most successful. Sponsorship cannot be just about taking someone’s money in return for slapping a logo on a wall, it needs to develop a voice so that the fan can hear and understand it and be reminded the next time they make a purchase decision.

Consumers
The other lifeline of the business are fans. What is very different about minor league baseball is that the parent club is responsible for fielding the team, so there is very little that the team can do to affect wins and losses. Coming to a game is about the experience of being at a ballpark more than about the outcome. As such, it is very important to provide fans with unique experiences that they can only get in the ballpark such as:

-        Premium Seating, in other spaces around the ballpark, it is important to have some niche areas with purpose. A few luxury boxes would be useful for corporate clients and large groups, but the number of suites would not need to be too many. In other underutilized areas of the park (many do this in the outfield), it would be part of the experience to build out a bar viewing space so that fans can mingle and still have views of the game.
-        Sitting close to the action, for baseball fans – minor league baseball is an inexpensive opportunity to buy the best seat in the house for a reasonable amount of money. I just checked that seats behind home plate at my closest AAA team are $30; for my closest High-A team, they are $12. Either way, very affordable. Commit to making sure that the best seats in the house offer a premium experience to keep them coming back.
-        Family friendly activities, I have seen some ballparks that offer bounce houses and inflatable castles so that parents can keep their kids entertained for the duration of a baseball game. I am not sure my team would have inflatables, but you get the point. There would need to be other activities that engage a younger audience. I think a video game lounge and baseball skills tests (running 90 feet, speed pitch, whiffle ball field) would be what you could find at my stadium.
-        Unique food, it seems like it has become an arms race amongst minor league baseball teams to come up with the craziest food option and that can catch national attention. I recently saw that the Rochester Red Wings offered a waffle cone with buffalo chicken and ranch dressing. Yum! Being able to offer unique food that can only be purchased at the ballpark helps bring people back for future visits or the occasional tourist.
-        Commitment to Craft Beer, baseball and beer go together, it is part of baseball culture for fans of age to have a beer while watching a game. It would be a priority to have multiple local craft breweries with a presence inside the stadium or with a few concessions that pour a variety of beer so that there is something for everyone.
-        Shade, for day games, it is important for most ballparks to have cover. What the Red Sox did with their Spring Training facility in Fort Myers by installing sail-like fabric awnings seems like a great way to provide shade should that be an issue.

The most important thing about pleasing the consumer is making sure that their opinions can be heard. Make sure that there are opportunities for consumers to provide feedback and constructive criticisms to improve for future seasons.

Employees
I have probably spent the greatest amount of time thinking about the employee experience of my lotto jackpot ballclub. I have heard so many horror stories across all minor league sports about the low wages and ridiculous hours. The popular belief of the culture of most MiLB teams is to burn and churn its employees and my theory is that it is because of the financial model and maximizing the bottom line.

My theory is that if you pay salaries that are competitive to similar industries such as marketing, you will attract and retain better talent. At the baseball winter meetings in 2008, I walked through a hallway with job postings from MLB and MiLB teams. For entry level positions, it was a stipend amount of anywhere from $200 - $1,000 per month during the baseball season. Sometimes housing was provided, sometimes not. Imagine how a $35,000 salary would jump out to a recent college grad versus a $500 stipend. My posting would invite all job seekers to apply and I would essentially have my choice of who I feel is the top talent. Apply this same tenant to managers, directors and the leadership team. My belief is that top talent will lead to best-in-class execution which will grow revenue and support the higher dollar salaries over time.

For tenured employees in sports, it is not uncommon for someone to sit in the same job for many years without change. The growing millennial workforce does not like this – no growth is considered a sign to move on. I have seen many companies develop organization charts that are 20+ levels to allow for frequent promotions. I don’t think that a MiLB team needs 20 levels, but there does need to be the opportunity for growth. I think it is also important to encourage employees to take on roles in different departments within the team to get a more holistic understanding of running a team.

I also see an issue in the MiLB that some teams have their employee’s work 80+ hour weeks when the team is home. That is seemingly a function of being understaffed. It would be important to me to make sure that there is a staffing plan where this was not the norm. Whether that is hiring more event staff and/or creating a rotation between full-time employees, 80+ hour weeks for 2-3 months will burn most people out quickly.

Players
While the team has no impact into who the players on the field are, they can impact their experience and put them in the best scenarios to develop. Look at the Instagram of @MinorLeagueGrinders and you can see all you need to. It’s full of stories of the real life experiences of MiLB players living in poor conditions. It’s meant to be funny (and it is), but it is also a very real problem that most minor league players are paid poverty level wages.

I see this as an opportunity to differentiate to MLB teams and retain a long-term affiliation. MiLB organizations that take good care of their players through living conditions and practice facilities will have staying power with their parent club. In terms of living quarters, I would provide housing to all players and coaches on the team in either buying a small local hotel or apartment complex and provide a cleaning staff to upkeep the rooms. Depending on the building, it could also serve as a marketing tool to help market the team in the community. As for practice facilities, there would need to be batting cages and a gym that the players and coaches have 24/7 access to so that they can practice at the stadium and near the clubhouse.

There is a reason why most teams don’t already go to these lengths and it comes down to money and that is why I wait for the jackpot to exceed $100 Million because it would take a lot of money upfront to accomplish all of this and I can’t even forecast what types of ballpark improvements would be needed. I would expect to take a loss of capital up front. My belief is that once these principles are established, the team would be an annual candidate for MiLB’s top franchise and eventually make up for the initial expense by being best in class.

It’s fun to dream!

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