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Maryland Business

Top 5: ‘It was a price I couldn’t refuse’

By: Jon Sham

The Orioles had their home opener on Monday, and tens of thousands of fans turned out. And East Baltimore Development Inc. has bought out D and A Liquors from Daisy Jackson, who has worked there since 1975. Those stories and more in this week’s business top 5.

1. Orioles help lift spirits of Camden Yards vendors with Opening Day win – by Rachel Bernstein

Vendors and concession stand owners inside and outside Oriole Park at Camden Yards Monday were equally positive about a strong Opening Day bringing in the cash.

A re-energized team and beautiful weather made for a particularly busy home opener as the streets around the ballpark were flooded with fans in orange.

2. 2 plans call for more residences in downtown Baltimore – by Melody Simmons

Downtown Baltimore needs to grow, and adding residences is among the best ways to do that, according to two development plans for center city unveiled Wednesday.

One plan, from the Downtown Partnership of Baltimore, highlights a need to whittle down the high vacancy rate for office space, use existing and new development incentives to spur redevelopment and convert of old office space to residential units.

3. Bill limiting credit checks by employers approved – by Nicholas Sohr

The General Assembly passed legislation Wednesday that would limit businesses’ ability to use the credit histories of job applicants in making hiring decisions.

The House of Delegates approved SB 132 on a 90-46 vote and the Senate voted 33-13 on twin legislation, HB 87.

Sen. Catherine E. Pugh, D-Baltimore City, said technical amendments tacked on to the bills by both chambers made them identical, meaning routine concurrence votes on both are all that stands between the legislation and the governor’s desk.

4. EBDI is buying out Miss Daisy for $250K – by Melody Simmons

Daisy Jackson has worked the small, cut-rate liquor store she owns at Eager Street and North Broadway since 1975.

But all week, the 74-year-old was clearing out nearly a lifetime of memories at D and A Liquors as she prepares to vacate the red-brick row house decorated with brown paneling, wood shelves, bulletproof Plexiglas and posters for beer and alcoholic beverages.

5. Motion to dismiss State Center lawsuit has 3-hour hearing – by Melody Simmons

Did they “hide in the weeds” or are a group of downtown property owners on the brink of financial ruin?

A Baltimore City Circuit Court judge heard a motion Wednesday to dismiss a lawsuit by members of the group, who claim the $1.5 billion State Center redevelopment will render leasing in center city null and void.

Category: Business

Orioles headed toward big attendance drop

By: Liz Farmer

With 15 home games left in the season, the Baltimore Orioles are staring down an abysmal attendance hole they won’t remedy before the end of the year.

Just 1.37 million people have gone to Camden Yards this year through 65 games — a 13.5 percent drop in attendance from this point last year. I doubt it will end that low with the Red Sox and Yankees each due for one more weekend visit here before the end of the season. But a 10 percent drop in overall attendance and a total of just over 1.7 million total fans isn’t out of the question either.

Read the rest of this entry »

Category: Angelos, Baltimore, Baseball, Business

O’s ranked 20th in MLB popularity poll

By: Liz Farmer

The Baltimore Orioles are ranked 20th out of the Major League’s 30 baseball teams in popularity, according to a Harris Interactive poll released this week. That’s down from last year’s ranking of 17th. The poll was conducted June 14 to 21.

But hey, at least they beat the Washington Nationals (ranked 27th). At first that was a surprise to me considering the poll was conducted during the Stephen Strasburg Era. After all, you’d think a phenom pitcher would give the Nats, who also came in last year at 27th, a few more points. But baseball in D.C. is still young and the fanbase is fickle. And while Strasburg may be a rock star here, nationwide, he’s just somebody you don’t want pitching against your team.

Meanwhile the New York Yankees are ranked first for the eighth-straight year. The Boston Red Sox are ranked second. If he saw the results before he died this morning, that had to give owner George Steinbrenner one last smile.

Here are some more interesting fun facts from the poll:

Over one-third of Americans (36%) say they follow Major League Baseball, a number that is down from last year when 41% said they followed baseball and 40% said so in 2008. Looking at who follows baseball, men are more likely to do so than women (46% versus 27%). Also African Americans are more likely to be followers of the sport, compared to both Whites and Hispanics (41% versus 36% and 34%). There is also a regional divide, as almost half of Easterners (48%) say they follow baseball, compared to one-third of Westerners (34%) and 29% of Southerners.

Category: Baltimore, Baseball, Business

Even the O’s get a piece of the Strasburg action

By: Liz Farmer

Hey, remember that deal Peter Angelos finagled back in 2005 when the Nationals came to D.C.? You know, the one where the Orioles retain majority ownership of MASN while getting the rights to broadcast Nationals games?

You know where I’m going with this.

While not so impressive last year when the Nationals ratings were just flat-out embarrassing (so bad that the Orioles broadcasts were outdrawing the Nationals in the D.C. market), the expected ratings boost for rookie Stephen Strasburg’s starts this year will mean more money in Angelos’ pocket. Without having to lift a finger.

I asked MASN Spokesman Todd Webster about that relationship and he said good ratings benefits both clubs.

“The Orioles are the majority owner of MASN and the Nationals are also an owner,” he said. “And the better both teams do and the better the ratings do, the better it is for both teams.”

MASN ad rates have doubled since Strasburg’s start tonight was announced. Whether that keeps up depends on his performance. A few nights of good ratings and boosted ad sales does not make that big of a difference in the grand scheme of things. But if Strasburg performs well this season, demand for MASN ad space will be higher next season and the Orioles owner will reap the benefits of that.

Yes, I know the Nationals’ financial rewards if Strasburg pans out will be far greater than the Orioles’ rewards … but they’re not the ones who took a $15.1 million chance on a rookie pitcher, either.

Category: Angelos, Baltimore, Baseball, Business

Firing Major League Baseball managers — the new national pastime?

By: Liz Farmer

It was brought to my attention today during a conversation with a former baseball executive that these days, MLB managers are the default scapegoat when things aren’t going well. Firing the manager is now often a PR move instead of an answer, and that seems to have been the case with the Orioles and Dave Trembley this morning.

I have to say I agree.

After all, Trembley in 2007 didn’t inherit a shiny new Lexus and run it into the ground in three years — the Orioles were the Ford Pintos of the MLB in 2007 and pretty much nothing on paper has changed since then. Sure, they have “young, exciting” guys but that’s all they are so far — young. And occasionally interesting. But they’re not producing. Neither are the old, boring guys for that matter (ahem, Kevin Millwood).

So how much of this lack of production is Trembley’s fault? He was hired to bring about change and that’s certainly not happening. But it also seems these days in baseball it’s easier to can the guy who fans see with the players rather than to pay attention to the man behind the curtain (that would be Vice President of Baseball Operations Andy MacPhail).

In many cases, firing the manager is now a symbolic “mea culpa” to fans that doesn’t really do anything for the actual problem. That would be like BP firing its spokesman for misspeaking during a press conference on the oil spill — it’s not ideal but that doesn’t really stop the larger problem of millions of gallons of oil leaking into the Gulf of Mexico.

In this case it seems firing Trembley is more of a move to appease fans. For the last year, the media and fans have been calling for Trembley’s head. Now they’ve got it. Now what? Do we really expect interim manager Juan Samuel to turn things around or is he getting a free pass on the rest of the season? Two months into the season, the remaining four months of the season don’t matter anymore.

Take Red Sox manager, Terry Francona — in his four seasons with the Philadelphia Phillies, his managerial winning percentage was .440 and his team never finished higher than third place in the National League East. In five years with the Sox, Francona has a better ball club — and two World Series titles.

I’m not saying Trembley is some gem that the Orioles are stupidly letting go. The team lost 16 of its first 18 games this season and has dropped 10 of its last 11. Puh-lease.

And I’m definitely not saying every manager that’s fired doesn’t deserve it (Trembley’s predecessor, Sam Perlozzo, most definitely needed to go). But I am saying this decision seems to be less based on business and more based on appearances.

Category: Baltimore, Baseball, public relations, sports

Ripken back to the Orioles?

By: Liz Farmer

Cal Ripken Jr. issued a statement yesterday regarding recent rumors O’s owner Peter Angelos rejected his proposition of working for the team.

After confirming Angelos’ denial that the Orioles owner did not turn Ripken down (that, in fact, no such offer was made), Ripken did confirm they have been talking:

I have enjoyed those talks very much, and yes the subject has been broached about me potentially joining the organization. I look forward to those talks continuing.

I have been consistent in my statements about a return to baseball since my retirement in 2001. With my son Ryan approaching the end of high school in a couple of years I have been thinking more seriously about a return to the big league game. I am more excited now to explore all opportunities and find the right situation that could lead me to the next phase of my life.

I have said and written many times that Cal Ripken is a guy who just never seems to mess up. He was a role model on the field during his career and has continued that example off the field in his business career.

If he returned to the Orioles now, it would be a mistake. After a dozen losing seasons and a 2-12 start this year, O’s fans are ready to jump on ANYTHING significant and hail it as a tidal wave of new hope for the organization.

Realistically, Ripken cannot single-handedly turn the Orioles from losers into winners, but that’s what the expectation will be if he signs back on now. Ripken is so revered that if he doesn’t meet expectations, he’s not going to lose fans. But my bet is he’ll lose some respect. There will be a chink in the armor.

Of course, now that the cat’s out of the bag, things are more difficult if Ripken ends up not joining the team. If both parties do the PR-neutral thing and announce together that they agreed to keep things as they are, Angelos will probably be blamed by Baltimore fans.

If Angelos offers Ripken a job and Ripken declines, well, Angelos will still probably be blamed because that’s just how O’s fans roll now.

But Ripken won’t look too good either.

Category: Angelos, Baltimore, Baseball, Business

O’s and Rays draw lowest attendance in Camden Yards history

By: Liz Farmer

Oh, how quickly they fall.

From the biggest Opening Day crowd last Friday to the lowest game attendance in Camden Yards’ history, if there’s one thing you can say about the Orioles, it’s that they keep you guessing.

But as a fan, that’s not really a good thing. Not that great for a business, either.

The O’s hosted the Tampa Bay Rays last night, and this year’s squad claimed the dubious honor of drawing the fewest number of fans ever to attend a game in Camden Yards’ 18-year history. Monday’s crowd was announced at  9,129 — and that’s the official count, which includes season ticket holders, so it’s typically higher than the actual number of people there.

There’s really no silver lining you can put on this one. Fewer than 10,000 fans in a ballpark that can hold almost five times as many people just stinks. But I’ll give you a little perspective on on it:

Tampa Bay is one of the worst-drawing teams at Camden Yards. Even Toronto last year averaged nearly 21,000 per game at Camden Yards. Last year Tampa averaged 14,770 people per game in Baltimore, drawing roughly 129,000 people to Camden Yards over nine games — and three of those games were on the weekend.

Which brings me to my next point: Monday games are duds (note: exception made here for Red Sox or Yankees games). Actually, Monday through Thursday games at Camden Yards are pretty poorly attended. Last year, the Orioles averaged 22,743 fans per game on Mondays — but eliminate the two Red Sox and Yankees games and that average goes down to 17,076.

Tuesday through Thursday games last year averaged between 16,000 and 18,700 — snoozefest. Meanwhile weekend games fared far better — Friday attendance averaged 28,774, Saturdays 31,792 and Sundays 25,755.

Lastly, the last time Tampa Bay played here on a Monday, 10,628 people showed up. So with an unproven Orioles squad and so early in the season, should we really be surprised so few people came to the game last night?

No — but like I said before, it still stinks.

Category: Baltimore, Baseball, Business

Orioles set spring training attendance franchise record

By: Liz Farmer

Not only did the Orioles spank the New York Mets 11-0 Saturday in their final spring training game, the team left preseason with a bang by surpassing 100,000 in attendance for the first time in Orioles history.

In the club’s first spring in Sarasota, Fla., the team drew 102,219 fans for an average of 6,815 fans per game. That’s a 39 percent increase from 2009 when the team played in Fort Lauderdale. The figure also represents the largest increase in Major League Baseball this spring, according to an Orioles news release.

“Our already high expectations have been easily surpassed by the outpouring of support from the local community, its citizens and business and political leaders,” said Orioles spokesman Greg Bader in the release, who noted attendance was a mix of the local community and “thousands of fans from the Mid-Atlantic region.”

Ed Smith Stadium’s capacity is about 7,500.

A lot of this is likely due to the excitement over the Orioles being in a new spring training location — especially since it seems like this attempt to move from Fort Lauderdale is almost as old as some of the Orioles’ young starters.

Other clubs this year have been enjoying a spring training attendance bonanza, as noted by the Fort Myers, Fla. news-press.com. The Boston Red Sox, who play in a park about the same size as the Orioles have sold out more than 100-straight spring training games (not a shocker). The New York Yankees, the Philadelphia Phillies and the Chicago Cubs, who all play in larger ballparks, all have average home attendance of more than 10,000.

The Tampa Bay Rays attendance, however, has dipped from 2009 (their first season after their World Series appearance) to 6,004 in 2010 from from an average crowd of 6,513.

The Red Sox move to a new stadium on Daniels Parkway in 2012 with a capacity of 11,000. Somehow I doubt they’ll have trouble filling up that place too. After Ed Smith Stadium is renovated this year, its capacity will be increased to 9,000. I wonder how the O’s will fare with keeping capacity percentage up?

Maybe 2011 will be just as good because the renovations will continue to draw people. But if Tampa Bay is any indicator, excitement only lasts a year before it goes back to product on the field. And that one’s still a work in progress.

Category: Baseball, Business, Orioles

Orioles fan loyalty ranks at bottom of MLB

By: Liz Farmer

In today’s story about how the Orioles can sell hope to its fans (or, really, how they can’t) several people I interviewed mentioned it’s tough to sell an intangible like a feeling or emotion.

But that doesn’t mean you can’t try to measure it.

According to New York-based Brand Keys Inc.’s Sports Loyalty Index, Orioles fans rank second-to-last in the MLB. Company founder Robert Passikoff said brand loyalty was measured using four criteria:

  • Play on the field
  • Authenticity (i.e. is the team believable; typically a new stadium boosts this category)
  • Fan bonding (does the team have people its fans can relate to)
  • History and tradition

Um, guess which category is bringing the 12-straight-losing-seasons-Orioles down? Yeah. It’s that one.

And no wonder that the team’s ranking is sandwiched right between the Kansas City Royals (25 years since a postseason appearance and one winning season in the last 15) and the Pittsburgh Pirates (who hold an MLB-record 17 straight losing seasons).

“Losing isn’t everything but it’s a lot,” said Passikoff. “You don’t have to always win but you have to play well and you can’t just do it on history and tradition alone.”

But here’s some good news for O’s fans who are reading this and getting more insulted by the minute (by a New Yorker whose wife is a Derek Jeter fan, nonetheless). Fan bonding has improved over the last year, a direct effect of the team developing players within its minor league system.

“Their issue has always been of fan bonding,” said Passikoff. “Once [Cal] Ripken [Jr.] was gone you didn’t have a lot of people to look for. That changed last year.”

Category: Baltimore, Baseball, Business, Orioles, marketing

Gibbons closure: what’s to become of the Babe Ruth legacy?

By: Liz Farmer

Questions are swirling about what will happen to the Cardinal Gibbons School property if parents are unable to succeed in keeping the school open. Aside from the emotional connection many people have to the school, there’s one glaring historical reason that property might be worth saving:

Babe Ruth.

Ruth attended the school from 1902-1914 back when it was St. Mary’s Industrial School for Boys and played baseball there until he was signed into the minor leagues by the Baltimore Orioles. The original Yankee Stadium may have been “The house that Ruth built,” but the baseball field at Cardinal Gibbons is where Ruth first became a star.

The Archdiocese of Baltimore says it doesn’t know what it wants to do with the properties of the 13 schools it’s closing this summer. But for the sake of preserving history, special consideration should be made for the Cardinal Gibbons property — or at least the ball field. I’m told it’s also something the Babe Ruth Birthplace Museum here in Baltimore is keeping an eye on.

If efforts to keep the school open fail, should Baltimore still fight for this property’s preservation? On the one hand, we are talking about a square of dirt, some bases and a backstop. And the baseball diamond’s alignment today is not the same alignment as it was when Ruth played. But on the other hand, it’s one more piece of history in Baltimore that could be saved from a bulldozer — and if it’s preserved smartly it could be another tourist attraction for the city.

Should Major League Baseball, the Baltimore Orioles or the New York Yankees step in to do something about this?

Category: Baltimore, Baseball, Business, real estate, tourism

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