Professional Sports Franchises: A Modern Example of Marx’s Theory of Capitalism

Growing up a proud first-generation American, I truly embrace the freedoms that the United States and its democracy endorse, including a capitalistic economy. Yet, as we learned in class, Karl Marx’s writings suggested that capitalism eventually leads to a significantly larger benefit for the wealthy as they eventually use their advantage in socio-economic status to gain power and influence. Although I do not agree with the Marxist view on democracy, I do see his views come to fruition, specifically in regards to professional sports franchises, and their respective leagues.

An Uncle Sam esq poster, depicting Karl Marx
and his disagreement with Capitalism.
(Image 1 in Works Cited)

            To evaluate these ideas, I will first compare Major League Baseball to a form of government. The commissioner of baseball in theory would act as the president. Along with a multitude of other responsibilities, he oversees all baseball operations, decides when rules have been breached, and hands out punishments. His constituents are the 32 major league teams. These teams employ managers, players, and front office personnel every year in their quest to be crowned as World Series champions.

            These 32 individual teams do everything within their means to be able to win; (as firms do everything within their means to make more profit) yet there is a noticeable hierarchy in the professional sports world. Teams in larger markets inevitably have larger fan bases, which are able to land the franchise with noticeably more publicity and more importantly, more capital.

With more money to spend, front offices of the “big-city” franchises are able to sign better players and managers to help their teams succeed. In his Manifesto, Marx states “The need of a constantly expanding market for its products chases the bourgeoisie over the entire surface of the globe. It must nestle everywhere, settle everywhere, establish connexions everywhere”(Marx). Although these franchises are not necessarily expanding they are always on the lookout for the best players, and are willing to search the “surface of the globe” to find the best talent at high costs. They also

The most recent (2009) of the Yankees 27
World Series rings, sixteen more than the next team.
(Image 2 in Works Cited)

Specifically in baseball where there is no “salary-cap” or maximum payroll for a team, there is incentive for rich teams to spend more. By spending more money, teams sign better players and ultimately win more games. By winning more games, the teams win championships and the cycle continues. By winning championships teams gain power as Marx would describe, and leave the other poorer teams in the dust.

Teams like the New York Yankees and Los Angeles Dodgers are examples of these powerhouse teams. For the 2013 season, the Dodgers have already committed a league high $193,800,000 while the Yankees spend third most with $119,100,000.

How did these payrolls translate into wins? The New York Yankees and Los Angeles/Brooklyn Dodgers have appeared in a combined 58 World Series since the event’s inception in 1903. To simplify the numbers, one of those two teams has appeared in a World Series more than 50% of the time.

Magic Johnson and his group's new purchase
of the Dodger's is on the verge of bringing a
$6-7 billion TV deal. More than 26 other teams
deals' combined.
(Image 3 in Works Cited)

            With wealth as an indicator of power, these big markets and rich teams are able to spend and gain while the rest must allocate resources much more cost effectively to succeed on a similar level. This expands to sports past baseball, as in the NBA the Los Angeles Lakers, Miami Heat, and Brooklyn Nets are the top three spenders for the 2012-2013 season. Not surprising to find the Cleveland Cavaliers, Sacramento Kings, and Indiana Pacers. These three teams have combined for a total of 1 NBA title.

            Overall, by using their wealth, big market teams are able to exploit the markets by courting players and coaches for more money. This often enables them to put together the best teams, which win the most championships. Marx believed that in a Capitalist society such practices would be enacted by the “bourgeoisie” and would manipulate the lower class in their climb to power. By ignoring the less wealthy teams, influential sports franchises too are attempting a similar power climb.

Below is an updated view of Marx's beliefs:

Works Cited:

·      Marx, Karl, and Freidrich Engels. Manifesto of the Communist Party. Moscow: 
     Progress Publishers, 1969. Marxists. Web. 28 Nov. 2012. 
     <http://www.marxists.org/archive/marx/works/1848/communist-manifesto/ 
     index.htm>. 

·      Nicholson-Smith, Ben. "2013 Payroll Commitments." MLB Trade Rumors. N.p., 4 
     Sept. 2012. Web. 28 Nov. 2012. <http://www.mlbtraderumors.com/2012/09/ 
     2013-payroll-commitments.html>. 

·      Shaikin, Bill. "Dodgers, Fox Sports talking $6-billion TV deal." Los Angeles 
     Times. LA Times, 25 Nov. 2012. Web. 28 Nov. 2012. 
     <http://www.latimes.com/sports/dodgersnow/ 
     la-sp-dn-dodgers-fox-sports-6-billion-tv-deal-20121125,0,4821671.story>. 

·      Astramskas, David. "NBA Team Salaries for 2012-2013." Ballislife. N.p., 26 Aug. 
     2012. Web. 28 Nov. 2012. <http://ballislife.com/ 
     nba-team-salaries-for-2012-2013/>. 

·      Image 1: http://willamettereds.blogspot.com/2011/11/i-told-you-i-was-right-marx.html

·      Image 2: http://waswatching.com/2008/07/10/munson-memorabilia-auction-next-week/

·      Image 3: http://www.sportmanagementacademy.com/2012/04/18/the-magic-in-owning-the-dodgers/

·      Video Link 1: http://www.youtube.com/watch?v=TrWEfAxnRp0