Tuesday, March 30, 2010

Oakland A's Stadium News: Field of Schemes wrong, as usual

The news that Major League Baseball's "blue-ribbon" committee or "Gang of three" is set to recommend the Oakland Athletics Baseball Organization move to San Jose from Oakland apparently upset some unknown blogger at the website Field of Schemes, which wrongly assumes that every sports stadium deal is a bad one. This blogger figured why not have some fun and give Field of Schemes some Internet traffic light at the same time.

Field of Schemes writes:


That Selig's Gang of Three would recommend San Jose as an A's destination, if true, wouldn't be surprising, given its further-ahead stadium deal and relatively untapped market


Writing that the San Jose Market Area is "relatively untapped" proves Field of Schemes doesn't know the San Francisco Bay Area, the San Francisco Giants Market Area, or is just plain confused. I'd select the last one, because then the Field of Schemes blogger writes...


..the bigger question remains what price Selig will make A's owner Lew Wolff have to pay to the San Francisco Giants if he wants to get a deal done.


At least the blogger over there realized perhaps half way through his blog as he was writing it, it seems, that San Jose is part of the Giants fan base and an area where Giants season ticket holders live.

And that contradicts the assertion that the San Jose Market is "untapped." It's more complicated than that. According to one study written over 15 years ago and I read while I worked as Economic Advisor to the Mayor of Oakland in 1997, 47 percent of the San Francisco Giants' fan base comes from San Jose and Santa Clara county. Moving the Oakland Athletics closer to San Jose doesn't mean people will dump their Giants season tickets; it means Oakland season ticket holders would have a new place to go.

The change would be in discretionary spending for residents in the San Jose area, because now going to a baseball game would be a bit easier to do. But after what I calculated as a three-year novelty period as I was creating my Oakland Baseball Simworld (which is used in sports management school programs), spending would drop to normal levels and if the economic unemployment rate did not decrease to around 6 percent, the new stadium would be in big trouble.

Where the San Francisco Giants would be harmed by the Oakland A's is in sponsorship revenue it could capture from that region.

But the main issue is the San Francisco Bay Area is really one big metropolitan area. In the previous blog on this, I was explaining how baseball really is a World export industry, but in the case of the Oakland A's, their marketing effort does not reflect that. I'm not surprised the Field of Schemes blogger spent so much time being snarky that he forgot to think about what he was writing, let alone understand my point.

Stay tuned....This is fun.

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