THE ECONOMICS OF SPRING BASEBALL

Written by: Redmon Wallace

THE ECONOMICS OF SPRING BASEBALL

Living in Wisconsin, many of us do not realize the presences of Spring Training Baseball every year. Most of us, if we know of it at all, just know it is something that Major League Baseball players do to get ready for the long season ahead of them. We also know that most of this happens where there is warm weather. That is about the extent of our knowledge on what many consider the preseason of the MLB. But in the states that Spring Training takes place, like Florida and Arizona, these MLB teams playing games in their states during the months of February and March are a huge part of the economy each year.

Spring Training really rakes in the cash when it comes to the Cactus League in Arizona. A recent study in Arizona showed that in the months of February and March, Spring Training brings in a total of $809 million in economic impact in the state. Included in this $809 million impact, $544 million of it is created from out of state fans. Over 60% of the money made is generated by fans from out of state, some as far as Wisconsin or even Massachusetts. This obviously drives up the prices of plane tickets, hotel rooms, even food in the state of Arizona during these times simply due to the Law of Demand. And as we know from the Supply and Demand graph, when the Demand increases, it leads to an increase in the Price Level. A survey was done in 2014 that asked all of the out-of-state visitors in Arizona attending the Spring Training games if they were there solely for the Cactus League. Over 66% of the respondents said that their sole reason for visiting the state of Arizona was to witness their favorite baseball teams play in the Cactus League. In the previous year, over 1.9 million fans attended the Cactus League games, the most since the league was established in 1947.

This same idea that the economy of Arizona revolves around Spring Training during the early months in the year is the same in the state of Florida as well. The MLB splits the league up into two leagues, 15 teams in each state. Florida receives half of the league along with Arizona, and likewise, their economy booms during the months of the Grapefruit League. A study done in 2014 shows that Spring Training brought an Economic Impact of $752 million to the state, or approximately $47 million per team. Another observation shows very key facts of the Grapefruit League that are often overlooked. An owner of a Resort and Spa in Orlando discusses that the people visiting Florida for the Grapefruit League don’t just go to one game and leave. They go to a couple games, stay a few nights in a hotel, go out to eat, golf a couple rounds, driving up the prices of every commodity. Often times too, because of the rapid increase in business that restaurants and hotels have during February and March, they have to hire more employees. This dramatically improves the unemployment rate in the state of Florida. Every business in the area of the Spring Training teams benefits from the extra “tourists” in the area each year.

I believe that because of the economic impact, the direct money brought in from Spring Training, the Cactus League and the Grapefruit League must continue to be played in Arizona and Florida each year. These leagues are now an intricate part of the state’s economy, and take that away from these states will put them in a precarious situation that they haven’t had to deal with since 1947. Taking these games away from the state, or even stopping the league as a whole, will leave a bunch of empty Spring Training stadiums and leave a huge hole in the state’s economy as we see it today. In order to ensure the economic stability of these two states, the art of preseason baseball must stay in the Sunshine State and the Grand Canyon State.

Works Cited

"Guide to the Grapefruit League: I-95 Corridor." Hagerstown Suns Fan Club. N.p., n.d. Web. 30 Mar. 2017.

Sports, Connect. "Spring Training Is Big Business for Florida." Connect Sports. N.p., 09 Feb. 2015. Web. 30 Mar. 2017.

"Spring Training - Cactus League." Major League Baseball. N.p., n.d. Web. 30 Mar. 2017.

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