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Baseball as a Business
TRANSCRIPT

With opening day just past, the Red Sox versus the Yankees is once again the best rivalry in all of sports. And just as surely, the battle is paying financial dividends for both teams. But it is Boston that remains the fiscal, as well as competitive, underdog—the cursed franchise that all New England loves to curse. Apart from the Yankees' having captured 26 titles since the Red Sox last won the World Series in 1918, Boston plays in a smaller stadium in a less lucrative media market. But Boston is taking big steps to improve its record and revenues. Red Sox CEO Larry Lucchino is hardly as visible as the on-the-field members of the Red Sox. But behind the scenes, Lucchino is the central player in Boston's strategy, not only to compete with the Yankees, but to revolutionize the business side of the game. Baseball may be about fields of dreams, but sentimentality doesn't pay the bills. While the baseball team pursues its October strategy—what the Red Sox term "The Hunt for a Red October"—management is on a relentless quest for more revenue. Mark Starr joined us Wednesday, April 14, at noon ET for a live talk on how the beleaguered team aims to change its fortunes, both on the field and off.
Read the transcript below.

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Mark Starr was named a senior editor in March 1998 and continues to serve as NEWSWEEK’s Boston bureau chief, where he has been headquartered since 1985. Starr has also held the title national sports correspondent since 1992. Before moving to Boston, he spent four years as a general editor in National Affairs. Starr has covered seven Olympics, beginning with the Winter Games in Albertville and the Summer Games in Barcelona back in 1992. Before the most recent Salt Lake Olympics, he wrote a cover story on American skating queen Michelle Kwan and, during the Games, covered both figure skating's judging scandal and Sarah Hughes' upset gold medal. In December 2001, Starr profiled Hughes in NEWSWEEK’s year-end issue as the "Athlete to Watch" in 2002, calling her a strong upset possibility in Salt Lake.

Starr has also profiled a wide range of top personalities and performers in all sports including basketball's Shaquille O'Neal and Kobe Bryant, baseball's Pedro Martinez, NFL coaches Steve Spurrier and Bill Parcells, skating star Tara Lipinski, tennis' Martina Hingis, boxing champ Evander Holyfield, track stars Marion Jones, Michael Johnson and Carl Lewis, soccer superstars Roberto Baggio and Mia Hamm, Olympic gymnast Shannon Miller, speedskating queen Bonnie Blair and golfer David Duval.

Prior to joining NEWSWEEK, Starr covered Central America for the Chicago Tribune during the Sandinista revolution of the late '70s. He was also a reporter for The Wall Street Journal, the Rochester Democrat & Chronicle and the San Jose Mercury-News. Starr, a native of Boston, holds a B.A. from Cornell University and an M.A. in journalism from Stanford.


Mark Starr: Welcome to all my friends in Red Sox Nation, to all fans of the game and even to you Yankee-lovers. I'm Mark Starr, national sports correspondent for Newsweek. I'm here to talk about the business of the Red Sox (or the BoSox team if you prefer), the Red Sox-Yankees rivalry, which kicks off again Friday night in Fenway Park, the business of baseball, A-Rod, George Steinbrenner, "Moneyball", steroids or anything your heart desires on our former national pastime—a game I still love despite all its many missteps.

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Seattle, WA: What element was missing from the Sox last year—from the managerial perspective—that they hope to fill this year?
Mark Starr: What they hope Terry Francona will bring to the table is an understanding of stats and technology, which he will use to supplement his baseball knowledge. Beyond the infamous Little decision to stick with Pedro, when stats said teams lit him up after he passed 105 pitches, the Red Sox were furious that Little didn't use a lot of expensive video they worked up for him before the Oakland series. The Red Sox always intended to fire Little. He just made it easier for them. One sign of change: the other day he switched his batting lineup and put Bellhorn, who was hitting under .200 at the time, in the leadoff spot because he had hit Batista well in the National League. Bellhorn was on base four times. Grady Little would never have seen that stat or switched his lineup if he had.
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Oakland, CA: How much did the Red Sox team owners model their management style on that of the Oakland A's?
Mark Starr: Oakland is definitely a model, but the Red Sox, by virtue of being one of the richer teams in baseball, can cut it both ways. They can follow the stats line, but also keep the scouting department and the old baseball men and balance the numbers against the veterans' instincts. So they don't have to do what Toronto has done, another team cloning the Oakalnd style, and fire all the scouts. In theory at least, it's the best of both worlds.
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Washington, DC:  What do you think will happen with the possible relocation of the Montreal Expos? Is Washington ever going to get a baseball team?
Mark Starr: Well, they are supposed to resolve that this summer, but MLB is not the most reliable institution. Still, I think there is a chance that the Expos will go to northern Virginia, a chance that they will go to Portland, Ore.—and, unfortunately, probably not much of a chance that they will go to Mexico. That would be a visionary move and there aren't many visionaries at the helm of MLB.
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Boston, MA: Wouldn't the best way for the Red Sox to break their curse be to push for a real salary cap? Wouldn't that be the best way to crush George's evil empire?
Mark Starr: I think what the Red Sox did this year is exactly the best way to break their curse. They built a team for the playoffs, with three stellar starters and a strong, deep bullpen. That's how you win in the postseason. The trickier part is getting there. And the Red Sox division is so improved that the Red Sox could be a much better team and still not match last year's 95 wins. And there are two AL West teams that are strong and will be fighting for that wild-card spot, too. As for a salary cap, it might stop the evil empire, but it would hurt Boston, too, by bringing lots more teams into the competitive range. Boston right now is the second biggest kid on the block.
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North Adams, MA:
When and how did the big rivalry start between the Sox and the Yankees? Why NY versus Boston? And do you think the Red Sox really have a chance at beating the Yankees to the World Series this year?
Mark Starr: Like most rivalries, it began becuz of geographical proxmity and being in the same league. It was, of course, pumped up the Red Sox selling Ruth to the Yankees, then given a twist in the '40s when the two best players in the game, DiMaggio and Williams, were natural rivals for awards, batting crowns, etc. But for a lot of years, it's been fueled in Boston mostly by envy. I think finally the Red Sox are at a place where they may be a perennial rival, not just an occasional one.
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Buffalo, NY: Have you ever met Barry Bonds? Any sense of whether he is at all plagued by conscience, or does he sleep just fine at night?
Mark Starr: Very few actually meet Barry Bonds, tho I've been close enough in the locker room to feel the chill. I can't honestly give you that insight. He looks like a man who sleeps well at night. He is an incredible specimen. What I've found in sports is that most folks who cheat convicne themselves that everyone else is or was doing it—and I'm not sure that was as far off the mark in baseball as it sounds. I tend to be with Canseco and Caminiti when they talk about huge percentages abusing steroids in the past, not the 5-7 percent that tested positive on a test they knew was coming.
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Melrose, MA: They're not going to tear down Fenway, are they? Say it ain't so—
Mark Starr: Certainly not any time soon. the new ownership recognizes that the political and economic climate right now pretty much precludes a new ballpark in Boston and they have done a remarkable job of reconceiving Fenway to boost revenues and to be far more comfortable and fan-friendly. But there are limits to what they can do at Fenway and if the opportunity availed itself, I think they would love to build a new Fenway on the waterfront. After all, Larry Lucchino has built sensational new stadiums in both his baseball stops, Camden Yards with the O's and Petco Park with the Padres.
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Los Angeles, CA: It seems unlikely that steroids are used in baseball but not in other sports. Why is baseball taking the brunt of the media attention?
Mark Starr: Because they are so far behind every other sport in their testing procedures and because the recent home-run glut, after the first wave of celebrations, has focused attention on the possible problem. At least sports like track and field are trying to catch up with the problem and have real penalties when they do.
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Amite, LA: Is the baseball season too long? Why not cut a week of the beginning and end of the season and then make the first round of the playoffs best of seven?
Mark Starr: Of course, the season is too long. But that won't change. The reason is simple: revenues. Every owner feels squeezed and nobody is willingly going to give up six games for a few extra playoff games for the rich clubs. Looking outside at the freezing rain in Boston that just might wipe out the entire Baltimore series at Fenway, I think early April is a problem and I don't particularly like the idea of late-night games in November either.
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Boston, MA: Given the almost guaranteed disparity between the Sox and Yankees, do you suspect that the Sox have an "undisclosed" long-term strategy to build a new stadium?
Mark Starr: As I said earlier, I don't think they have an undisclosed strategy. I think they've been clear that in the future, if the right opportunity avails itself, they would like to pursue that option. And as much as I love Fenway and appreciate the improvements there, those seats and leg room weren't made for 21st-century bodies, at least not those of the aging male.
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New York, NY:  What psychological effect has Boston's losing streak had on the people of Boston and Massachusetts? Obviously losing is terrible, but do you think that people just turn off the TV when the Sox lose or do people take it more personally and are they affected in the longterm? Maybe a better question is which fans live longer, Red Sox fans or Yankees?
Mark Starr: I don't know about live longer. But the Red Sox failure fits neatly into the Puritan ethic that grounded New England. People here don't expect things to go well and the Red Sox reward them to a remarkable degree. The true debate is whether it would be as much fun as Red Sox fans think to win the World Series. Or is this tragicomedy a far better story line. Lots of teams win championship, the Marlins, for example, two in recent years. But few can match the legacy of failure, particularly the close calls. The Cubs don't even come close historicall. Last year was one fo the few exceptions. Mostly they've just been lousy.
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Newark, NJ: How old is Fenway?  Is it the oldest baseball stadium?  And do they have any plans to build a bigger one?
Mark Starr: Fenway is the oldest, built in 1912. I assure you people were smaller back then.
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Los Angeles, CA:  The owners continue to cry about competitive imbalance and the haves and the have-nots. However, the game seems pretty competitive with many small-market teams making it to the playoffs. Is baseball in as much trouble as we are led to believe?
Mark Starr: I would quarrrel with your "many" small market teams making the playoffs. Last year was a good year for the little guys with Minnesota, Oakland and Florida. But over the past decade, the big boys have absolutely dominated. Over a 162 game season, money simply talks because it means more talent and deeper talent. and the gulf keeps getting bigger. both the yankees and red sox stockpile all kinds of arms in their mnor leagues. Baseball is in trouble because it has largely lost its hold on American youth and too many of its fans are the nostalgic middle-aged like me.
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Parsippany, NJ:  How long will Larry Bowa last if the Phils continue to struggle?
Mark Starr: If the Phillies keep struggling, he will be the first manager fired—and they won't wait very long. This team was built to win.
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Berkeley, CA: When did the tradition start of having the president toss out the first baseball? Has a team owner ever so objected to a president's policies that he's refused that president the privilege of pitching?
Mark Starr: William Taft threw out the first ball back in 1910, but of course back then he didn't have to venture too far to do it with the Washington Senators still in existence. No owner has or likely will ever snub a president. Baseball has a privileged status in Washington, and that would be one way to unravel that business advantage.
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Brooklyn, NY: Will Cleveland be able to emulate successfully the business and on-field strategies of Billy Bean and Theo Epstein? And, as a second part, did John Hart actually pioneer this technique more than a decade ago of identifying terrific young players and then signing them to long-term contracts—at a bargain basement price? Or is Hart's reputation broken forever, killed by the Rangers and end of Tribe experience?
Mark Starr: Lots of question. Cleveland is going about rebuilding the right way and they really do have some terrific young talent. Problem is it takes several years to go from there to a highly competitive team and pitching is always a fragile proposition. But I'd be shocked if this Indians team wasn't a contender, at least in their central division, in two years. John Hart did do some pioneering, locking up those stars off those great Indians teams in the 90s. And I don't think his repuation is ruined by Texas. It didn't ruin George Bush's reputation and, as he so often reminds us, he did trade Sammie Sosa
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Hoboken, NJ:  Do you think that sports teams that win are successful because of management or talent?  Why is it that a team like the NY Rangers lose no matter what talent they acquire?
Mark Starr: Baseball is too long a season to win without a lot of talent. But I think the Red Sox discovered last year that chemistry can mean a lot to a team, even if it's that corny "cowboy up" crap. What Red Sox management is trying to do, and other teams as well, is to implement a system that keeps the team competitive year-in and year-out. On that identifies talent more accurately and thus has young, cheaper ballplayers coming in as they let the Nomars and Derek Lowes move on because they can no longer afford them. No team except the Yankees can pay three No. 1 starters. When Lowe's contract is up, he will be gone.
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Washington, DC: In their never-ending quest to keep up with the Yankees—and with much less revenue at their disposal—which of the free agents do you think the Red Sox will keep? Does it appear to you that they will stay in Fenway or look to a bigger, more lucrative park?
Mark Starr: As I've said, they will always be looking at the new park option because revenues is what are required and more is better. As for their freee agents, I think they will sign David Ortiz first, as he's really found a home in Boston and has proved to be one of the best clutch hitters in the league. I do not belive they will sign either Nomar Garciaparra, whose value is not what he thinks it is and probably would be happer in a Dodger uniform, or Derek Lowe, who will want No. 1 starter money. I think they would like to sign Pedro, if they are convinced his shoulder will hold up. The trickiest is Jason Varitek, an exceptional team leader. But the Epstein-Beane philosophy shies away from agian catchers, who usually go downhill fast a few years past 30. And the Varitek negotiation will be compounded in difficulty by his agent, Scott Boras, the scourge of MLB
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San Diego, CA: Any thoughts on the current trend in greater minor- league attendance? For me, it's cheaper and less tainted by corporate interests.
Mark Starr: Good ballparks, smart ownership, affordable entertainment, it's kind of a no-brainer. A family of four at Fenway is almost a $300 proposition. That's special occasion money, not regular family nights out for most folks.
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Reno, NV:  Is there a precedent of a pro sport losing so much popularity that it just goes away? I have nothing against baseball, but it certainly isn't the National Pastime anymore. Any risk that it—or a sport like hockey—ultimately just disappears?
Mark Starr: I don't know about completely disappearing, but there are sports like track and field, which was once huge in this country, that can't muster any interest now in the U.S., though track remains huge in Europe. Or boxing, if it completely disappeared, how many people would notice?
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Ocala, FL: About eight years ago, I came across a box of clothes that were given to me by a neighbot in New Jersey. At the very bottom of the box was a Red Sox uniform—pants and shirt. In the waistband of the pants are sewn the words "NO. 19 1956  SIZE 34 30INS."
The shirt has "RED" written on the front and "SOX" on the left with No. 10 on the back. Just curious to know who might have worn this uniform and how it might have made it into a box in Freehold, N.J. Thanks.
Mark Starr: The biggest change in the Red Sox is that they are fan friendly. If you
write the Red Sox, I suspect they will try to give you an answer. Charles Steinberg, the VP of public affairs, said he was shocked when he arrive at Fenway to find piles upon piles of unopened mail from fans. Now they open it and answer it.
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New York, NY:  Silly question, but which ballpark, in your opinion, serves up the best dog?
Mark Starr: I plead ignorance since I gave up the pursuit of dogs when I reached a certain age. But I will enver forget the Fenway Frank and can assure you when it comes to the best dog, that ain't it. The food that reall impressed me was PacBell or Bonds Stadium or whatever they will call it tomorrow.
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Needham, MA:  Have you been paying any attention to how the New York Times and the Times-owned Boston Globe have been covering the Yankees-BoSox rivalry? The Times publisher was quoted as saying he was bored "to tears" at his last game, two years ago. "I just hate the game."
Mark Starr: I can assure you that the rivalry is not underplayed by the Globe and the Times over the last years has finally caught up with the centrality of sports to our society. So the Sulzberger boredom has no effect on the coverage. The biggst effect was the resignation of Times editor Howell Raines, who as a southerner had an affection for college football that outstripped his interst in all other sports and for a while the paper reflected that.
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Taos, NM: What's with the mind-numbing organ playing at ball games? Can we please put this one tradition to bed already?
Mark Starr: I'm afraid the noise is not going to go away, the whole entertainment thing will become louder and more frenetic.
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Bronx, New York:  I remember the halcyon days of baseball, where the game seemed to be so much more than buying players.  Can baseball ever be as important as it was when I was a child, when we strived to be our ballplayers and going to a game was as much a religious experience for me

Was it was entertainment?  Or, has the idea of rival now only about business tactics and not that special quality that made our ballplayers legends?
Mark Starr: In a word, no. We've lost our innocence about the game and baseball itself has done a lousy job of protecting and sanctifying its history. That was what baseball had over all other sports and it let hallowed records go by the wayside in pursuit of a short-lived home run fix.
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New York, NY: What's your take on the business of record-keeping?  Do you think Barry Bonds will ever have an asterisk after his homerun total due to his possible use of steroidal "vitamins"? 
Mark Starr: That's a tough one. But I think increasingly that regardless of whether there is an asterisk, that asterisk exists in the minds of a lot of fans. The Bonds sage wil lbe fascinating, now that the feds have samples and know whose they are.
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New York, NY: When you go to a baseball game, I assume you get to sit in the press box. What's that like—what do you get to see, hear, do that the regular Joes don't? Are you allowed to root, root, root for the hometeam?
Mark Starr: No cheering in the press box remains the maxim. I much prefer to be in a seat with the fans. The press box is sterile and pretty much all business. Other than the statistical handouts, we don't see or hear much more than any Joe.
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Plano, TX: Houston seems stacked this year, and Clemens looks as good as ever. Most of the papers have the Astros finishing behind STL and the Cubs. How can this team not contend?
Mark Starr: I picked them for the playoffs, tho I admit for the wild card. Clemens does look great, but it's a long season and he is an older man, no matter an older man in great shape.
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Nashville, TN: Baseball in the Olympics has been a disaster for the U.S. But international baseball competition in theory is compelling. Do you think there will be a Baseball World Cup?
Mark Starr: I do think there will be one and it should be a blast. That looks to be the deal the union is seeking to change the drug-testing rules. Give us a world cup and we will accomodate you more on drugs. It's just the timing that is very difficult. Teams are scared to have their out of shape stars go compete in a world cup before the season.
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Oakland, CA:  How unrecognizable would baseball and the BoSox be to the Bambino if he were alive today. Is it even the same game anymore?
Mark Starr: The Babe would be recognizable, but that's about all. Watch some of those old games and everyone looks like a midget. I still don't know how Bucky Dent reached the Monster net.
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Wellesley, MA: At this point, do you see any discernable differences between Tony Francona and Grady Little on the field?
Mark Starr: The discernable difference is that Francona isn't embarassed to have information at his fingertips and use it. But it's really too early to pass judmgent on his managerial acumen.
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Washington, DC: Could you give a quick overview of the Red Sox revenue streams, and any licensing restrictions by MLB and/or the networks? 
Mark Starr: That's a Harvard Business School treatise. I'll say a couple of things. They are lucky to own most of their own cable outlet and they will soon be looking for ways to build nonbaseball revenues, namely revenues away from the park.
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Washington, DC: What left-handed pitching prospects do you see as possibilities for the Sox come trading deadline?
Mark Starr: Unless there are serious injuries, I don't see the Red Sox in the market for pitching this year. They have terrific pitching and are deep and this lefty malaska sure showed something in Sunday's game. There are two guys they would always have their eye on, as would the Yanks, second basemen Jose Vidro from Montreal and outfielder Carlos Beltran from KC. But as long as KC competes—and I think they will all season—it's unlikley beltran will be available.
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Brooklyn, NY: At what point does this become all about money? I mean, I'd rather watch a minor-league game where it's unquestionably more about the talent (hit and miss though it may be).
Mark Starr: That point was long ago and, at a certain point, the fan has to get over it too. But the minors can be a nice respite for the jaundiced fan.
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New York, NY: Do you think the change in management and management style at the Sox will really make a difference this season?
Mark Starr: I think they're moving in the right direction. There are too many random factors that affect the outcome, but the g.m. and the manager have to be on the same page and they weren't last year. they are now. that's a positive.
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Boston, MA: With the steroids cloud still looming over baseball, should any new records (i.e., Bonds's vaulting Mays on the HR list) get automatic asterisks until the sky clears?
Mark Starr: One guy who writes a very good daily Web column on baseball, called Billy-Ball, always refers to the slugger as B*nds. But I think until there is absolute, unequivocal proof of wrongdoing, no asterisks will enter the record book. the Roger Maris one left such a bad taste.
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Somerville, MA: What is the relationship between managerial strategy and on the field performance.  Can we really expect that a change in behind the scenes plotting will influence the ability of the Red Sox to go all the way? 
Mark Starr: Maybe, maybe not. But last year, all you needed was it to effect one or two innings. They have the right sytem in place now. Most likely, it will just lead to more tears because, ultimately, that is the Red Sox legacy. And as writer, even though a Sox fan, I can't say that's a horrible thing.
_______________________

Mark Starr: Thank you all for joining me. I wish all your teams—except for that one—good luck this season. I think it's going to be a entertaining one on the field and quite compelling off the field, too, as the federal investigations proceeds. Quite a doubleheader. Again, thanks.


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