JERRY BELL – MINNESOTA TWINS

 

 

DECEMBER 6, 2001

 

 

 

                                                            TESTIMONY OF T. GERON BELL

                                                            PRESIDENT, MINNESOTA TWINS

                                                            BEFORE THE COMMITTEE ON THE JUDICIARY

                                                            UNITED STATES HOUSE OF REPRESENTATIVES

 

 

 

 

            MR. CHAIRMAN, MY NAME IS JERRY BELL AND I HAVE SERVED AS

 

PRESIDENT OF THE MINNESOTA TWINS BASEBALL CLUB SINCE 1987.  I APPRECIATE  THE OPPORTUNITY TO TESTIFY BEFORE THE COMMITTEE TODAY ABOUT ISSUES OF GRAVE CONCERN TO YOU, TO THE FANS OF MINNESOTA, AND TO ALL BASEBALL FANS WHO GREW UP BELIEVING THE HOME TEAM ALWAYS HAS A CHANCE TO WIN THE WORLD SERIES.  I’M HERE TODAY TO TELL YOU THAT ALL TEAMS DO NOT HAVE THAT CHANCE, AND THE REASON THEY DON’T HAVE THAT CHANCE IS THAT THE CLUBS OF MAJOR LEAGUE BASEBALL ARE CURRENTLY PARTICIPATING IN AN ECONOMIC SYSTEM THAT DOES NOT WORK.

 

THE SPECIFIC CRISIS AT HAND TODAY MAY BE CONTRACTION.  BUT THE LARGER ISSUE IS WHAT BROUGHT US TO THIS POSSIBILITY.  ANYONE WHO HAS CLOSELY FOLLOWED THE ECONOMICS OF THE GAME OVER THE PAST 10 YEARS CANNOT BE TOO SURPRISED.  WITHOUT THE REFORMS WE HAVE NEEDED FOR YEARS THERE ARE NOT MANY ALTERNATIVES.

 

IF YOU WOULD LIKE TO SEE A ROAD MAP DESCRIBING HOW THE ECONOMICS OF THE GAME ARE SPOILING THE COMPETITION, JUST CHECK THE RECORD OF THE MINNESOTA TWINS.  WE WON WORLD CHAMPIONSHIPS IN 1987 AND 1991; THE LAST SO-CALLED SMALL MARKET CLUB TO DO SO.  DURING THOSE YEARS WE WERE AT THE INDUSTRY AVERAGE IN REVENUES AND PAYROLL.

 

SINCE THAT TIME WE HAVE DROPPED FAR BEHIND THE INDUSTRY AVERAGE.  WITH LOCAL CLUB REVENUES NOW AVERAGING ABOUT $95 MILLION ANNUALLY – UP FROM $50 MILLION IN 1996, MINNESOTA TRAILS THE AVERAGE SOME $63 MILLION.  WITHOUT THOSE LOCAL REVENUES WE ABSOLUTELY CANNOT REASONABLY COMPETE ON A CONSISTENT BASIS WITH INDUSTRY PAYROLL AVERAGES OF $70 MILLION ANNUALLY.

 

AS EVIDENCE OF THAT, THE TWINS HAVE HAD TWO COMPETITIVE YEARS IN THE LAST TEN.  EVEN LAST SEASON, WITH THE TWINS ENJOYING OUR FIRST WINNING SEASON IN NINE YEARS AND AN INCREASE IN ATTENDANCE OF 700,000; THE CLUB STILL RANKED 29TH OUT OF 30 TEAMS IN LOCAL REVENUES.

 

OVER THE PAST FIVE YEARS THE TWINS HAVE RANKED NEXT TO LAST IN LOCAL REVENUES.  DURING THE SAME PERIOD OF TIME SOME 58 PERCENT OF THE OVERALL TWINS REVENUE HAS COME FROM MAJOR LEAGUE BASEBALL, EITHER FROM THE GENERAL FUND OR REVENUE SHARING.

 

THE ONLY WAY TO GENERATE SUFFICIENT LOCAL REVENUE TO COMPETE IS WITH A SUITABLE BALLPARK.  WE DO NOT HAVE A SUITABLE BALLPARK IN MINNESOTA.   INCLUDING DIFFERENT ITERATIONS OF VARIOUS PLANS, THERE HAVE BEEN TWO DOZEN DIFFERENT NEW BALLPARK PLANS INTRODUCED IN MINNESOTA OVER THE PAST FIVE YEARS AIMED AT RESOLVING THE TWINS’ LOCAL REVENUE DISPARITY, BUT IN 17 DIFFERENT COMMITTEE OR FLOOR VOTES IN THE STATE LEGISLATURE THE MEASURES HAVE BEEN DENIED. 

 

THAT LEAVES THE TWINS WITH THE REALITY OF A BAD BASEBALL FACILITY, A BAD LEASE, THE SECOND WORST RECORD FOR LOCAL REVENUE GENERATION, THE SECOND WORST SUBSIDY SITUATION WITHIN MLB, AND A TEAM THAT HAS BEEN COMPETITIVE ONLY 20 PERCENT OF THE TIME IN TEN YEARS.  ON TOP OF THAT WE ALSO HAVE NO CURRENT, REAL PROSPECTS FOR MEETING OUR LOCAL REVENUE RESPONSIBILITIES.  I DON’T LIKE OUR POSITION BUT I HAVE A DIFFICULT TIME DENYING IT. 

 

THE MINNESOTA TWINS, AND I, MR. CHAIRMAN, HAVE BEEN SUPPORTIVE OF COMMISSIONER SELIG’S ATTEMPTS TO REFORM AND RESTRUCTURE MAJOR LEAGUE BASEBALL’S ECONOMIC SYSTEM.  WE HAVE SUPPORTED  MORE REVENUE SHARING.  WE HAVE SUPPORTED EFFORTS TO PLACE MORE RESTRAINT ON PAYROLL.  WE HAVE ARGUED FOR, AND TRIED TO PRACTICE, ECONOMIC SANITY.

 

WE DO NOT CURRENTLY PARTICIPATE IN AN ECONOMIC SYSTEM WHERE FISCAL RESPONSIBILITY IS REWARDED.  IF WE ATTEMPT TO KEEP OUR EXPENSES WITHIN OUR REVENUES, THEN WE ARE CRITICIZED FOR BEING CHEAP, ATTENDANCE DECLINES, TELEVISION REVENUES GO DOWN WITH THE RATINGS, AND THE OWNER IS CASTIGATED FOR NOT CONTRIBUTING TO THE ILLS OF THE GAME.

 

IF WE SPEND BEYOND OUR MEANS IN AN ATTEMPT TO REVERSE THE CYCLE, WE ONLY DRIVE THE FRANCHISE AND ALL OF BASEBALL DEEPER INTO DEBT AND MERELY COVER UP THE NATURE OF THE DEEPER SEEDED ECONOMIC WOES.

 

MOST OF THE PROPOSED INDUSTRY REFORMS CANNOT BE MADE UNILATERALLY, HOWEVER, AND THAT LEAVES HARSHER REMEDIES.  THE TWINS HAVE A DIFFICULT TIME ARGUING AGAINST THE NEED FOR INDUSTRY CONTRACTION, EVEN THOUGH WE CERTAINLY UNDERSTAND THAT WE ARE VULNERABLE TO IT.

 

THE MINNESOTA TWINS AND I DO NOT ENJOY THE POSITION WE ARE IN, AND NEITHER DO OUR FANS.  WE HAVE NOT ENJOYED OUR POSITION FOR TEN YEARS NOW AND IT IS GETTING NO BETTER.  WE RESPECT THAT MAJOR LEAGUE BASEBALL HAS AN OBLIGATION, HOWEVER, TO MAKE THE GAME COMPETITIVE.  WE HAVE TRIED TO MEET THE CHALLENGE LOCALLY, AS MOST OTHER CLUBS AND COMMUNITIES HAVE IN THE PAST DECADE, BUT WE HAVE BEEN UNSUCCESSFUL.

 

MR. CHAIRMAN, PEOPLE WHO LOVE THE GAME OF BASEBALL, AS I DO, BELIEVE FANS IN EVERY MARKET DESERVE A CHANCE TO HOPE THAT THEIR TEAM HAS A CONSISTENT CHANCE TO WIN.  THE BIGGEST CHALLENGE WE HAVE TODAY IS TO DETERMINE HOW WE CAN RESTORE THAT HOPE.  WITHOUT A NEW ECONOMIC SYSTEM FOR THE GAME OR WITHOUT PROSPECTS FOR IMPROVING LOCAL REVENUES, HOWEVER, THE RECORD WILL SHOW THAT CLUBS LIKE THE MINNESOTA TWINS CAN NO LONGER MAKE THAT CONSISTENT HOPE POSSIBLE.