| From | Front Office Sports <[email protected]> |
| Subject | MLB Payrolls Hit Record $5.2B |
| Date | January 23, 2023 12:24 PM |
Links have been removed from this email. Learn more in the FAQ.
Links have been removed from this email. Learn more in the FAQ.
January 23, 2023
Read in Browser [[link removed]]
POWERED BY
Not everyone has the stomach to watch slap fighting, but Dana White’s new league debuted [[link removed]] with a decent TV audience. “Power Slap: Road to the Title” on TBS — which showed multiple participants suffering apparent concussions as they traded slaps — drew 295,000 viewers. The series debut was pushed back a week after a video revealed White having a physical altercation with his wife on New Year’s Eve.
Leagues MLB Luxury Tax Payrolls Hit $5.2B In Record Revenue Year [[link removed]]
Charles LeClaire-USA TODAY Sports
Total Major League Baseball player compensation reached new heights in 2022.
Payments to players topped $5 billion for the first time, reaching [[link removed]] $5.2 billion – up from $4.5 billion the year before.
That sum includes player salaries on each team’s 40-man roster, calculated as the average annual value across each players’ contract. It also includes $16 million per club in additional benefits, including healthcare, pensions insurance, spring training allowances, meal and tip money, and taxes.
Six teams made luxury tax payments for exceeding the $230 million payroll threshold, led by the Los Angeles Dodgers with a $32.4 million bill.
The New York Mets paid $30.8 million. They had the league’s highest payroll at $299.8 million, but were assessed at a lower rate because they had not crossed the payroll threshold the year prior.
The New York Yankees, San Diego Padres, Philadelphia Phillies, and Boston Red Sox also made payments which will go into MLB’s competitive balance pool.
Record Revenue
The record payroll total corresponded with a record revenue year for MLB, which brought in $10.8 billion in 2022. New media deals with Fox, TBS, and ESPN brought in $1.8 billion, and sponsorship deals added another $1.2 billion.
The league will add a new source of funds this season with teams now allowed to sell sponsored uniform patches.
College Athletics Big 12 Schools Could Benefit From Texas, Oklahoma Leaving Early [[link removed]]
Austin American-Statesman-USA TODAY NETWORK
While Texas and Oklahoma are under contract to remain in the Big 12 until 2025, there’s a good chance the two schools could leave a year early.
Commissioner Brett Yormark says [[link removed]] he’s “open to it” — if it works for all parties involved.
An early departure would also mean paying an early exit fee, and that money could be used to reimburse the Big 12’s eight legacy schools. Those payments could reach as high as $168 million in total, per [[link removed]] CBS Sports, but will likely be significantly less.
A year ago, the legacy schools voted unanimously to forgo a portion of their media rights distributions to help fund the conference’s four newcomers — Brigham Young, Central Florida, Cincinnati, and Houston.
Baylor, Iowa State, University of Kansas, Kansas State, Oklahoma State, Texas Christian, Texas Tech, and West Virginia each allowed the conference to retain $16 million, split between 2023-24 and 2024-25. That sum will be drawn from the schools’ annual distributions of $42.6 million. That cash will be used to help the four new members, which will receive $18 million to $19 million once they join. Cash Incoming
Even if the eight legacy schools have to handle a couple of relatively lean years, they can expect a steady flow of media money starting in 2025.
The conference agreed to new six-year deals with ESPN and Fox last year totaling $2.3 billion, or $380 million annually. Those deals will bring the conference’s 12 schools $31.7 million each in annual media revenue.
SPONSORED BY WENDY'S
Start Your Day With a Better Breakfast
Wendy’s Homestyle French Toast Sticks [[link removed]] are so good, some are saying they’re better than their Mom’s French Toast.
They are perfectly crispy on the outside. Perfectly fluffy on the inside. And perfectly perfect in every way. Wendy’s Homestyle French Toast Sticks might be the best thing to ever happen to breakfast.
You’re going to want to set your alarm a little earlier. Tell your boss you’re going to be a little late. Move a little closer to your nearest Wendy’s. Whatever it takes to start your day the right way with these sweet and crispy delights.
The bar for breakfast hasn’t just been raised, it’s been completely replaced. Choose wisely. Choose Wendy’s Homestyle French Toast Sticks [[link removed]] today.
Available during breakfast hours only, until 10:30 a.m.
Leagues WNBA Set to Test Its Popularity, Weigh Expansion in Canada [[link removed]]
Kamil Krzaczynski-USA TODAY Sports
Canada has the chance to prove why it should get a WNBA team.
Toronto is hosting [[link removed]] a preseason game between the Minnesota Lynx and Chicago Sky in May at Scotiabank Arena that will air on Sportsnet and TSN.
“This is the way to assess the popularity of the sport in Canada,” said WNBA commissioner Cathy Engelbert. “We’re certainly excited to see how the market responds, and certainly the fans in the country from a viewership perspective as well.”
It will be the first WNBA game played in the country. A scheduled preseason game in Toronto was canceled in 2020 due to the pandemic. The league played in Mexico in 2004 and Great Britain in 2011. Toronto’s Time?
The timeline to expand and number of expansion teams for the 12-team league is unclear.
“A league of our size and scope … we’re going to expand at the right time,” Engelbert said. “Toronto’s certainly one of the names on the narrowed list.”
The WNBPA has suggested Nashville and the Bay Area (both Oakland and San Francisco are considered contenders) as expansion sites.
Engelbert previously said [[link removed]] new teams would need around 18-24 months to prepare, including hiring coaches and executives and bringing on players through an expansion draft.
Gaming Nintendo Ramps Up Production of Switch Console [[link removed]]
Nintendo
Nintendo is picking up the pace due to high demand for its hybrid console.
The gaming giant is reportedly [[link removed]] planning to increase production of the Switch after the Japan-based company shipped roughly 21 million units in the fiscal year ending March 2023.
In November 2022, Nintendo slashed its full-year sales forecast for the Switch — its best-selling home gaming console ever — to 19 million units following lackluster profits. The company reported [[link removed]] $4.5 billion in sales for the six months ending Sept. 30, 2022 — up 5% year-over-year.
Switch sales reached 6.68 million units during that same period — down 19% year-over-year — as Nintendo was hampered by the ongoing chip shortage plaguing the tech industry.
Nintendo raised its Switch sales projection, believing it can now reach demand. As of Sept. 30, the company has sold [[link removed]] 114.3 million Switch units since its 2017 release. The best-selling console of all time is Sony’s PlayStation 2 at over 155 million units.
Nintendo is also looking to bolster its reach in the mobile gaming market, which is projected [[link removed]] to exceed a valuation of $215 billion by 2028.
In November 2022, the company announced [[link removed]] a joint venture with mobile gaming company and “Animal Crossing” co-developer DeNA. The two entities will establish Nintendo Systems Co., Ltd., which will work to “strengthen the digitalization of Nintendo’s business.”
New Stakeholder
Last year, the Public Investment Fund — Saudi Arabia’s sovereign wealth fund — acquired [[link removed]] a 5% stake in Nintendo for $3 billion, making it the company’s fifth-largest shareholder.
SPONSORED BY WENDY'S
The Perfect Note of Nostalgia
Everyone has a sports memory that takes them back to their childhood. Front Office Sports and Wendy’s [[link removed]] teamed to share some of their unforgettable sports memories.
Editor Greg Lee remembers the Minnesota Miracle — although it wasn’t the outcome he’d hoped for.
“My wife and I went to a Saints sports bar in Atlanta to catch the game. The New Orleans music was blaring. We were dancing like the Saints were on the Vikings — second-lining our way to another Super Bowl run.
It would take a miracle for the Vikings to win the game. Then it happened. The Saints safety fell to the ground, Stefon Diggs caught the ball and strolled into the end zone. We strolled out in disbelief.”
Like unforgettable sports moments etched in our memories, Wendy’s Homestyle French Toast Sticks [[link removed]] make you feel like a kid again. Start your day with nostalgia and syrupy goodness!
Conversation Starters ESPN’s Stephen A. Smith has been busy promoting his autobiography “Straight Shooter.” But staying busy is nothing new for one of the network’s front-facing personalities. It has been a long journey for the “First Take” star. He went from being dumped by the company in 2009 to becoming one of the most influential employees. FOS dives into the rise [[link removed]], fall, and rise of Stephen A. At the start of the new year, UFC president Dana White was caught on video having a domestic incident with his wife. The spouses were seen slapping each other. For most sports execs, there’d be some reckoning — especially when it comes to a physical altercation with a partner. But the controversial UFC leader has faced zero professional consequences for his actions over the years. How has he become one of the industry’s most powerful and untouchable [[link removed]] figures? Chad “Ochocinco” Johnson’s first purchase with his first NFL paycheck was McDonald’s. Now he owns [[link removed]] three of them. Today's Action
NHL
08:30 PM
Sabres (+150) at Stars (-175)
Bet Now [[link removed]]
NBA
10:30 PM
Grizzlies (-115) at Kings (-105)
Bet Now [[link removed]]
NHL
09:30 PM
Blue Jackets (+300) at Flames (-365)
Bet Now [[link removed]]
*All times are EST unless otherwise noted.
*Odds/lines subject to change. T&Cs apply. See [[link removed]] for details.
Question Of The Day
Do you plan on watching any of this year’s March Madness college basketball tournament?
Yes [[link removed]] No [[link removed]]
Friday’s Answer
68% of respondents purchase running shoes 1-3 times a year; 9% purchase running shoes 4+ times a year.
Advertise [[link removed]] Awards [[link removed]] Learning [[link removed]] Video [[link removed]] Podcasts [[link removed]] Pro [[link removed]] Written by Owen Poindexter [[link removed]], Abigail Gentrup [[link removed]], Justin Byers [[link removed]] Edited by Matthew Tabeek [[link removed]], Brian Krikorian [[link removed]]
If this email was forwarded to you, you can subscribe here [[link removed]].
Update your preferences [link removed] / Unsubscribe [link removed]
Copyright © 2023 Front Office Sports. All rights reserved.
80 Pine Street Suite 3202 New York, NY 10005
Read in Browser [[link removed]]
POWERED BY
Not everyone has the stomach to watch slap fighting, but Dana White’s new league debuted [[link removed]] with a decent TV audience. “Power Slap: Road to the Title” on TBS — which showed multiple participants suffering apparent concussions as they traded slaps — drew 295,000 viewers. The series debut was pushed back a week after a video revealed White having a physical altercation with his wife on New Year’s Eve.
Leagues MLB Luxury Tax Payrolls Hit $5.2B In Record Revenue Year [[link removed]]
Charles LeClaire-USA TODAY Sports
Total Major League Baseball player compensation reached new heights in 2022.
Payments to players topped $5 billion for the first time, reaching [[link removed]] $5.2 billion – up from $4.5 billion the year before.
That sum includes player salaries on each team’s 40-man roster, calculated as the average annual value across each players’ contract. It also includes $16 million per club in additional benefits, including healthcare, pensions insurance, spring training allowances, meal and tip money, and taxes.
Six teams made luxury tax payments for exceeding the $230 million payroll threshold, led by the Los Angeles Dodgers with a $32.4 million bill.
The New York Mets paid $30.8 million. They had the league’s highest payroll at $299.8 million, but were assessed at a lower rate because they had not crossed the payroll threshold the year prior.
The New York Yankees, San Diego Padres, Philadelphia Phillies, and Boston Red Sox also made payments which will go into MLB’s competitive balance pool.
Record Revenue
The record payroll total corresponded with a record revenue year for MLB, which brought in $10.8 billion in 2022. New media deals with Fox, TBS, and ESPN brought in $1.8 billion, and sponsorship deals added another $1.2 billion.
The league will add a new source of funds this season with teams now allowed to sell sponsored uniform patches.
College Athletics Big 12 Schools Could Benefit From Texas, Oklahoma Leaving Early [[link removed]]
Austin American-Statesman-USA TODAY NETWORK
While Texas and Oklahoma are under contract to remain in the Big 12 until 2025, there’s a good chance the two schools could leave a year early.
Commissioner Brett Yormark says [[link removed]] he’s “open to it” — if it works for all parties involved.
An early departure would also mean paying an early exit fee, and that money could be used to reimburse the Big 12’s eight legacy schools. Those payments could reach as high as $168 million in total, per [[link removed]] CBS Sports, but will likely be significantly less.
A year ago, the legacy schools voted unanimously to forgo a portion of their media rights distributions to help fund the conference’s four newcomers — Brigham Young, Central Florida, Cincinnati, and Houston.
Baylor, Iowa State, University of Kansas, Kansas State, Oklahoma State, Texas Christian, Texas Tech, and West Virginia each allowed the conference to retain $16 million, split between 2023-24 and 2024-25. That sum will be drawn from the schools’ annual distributions of $42.6 million. That cash will be used to help the four new members, which will receive $18 million to $19 million once they join. Cash Incoming
Even if the eight legacy schools have to handle a couple of relatively lean years, they can expect a steady flow of media money starting in 2025.
The conference agreed to new six-year deals with ESPN and Fox last year totaling $2.3 billion, or $380 million annually. Those deals will bring the conference’s 12 schools $31.7 million each in annual media revenue.
SPONSORED BY WENDY'S
Start Your Day With a Better Breakfast
Wendy’s Homestyle French Toast Sticks [[link removed]] are so good, some are saying they’re better than their Mom’s French Toast.
They are perfectly crispy on the outside. Perfectly fluffy on the inside. And perfectly perfect in every way. Wendy’s Homestyle French Toast Sticks might be the best thing to ever happen to breakfast.
You’re going to want to set your alarm a little earlier. Tell your boss you’re going to be a little late. Move a little closer to your nearest Wendy’s. Whatever it takes to start your day the right way with these sweet and crispy delights.
The bar for breakfast hasn’t just been raised, it’s been completely replaced. Choose wisely. Choose Wendy’s Homestyle French Toast Sticks [[link removed]] today.
Available during breakfast hours only, until 10:30 a.m.
Leagues WNBA Set to Test Its Popularity, Weigh Expansion in Canada [[link removed]]
Kamil Krzaczynski-USA TODAY Sports
Canada has the chance to prove why it should get a WNBA team.
Toronto is hosting [[link removed]] a preseason game between the Minnesota Lynx and Chicago Sky in May at Scotiabank Arena that will air on Sportsnet and TSN.
“This is the way to assess the popularity of the sport in Canada,” said WNBA commissioner Cathy Engelbert. “We’re certainly excited to see how the market responds, and certainly the fans in the country from a viewership perspective as well.”
It will be the first WNBA game played in the country. A scheduled preseason game in Toronto was canceled in 2020 due to the pandemic. The league played in Mexico in 2004 and Great Britain in 2011. Toronto’s Time?
The timeline to expand and number of expansion teams for the 12-team league is unclear.
“A league of our size and scope … we’re going to expand at the right time,” Engelbert said. “Toronto’s certainly one of the names on the narrowed list.”
The WNBPA has suggested Nashville and the Bay Area (both Oakland and San Francisco are considered contenders) as expansion sites.
Engelbert previously said [[link removed]] new teams would need around 18-24 months to prepare, including hiring coaches and executives and bringing on players through an expansion draft.
Gaming Nintendo Ramps Up Production of Switch Console [[link removed]]
Nintendo
Nintendo is picking up the pace due to high demand for its hybrid console.
The gaming giant is reportedly [[link removed]] planning to increase production of the Switch after the Japan-based company shipped roughly 21 million units in the fiscal year ending March 2023.
In November 2022, Nintendo slashed its full-year sales forecast for the Switch — its best-selling home gaming console ever — to 19 million units following lackluster profits. The company reported [[link removed]] $4.5 billion in sales for the six months ending Sept. 30, 2022 — up 5% year-over-year.
Switch sales reached 6.68 million units during that same period — down 19% year-over-year — as Nintendo was hampered by the ongoing chip shortage plaguing the tech industry.
Nintendo raised its Switch sales projection, believing it can now reach demand. As of Sept. 30, the company has sold [[link removed]] 114.3 million Switch units since its 2017 release. The best-selling console of all time is Sony’s PlayStation 2 at over 155 million units.
Nintendo is also looking to bolster its reach in the mobile gaming market, which is projected [[link removed]] to exceed a valuation of $215 billion by 2028.
In November 2022, the company announced [[link removed]] a joint venture with mobile gaming company and “Animal Crossing” co-developer DeNA. The two entities will establish Nintendo Systems Co., Ltd., which will work to “strengthen the digitalization of Nintendo’s business.”
New Stakeholder
Last year, the Public Investment Fund — Saudi Arabia’s sovereign wealth fund — acquired [[link removed]] a 5% stake in Nintendo for $3 billion, making it the company’s fifth-largest shareholder.
SPONSORED BY WENDY'S
The Perfect Note of Nostalgia
Everyone has a sports memory that takes them back to their childhood. Front Office Sports and Wendy’s [[link removed]] teamed to share some of their unforgettable sports memories.
Editor Greg Lee remembers the Minnesota Miracle — although it wasn’t the outcome he’d hoped for.
“My wife and I went to a Saints sports bar in Atlanta to catch the game. The New Orleans music was blaring. We were dancing like the Saints were on the Vikings — second-lining our way to another Super Bowl run.
It would take a miracle for the Vikings to win the game. Then it happened. The Saints safety fell to the ground, Stefon Diggs caught the ball and strolled into the end zone. We strolled out in disbelief.”
Like unforgettable sports moments etched in our memories, Wendy’s Homestyle French Toast Sticks [[link removed]] make you feel like a kid again. Start your day with nostalgia and syrupy goodness!
Conversation Starters ESPN’s Stephen A. Smith has been busy promoting his autobiography “Straight Shooter.” But staying busy is nothing new for one of the network’s front-facing personalities. It has been a long journey for the “First Take” star. He went from being dumped by the company in 2009 to becoming one of the most influential employees. FOS dives into the rise [[link removed]], fall, and rise of Stephen A. At the start of the new year, UFC president Dana White was caught on video having a domestic incident with his wife. The spouses were seen slapping each other. For most sports execs, there’d be some reckoning — especially when it comes to a physical altercation with a partner. But the controversial UFC leader has faced zero professional consequences for his actions over the years. How has he become one of the industry’s most powerful and untouchable [[link removed]] figures? Chad “Ochocinco” Johnson’s first purchase with his first NFL paycheck was McDonald’s. Now he owns [[link removed]] three of them. Today's Action
NHL
08:30 PM
Sabres (+150) at Stars (-175)
Bet Now [[link removed]]
NBA
10:30 PM
Grizzlies (-115) at Kings (-105)
Bet Now [[link removed]]
NHL
09:30 PM
Blue Jackets (+300) at Flames (-365)
Bet Now [[link removed]]
*All times are EST unless otherwise noted.
*Odds/lines subject to change. T&Cs apply. See [[link removed]] for details.
Question Of The Day
Do you plan on watching any of this year’s March Madness college basketball tournament?
Yes [[link removed]] No [[link removed]]
Friday’s Answer
68% of respondents purchase running shoes 1-3 times a year; 9% purchase running shoes 4+ times a year.
Advertise [[link removed]] Awards [[link removed]] Learning [[link removed]] Video [[link removed]] Podcasts [[link removed]] Pro [[link removed]] Written by Owen Poindexter [[link removed]], Abigail Gentrup [[link removed]], Justin Byers [[link removed]] Edited by Matthew Tabeek [[link removed]], Brian Krikorian [[link removed]]
If this email was forwarded to you, you can subscribe here [[link removed]].
Update your preferences [link removed] / Unsubscribe [link removed]
Copyright © 2023 Front Office Sports. All rights reserved.
80 Pine Street Suite 3202 New York, NY 10005
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