How Cubs affiliates are tackling financial challenges of coronavirus pandemic

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The Myrtle Beach Pelicans were scheduled to host a happy hour on Thursday. But Tropical Storm Bertha, which hit the South Carolina coast Wednesday morning, had different plans. General manager Ryan Moore rearranged his schedule, pushing back an interview 15 minutes, to address the fallout.

“So 2020,” he posted to Twitter.

The Cubs Class A Advanced affiliate postponed happy hour until next week.

With the Minor League Baseball season suspended indefinitely, and an increasing number of states reopening their economies, the Cubs affiliates are relying on other activities to help weather the blow of the coronavirus pandemic. The MiLB season hasn’t been officially cancelled, but it’s expected to be.

Officials from all four of the Cubs full-season affiliates wouldn’t rule out the possibility of a minor league season, but all four acknowledged that their optimism was fading.

“Personally, I don’t think we’ll have a minor league season,” said Chris Allen, president of the Double-A Tennessee Smokies. “I hope we do; I hope I’m wrong. It just seems like there are too many moving parts to put this together. I see what they’re trying to do at the Major League level, and it seems like it’s just too much to pull off with every state and municipality having different rules and regulations.”

The Oakland A’s actions this week supported Allen’s suspicions.

MLB announced in March a league-wide commitment to providing minor league players with $400 weekly stipends and medical benefits through the end of May. The White Sox and Rangers have promised to extend that support through the month of June. As of Wednesday evening, the Cubs had not announced their plan. But on Tuesday, the A’s reportedly informed their minor league players that their stipends wouldn’t continue past May 31.

“When you're reading articles like that,” said Joe Hart, president of the Class-A South Bend Cubs, “I think that just kind of further lessens my optimism about having a season because you're not going to stop paying guys if you're going to actually have a season.”

MLB’s official decision on the fate of the minor league season has taken a back seat to negotiations with the MLBPA. Until the league delivers its final word, the Cubs affiliates are scheduling what events they can.

“The timing of this couldn't be any worse for Minor League Baseball,” Moore said. “We've incurred the majority of our expenses already, ramping up for the start of the season, and have zero revenue.”

Players and coaches are on the parent clubs’ payrolls, but the affiliates are responsible for most of the other costs associated with running a baseball team. Unlike MLB, which has lucrative TV deals, the minor leagues’ business plans rely on fans in the stands.

“I don’t have any revenue if I can’t sell tickets, and I can’t sell Cokes and beers and hot dogs and souvenir hats,” said Sam Bernabe, president of the Triple-A Iowa Cubs. “That’s how I make my money. I don’t have any other revenue sources.”

Even sponsorship money disappears when there’s no one to see the advertisements in the ballpark.

“Given the opportunity to play games without fans, we would actually lose more money,” Hart said, “because now you're turning on lights, you’re trying to maintain the field on a daily basis to play at that level.”

Minor League teams are already practiced in fan and community engagement – that’s often a key piece to drawing crowds – but they’ve had to get even more creative since the season suspension.

The I-Cubs, Smokies and Pelicans all plan to host high school baseball events this summer. The South Bend Cubs are scheduled to host travel ball tournaments in June. All four are poised to welcome fans into their ballparks for those games, with health-and-safety restrictions like social distancing in place.

The teams are considering non-baseball events as well, like company picnics, outdoor religious services, food and beer festivals.

The Pelicans also obtained a Paycheck Protection Program loan, according to Moore, but he describes it as a “Band-Aid.”

“Where we need a tourniquet,” he said.

That is the case for many of the minor league teams’ workarounds this summer. Bernabe estimated that the Iowa Cubs would still need a least the next two years’ revenue to cover the losses from this season. If the U.S. is hit with a second COIVD-19 peak, it will take longer to recover.

Even layers of Band-Aids can’t do the job.

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