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September 7, 2012

BP Unfiltered

Economists Warn: All Baseball Clubs To Face Bankruptcy

by Sam Miller

From the Pittsburgh Press

University of Pennsylvania economists warn that major league baseball payrolls may triple in the near future, threatening every team with the "spectre of bankruptcy."

"Pressure will come from the non-superstars," said Jim Eshoff and Chris Ritz, economists for the university's prestigious Wharton School who say they are card-carrying baseball fans.

They said the salary glut will have dire effects on the health of major league franchises, even the healthiest.

"If competition is only a reality among a certain few teams," they said, "the fans and their dollars may go elsewhere.

"No team is immune to the spectre of bankruptcy," the economists said.

-- April 20, 1977 -- 

Sam Miller is an author of Baseball Prospectus. 
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