The San Francisco Giants announced over the weekend that the team is laying off 10% of its employees, or as many as 50 administrative positions, because of revenue losses associated with the COVID-19 pandemic.
Among all major league sports, it is baseball that experts say has been hurt the most since the onset of the coronavirus, which coincided with the start of this year’s baseball season.
"Major League Baseball relies a lot on its gate proceeds, its parking, its concessions,” said John Shrader, associate professor of broadcasting and sports media at the University of Nebraska. “Some would suggest that it’s in the 60-70% range. That’s what the Giants have said.”
Shrader told KCBS Radio that the team is likely looking to future uncertainties, for example, collective bargaining negotiations begin next year.
“They don’t know what the revenues are going to be next year,” he said. “They don’t know whether or not they’re going to be able to have fans in the stand, and if so how many and how much money can they make up. Of course, they’re not paying the players as much because it’s a prorated salary, but the revenues are a big concern.”
The layoffs involve baseball operations staff. No coaches or players are involved.
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