Miami Marlins consolidate some business jobs, eliminate others because of coronavirus
About 50 Miami Marlins business operations employees who were previously furloughed were informed Friday that their positions are being consolidated or eliminated — a byproduct of the COVID-19 pandemic that has delivered a gut punch to Major League Baseball’s economics.
The Marlins are among a long list of teams who have furloughed employees or eliminated their positions since the pandemic began.
The team did not comment, but a source confirmed that the pandemic forced the Marlins to reassess their staffing model.
The Marlins employees whose job status changed Friday were previously furloughed in May. At the time, the Marlins said those employees amounted to one-third of its business operations staff.
Some of those full-time jobs eliminated Friday will become seasonal jobs. And the employees who lost those jobs are permitted to re-apply for positions that are becoming seasonal.
Also, the employees impacted Friday will receive health benefits through October, two weeks of vacation pay, and additional separation pay if they have worked for the Marlins for at least 10 years.
Forty percent of the baseball operations division — equal to 90 to 100 employees — was furloughed on June 1. Some of those baseball employees remain on furlough, but the team’s pro scouts were brought back to work a few weeks ago.
Those pro scouts are evaluating games on television, because MLB hasn’t permitted scouts to attend games due to COVID-19.
Also, the Marlins are paying minor leaguers through August, which they are not required to do.
Even before a global pandemic, the Marlins faced significant revenue challenges.
The Marlins collect only $18 million to $20 million annually from their regional television contract, by far the lowest in baseball. That contract expires at the end of the season, and the Marlins and Sinclair — which bought the Fox Sports regionals in the past year — have been negotiating an extension for months.
Sinclair has declined to say how much the pandemic has impacted what it is now willing to pay for Marlins television rights. Marlins TV ratings are modest, but ahead of last year’s numbers.
The Marlins had the lowest attendance in baseball last season and gate revenue is now completely gone because fans aren’t permitted at any big-league games.
Former longtime Colorado Rockies general manager Dan O’Dowd, now a commentator for MLB network, said the Marlins need to at least triple the annual value of their television deal and lure more fans to have any chance of long-term success.
“They have got to get that TV deal up to $70 million, $80 million [annually],” O’Dowd said. “And they have to figure out a way [post-pandemic] from a turnstile standpoint to attract a fan base to augment these young players with free agent signings and trades.”
When Sherman and 16 partners (including CEO Derek Jeter) bought the team from Jeffrey Loria for $1.2 billion in 2017, Sherman reportedly told his minority partners that he hoped to avoid cash calls. It’s unclear if that has remained the case, and if Sherman has had to cover the team’s losses on his own.
The Marlins (9-9) begin a four-game series in Washington on Friday. Their home game against the New York Mets on Thursday was canceled after two members of the Mets traveling party tested positive for COVID-19.
This story was originally published August 21, 2020 at 1:26 PM.
