The name of the game in Major League Baseball is diversification, and the Chicago Cubs blueprint for doing exactly that is coming together.
The Chicago Cubs Blueprint for Billions
Improvements to the on-field product have been ongoing and seem to be panning out. While becoming a perennial National League Central division contender would help improve revenue, the plan is much bigger than that.
The renovations to Wrigley Field are on-going, aimed at improving the fan experience in and around one of baseball’s most iconic venues. That’s still just one part of the master plan, however.
Along with renovations to Wrigley Field itself, the Cubs are looking to expand their interests in the surrounding community. Wrigleyville has for years been a tourist destination regardless of whether baseball is in-season or not. The Cubs are looking to get their cut of that revenue with the construction of Wrigley Plaza.
That’s not the biggest change coming for the Cubs, however. The team’s broadcast contract with Comcast Sportsnet runs out in 2019, and the Cubs already have a plan for their next step.
The Cubs plan to launch their own television network by 2020. They do have an opt-out clause in their contract with Comcast Sportsnet. If the franchise is ready to launch its own network earlier, that could be a possibility.
The Wrigley Plaza and an in-house television network are all about bringing in revenue that wouldn’t be subject to MLB’s revenue-sharing formula. It’s ancillary businesses, not baseball operations, that will set the Cubs apart in terms of cash flow.
Coming full circle
That cash flow will be a boost to the baseball operations, however. About the same time that the Cubs would start reaping the benefits, their young core of players will begin to hit free agency. The extra cash will go a long way toward keeping that talent in Wrigley.
With up to $3 billion in new revenue, the Cubs will compete financially with the best in baseball. If that translates to on-field success, a juggernaut could emerge.
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