1873.1
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Atlantic Club Business Model is Vulnerable
| Salience | Noteworthy |
|---|---|
| Tags | Business of BaseballBusiness of Baseball |
| Location | |
| City/State/Country: | Brooklyn, NY, United States |
| Modern Address | |
| Game | Base BallBase Ball |
| Immediacy of Report | |
| Age of Players | AdultAdult |
| Holiday | |
| Notables | |
| Text | While the writer thinks the Atlantic club is ready to make a run for the pennant, our Richard Hershberger notes that its business model, under which players are paid out of gate receipts, has a troubled future. |
| Sources | Brooklyn Eagle, January 13, 1873 |
| Warning | |
| Comment | Richard Hershberger, 150 years ago in baseball, FB posting on 1/13/2023
"The condition of the Atlantics. This doesn't quite add up. The team is a co-operative nine. In other words, rather than a fixed salary, the players are paid a share of the gate receipts. This was the business model adopted by clubs that were undercapitalized. The better players generally preferred a bit more certainty about their finances. This suggests the claim about the large number of members is so much eyewash. Compare it with the Athletics, who still maintain a fraternal club structure while also paying fixed salaries.
The sad truth is that the Atlantic Club is on its last leg. A co-op nine, with no upfront costs, can survive so long as there is a driving force keeping it going. In this case that driving force is Bob Ferguson. He was notably strong-willed. This was not always in a good way, but he will keep the Atlantics together through two not-good years. Then he will be hired away by the Hartford club, and the vestiges of the Atlantics will collapse shortly thereafter.
What happened? This is an interesting question. As recently as 1870 they were a top club: the first to beat the Red Stockings. My guess is that the underlying club structure was already threadbare at that point. With full professionalism, roster building followed a new model. The Atlantic club wasn't able to keep up with new, more energetic stock companies eager to hire away the best players and the cash to do it."
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| Submitted by | Richard Hershberger |
| Submission Note | FB Posting 1/13/2023 |
| Has Supplemental Text |
1873.1 Atlantic Club Business Model is Vulnerable"
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