Baseball business model continues to change

Chicago Cubs second baseman Nico Hoerner (2) celebrates with shortstop Dansby Swanson (7) team's win against the Milwaukee Brewers at Wrigley Field on March 30, 2013. Photo credit Kamil Krzaczynski/ USA TODAY Sports

CHICAGO (WBBM NEWSRADIO) -- It's a new year for Major League Baseball...and the business of baseball is changing.

Opening day in major league baseball is the start of a new era for minor league players.

The major league baseball players association has reached an agreement with the major league owners on a contract covering minor league players.

Smith college Professor of Economics Andrew Zimbalist outlined the deal on the WBBM Noon Business Hour.

"Minor league players now at their very lowest level are guaranteed $19,000 a year plus housing allowance and so that finally puts them above the poverty line."

That also means major league teams have a larger line item in their budgets.

"For the owners, it's not terrific news, because it means that the minor league salaries have more than doubled and already it's the case that minor league salaries and signing bonusses account for about 5 percent of all baseball revenues and that's likely go up to eight or nine percent."

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Featured Image Photo Credit: Kamil Krzaczynski/ USA TODAY Sports