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CNN Live Sunday

Minor League Ball Teams Finding Profits through New Parks

Aired June 24, 2001 - 16:22   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BRIAN NELSON, CNN ANCHOR: America's passion for professional baseball has led to minor league teams popping up all over the map. This year Brooklyn has its first pro team since 1957. Newark, New Jersey also has a team and a shiny new stadium with a major league price tag.

CNN's Brian Palmer with the story now.

(BEGIN VIDEOTAPE)

BRIAN PALMER, CNN CORRESPONDENT (voice-over): Fans love Newark's new minor league baseball stadium.

SCOTT KESSLER: It's a very nice, fresh stadium, and we are very comfortable here.

PALMER: And the baseball is pretty good, too, usually.

KESSLER: I think it's a purer kind of baseball. I thoroughly enjoy coming here.

PALMER: The city of Newark and New Jersey's Essex County are financing the $30-plus million, 6,000 seat stadium by selling bonds backed by taxpayers. Newark's mayor says it's a good deal.

MAYOR SHARPE JAMES, NEWARK, NEW JERSEY: Some debate about $30 million, the cost of our stadium. We didn't want a mom and pop arena. We wanted one that people would be proud come and say, hey, have you been to the Bears Eagle Stadium.

RICK HORROW, HORROW SPORTS VENTURES: The business of baseball has never been better. The economic impact has been significant.

PALMER: Minor league teams have popped up all over the country in the past decades. Some call it the "Bull Durham" effect after the 1988 movie that rekindled interest in minor league baseball.

But sports economists say it's the result of a 1990 agreement that forced minor league teams linked to the majors, to fork over more profits. Stadiums are a good source of profits for teams, but not always for cities.

JAMES: Not profitable, but we're paying our note off. I think when people open up a business, they say for the first four, five years, no profits, pay bills. Right now we are proud to say we are able to pay our bills, pay our debt down, but more important, the crowds are growing.

PALMER: Economists say teams must stay in a stadium for long periods. Some say 20 years to guarantee a steady income and pay off debt. The Bears have a 10-year lease on Riverfront Stadium.

Toledo, Ohio's Mudhens signed a 25-year lease for their stadium.

Newark faces stiff competition from other minor league teams in the area, plus the big leaguers, the Yankees and the Mets, just across the river in New York City.

Still, supporters say Newark's stadium is a win-win-win situation for the team owners, local government, and fans.

VICTOR ROJAS, G.M., NEWARK BEARS: I think the appeal of minor league baseball in general is the fact that you get the entertainment value of baseball at a reasonable cost. As opposed to paying $125 for a family of 4, you can do everything for $50. And you get to see the players as they mature into the profession of big league level.

PALMER: At this point, that's good enough for Bears fan.

Brian Palmer, CNN, Newark, New Jersey.

(END VIDEOTAPE)

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