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NPB Broke

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NPB Broke
From Japan Today:
The 12 Central and Pacific League teams are asking the players' union for a third All-Star game next year to wipe out the debts of the game's governing body, Nippon Professional Baseball, Kyodo News learned Tuesday. According to several sources speaking on condition of anonymity, NPB, which has been in the red for four straight years, had originally planned two games on July 22 and 23 at Nagoya Dome and Chiba Marine Stadium, respectively.

NPB, though, now wants to hold the second game at Tokyo Dome and the third in Chiba on the 24th. NPB has been in debt since 2006, and was 60 million yen under for the 2009 fiscal year. Revenues were down again, primarily because three Japan Series games were not televised live on terrestrial channels. NPB has also raised its membership fee for the 12 teams by 30 million yen to 100 million yen a year.
So how did this happen and where did all the money go?
Comments
Re: NPB Broke
[ Author: westbaystars | Posted: Nov 17, 2010 11:03 AM | YBS Fan ]

A great deal of the money is apparently going to rent their offices in the Ginza District. In fact, the main criticism I've heard of Katoh-Commissioner has been his unwillingness to move to where they can have cheaper rent.

Then there's the issue of NPB-BIS, the baseball information system that Dentsu is contracted to maintain. My understanding is that the system is a money pit for the NPB clubs, many of whom don't even use it because it's such an antique. There was once a study made to re-evaluate the current system and look into building a more modern and flexible system. The overall cost/benefit analysis showed that a new system would be better in the not too distant future, but one of the members of the committee hijacked the conclusion, stating that it would be best to change nothing. So good money continues to be thrown after bad with no benefits to the fans or the teams.

If my understanding is correct, then it would seem that the NPB governing body is responsible for many of the costs of running the league (umpires, pension plans, official scorers, administrative and office duties, etc.), but does not have many avenues of revenue (other than the club fees, All Star games, Nippon Series, and NPB logo licensing).

The club owners each control their own merchandising and TV rights with an iron fist, and will not give that up easily. (The Pacific League owners did managed a type of sharing via Pacific League Marketing, but I haven't heard anything recently as to how that's working out for them.)

I'd heard that revenue sharing in MLB was strongly fought against for the longest time, but once everybody came under a single, coherent marking umbrella, all kinds of new markets started opening up. Some teams still grumble, but MLB overall has been strengthened.

I just doubt that NPB has the leadership to do something similar.
Re: NPB Broke
[ Author: Guest: guest | Posted: Dec 20, 2010 11:42 AM ]

Interesting article in the Japan Times about this topic.
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