Should MLB invest in foreign leagues?

[NewEnglandAmazins]

This is not about expanding into Foreign markets, but MLB's purchase of teams or whole leagues outside of the United States for profit. McDonald's, Nike and Coca Cola are American brands known worldwide; so why can't MLB do the same for baseball? Is the business of baseball not lucrative enough outside of our borders? MLB is the primary investor in Australia's recently christened ABL. Will there be more ABL type projects in the future or was Australia a unique opportunity?....Any thoughts?

[jalbright]

The question is, where can it be done profitably--or at least bring MLB enough talent to justify the expenditure? I think that it would be wise to spend sums that can be recouped through the combination of talent acquisition and local income (ticket sales and concessions). There's no need to do this in Japan, Taiwan, Korea or much of Latin America--though they might be wise to make sure those leagues can continue, especially some Latin ones. OTOH, there's no point pouring money into a bottomless pit. I suspect the best model is spending small amounts of money in a very strategic way. One problem is that, unlike the selling of consumable products, sports usually require a synergy between players at several levels and fans to have positive finances. It wouldn't hurt baseball to try and figure out answers as to how to accomplish this, but to start with relatively modest sized pilot projects.

[USA101]

What about S. Africa?

[NewEnglandAmazins]

Very good points, do you think that MLB has any serious opportunities outside of East Asia, Latin America or Australia? USA101 mentioned South Africa, but I don’t believe they have a professional league over there to make a profit and their talent level isn’t anywhere near to compete above double A. The same can be said of many other places where MLB holds their elite camps; the talent is just not ready. I ask these questions, because there are so many troubled leagues around the world that could use MLB’s resources and expertise to be more successful. I am not suggesting free hand outs or like you said “pouring money into a bottomless pit”, but studying potentially profitable investment opportunities where demand is established (for example: Taiwan, Mexico & Puerto Rico). However, I do agree with you that pilot projects should be modestly sized.

[Tadasimha]

The question is, where can it be done profitably--or at least bring MLB enough talent to justify the expenditure? I think that it would be wise to spend sums that can be recouped through the combination of talent acquisition and local income (ticket sales and concessions). There's no need to do this in Japan, Taiwan, Korea or much of Latin America--though they might be wise to make sure those leagues can continue, especially some Latin ones. OTOH, there's no point pouring money into a bottomless pit. I suspect the best model is spending small amounts of money in a very strategic way. One problem is that, unlike the selling of consumable products, sports usually require a synergy between players at several levels and fans to have positive finances. It wouldn't hurt baseball to try and figure out answers as to how to accomplish this, but to start with relatively modest sized pilot projects.

I think that after a couple of seasons in Australia, if the ABL turns out to be a success, then MLB might turn to another market area - which might well be in Europe - but only if they see a positive development down under first.

[jalbright]

I don't know how often or where they send coaches and/or players to do clinics and the like. That's something they should do a lot of--and while they're doing those, they can collect information to figure out what to do next and where. I don't know how well developed the baseball world is outside on the New World and Eastern Asia, so I really can't intelligently comment on where they should go next or what exactly they should do. All I put forth were some sensible business guidelines--and implicitly asked for recognition MLB is a business, not a charity. Sure, baseball could use help in a lot of places--but where can MLB use its resources so it can at least break even over the next 5-10 years if an increase in the talent pool is figured into the equation? Baseball benefits if the talent pool is larger, so that should be a consideration. I'm all for MLB investing in those ways and places where it seems reasonable to think they can meet those goals. OTOH, putting money beyond traveling coaches/players/seminars in ways and places where it doesn't seem likely to meet those modest goals probably doesn't help the sport.

[brewcrew82]

I think that after a couple of seasons in Australia, if the ABL turns out to be a success, then MLB might turn to another market area - which might well be in Europe - but only if they see a positive development down under first.

In Australia, I believe MLB has a four year minimum investment in the ABL. If they're not reaping the rewards (either financial or talent) after that time they will pull out and the league will probably fold.

[NattyBaller]

Maybe MLB could involve itself in helping the CPBL detach itself from gambling interests. This would also go hand-in-hand with its desire to grow the game in China, since the game's popularity among Han Chinese in Taiwan maybe could be leveraged to promote the game in Fujian province. It wouldn't hurt to have a strong league in Taiwan that had saturated the market there and was looking to grow.

[NattyBaller]

With regards to investing in areas that may not result in real talent in a 10-year time frame, I think, as long as the League's finances are as strong as they are purported to be, MLB can afford to set aside a small amount for the general global promotion of the game in places like Sub-Saharan Africa. It doesn't make sense to mortgage the farm on promoting growth in a lot of the world, but it's possible that investing a pittance in countries like Uganda or the Philippines might go a long ways. How much money and how it would be allocated I obviously can't say for sure, but I feel like for fifteen bucks and a spare tire they could have saved the tournament that was canceled in the Philippines recently. Another way of helping is to set up fields and provide equipment, and providing equipment costs MLB next to nothing, they throw balls into the stands every game.

[USA101]

Uganda is going to be catching up to S. Africa very soon. Last year there little league team beat the S. Africans by mercy rule, granted these are 12 year olds who havent been developed entirely, but we all know they are Athletes and thats all they have to do but work. S. Africa is a very developed country compared to Uganda and the rest of Africa. I am not saying MLB should start pouring money into Uganda but they have potential and MLB needs to notice it.

[Richard]

They could provide support in terms of promotion and marketing. If the Australian league becomes somewhat successful, then maybe MLB will invest in other countries. I think a European league may begin in 2013 or 2014 which is old news.