December 06, 2005
Markets at work

When a local McDonald's goes out of business, or when one of the gas stations at the four-corners goes belly-up, there is little outrage and concern. However, let a professional sports franchise threaten to relocate and one would think the host city itself is threatened with extinction.

Such seems to be the hew and cry over the Marlins possible relocation. I have been advocating a Marlins relocation for a number of years, especially in lieu of folding a team such as Minnesota.

It seems the Marlins are in discussion with San Antonio, which is probably large enough to host the team - especially if they locate the stadium somewhere North of town, i.e., closer to Austin.

Major League Baseball faces no major competition, and therefore has no competing league to provide "free" market research. Instead, MLB has to expand to test markets, such as Phoenix and Colorado (both successes) and Tampa and Miami (both failures). Rather than discontinuing some other franchise when expansion has proven unprofitable, most firms (or cartels) would cut back the failed expansion. In the past, MLB has suggested doing exactly the opposite. Perhaps Commissioner Selig recognizes that Minnesota is a viable franchise and Miami is not, and yet the politics might dictate that Minnesota be put on the chopping block every year?

In the end, Miami-Dade County residents will survive just fine without baseball. Although their team won two World Series in their first ten years of existence, in comparison to the sights and sounds of Miami, WS rings are a yawner. In this sense, if the good folks of Miami don't care one way or the other if the Marlins are in town, why should the rest of us?

San Antonians might well support a major league team, although this might push the Austin minor league team out of business. While some will complain about the injustice of the Marlins relocating, and perhaps Miami business/political leaders start lobbying for a new stadium and a new team (once again), a Marlins relocation should be viewed as a positive sign that MLB is waking up to market realities.

Posted by Craig Depken at 03:23 PM in Economics  ·  TrackBack (0)

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith

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