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Baseball Cancels Minor League Season

Baseball’s minor leagues canceled their seasons Tuesday because of the coronavirus pandemic, and the head of their governing body said more than half of the 160 teams were in danger of failing without government assistance or private equity injections.

 

The National Association of Professional Baseball Leagues, the minor league governing body founded in September 1901, made the long-expected announcement. The minors had never missed a season.

 

National Association president Pat O’Conner estimated 85-90% of revenue was related to ticket money, concessions, parking, and ballpark advertising. The minors drew 41.5 million fans last year for 176 teams in 15 leagues, averaging 4,044 fans per game.

 

MLB teams are planning for a 60-game regular season and most of their revenue will derive from broadcast money.

 

O’Conner said many minor league teams had received money through the federal Paycheck Protection Program Flexibility Act.

 

He hopes for passage of H.R. 7023, which would provide $1 billion in 15-year federal loans from the Federal Reserve to businesses that had 2019 revenue of $35 million or less and “have contractual obligations for making lease, rent, or bond payments for publicly owned sports facilities, museums, and community theaters.”

 

In addition, the Professional Baseball Agreement between the majors and minors expires Sept.. 30, and MLB has proposed reducing the minimum affiliates from 160 to 120.

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