Baseball Strike Could Cost $280 Million in Lost Merchandise Sales

The ongoing players' strike in Major League Baseball could result in significant losses for the industry, with up to $280 million in lost merchandise sales. Retailers are postponing orders for goods due to uncertainty about the resumption of play in the spring, which is expected to cut 10 percent from projected 1994 sales of $2.8 billion. The strike has already had a devastating impact on sales of baseball clothing and other merchandise, with some retailers reporting declines of up to 50 percent.

Key Takeaways:

• The baseball strike could cost up to $280 million in lost merchandise sales, according to estimates.
• Retailers are postponing orders for goods due to uncertainty about the resumption of play in the spring, with some manufacturers needing six months' notice to make timely deliveries.
• The strike has already cut 10 percent from projected 1994 sales of $2.8 billion, with sales of baseball goods declining nearly 50 percent at Sears, Roebuck & Company.
• The National Hockey League has been less affected by the strike, with merchandise sales 25 percent ahead of last year's pace and expected to top $1 billion by season's end in June.
• Retailers such as Merle Harmon's Fan Fair and the Delaware North Companies are feeling the pinch, with sales expected to decline by up to 25 percent in some cases.
• The strike has also had a negative impact on companies that supply hot dogs and other snacks to baseball and hockey games, with sales expected to decline by up to 50 percent.

Statistics:

• $280 million: Estimated lost merchandise sales due to baseball strike
• 10 percent: Reduction in projected 1994 sales of $2.8 billion due to strike
• $2.8 billion: Projected 1994 sales for Major League Baseball
• 50 percent: Reduction in sales of baseball goods at Sears, Roebuck & Company
• 25 percent: Increase in merchandise sales for the National Hockey League ahead of last year's pace
• $1 billion: Expected revenue from National Hockey League merchandise sales by season's end in June
• 143: Number of stores in the Merle Harmon's Fan Fair chain
• $2.5 billion: Retail merchandise sales for baseball in 1993
• $40 million: Total sales for minor league merchandise in 1993
• 9 percent: Average royalties received by major sports leagues from licensed merchandise sales
• $4 million: Estimated annual royalties received by each team in the National League
• $1.1 billion: Annual sales of the Russell Corporation
• 10 percent: Portion of Russell Corporation sales from licensed items

Sources:

• "Strike Could Cost Baseball $280 Million" by an unnamed author, published in an unspecified source
• Carol Coleman, spokeswoman for Major League Baseball, quoted in an article published in an unspecified source
• Keith Harmon, spokesman for Merle Harmon's Fan Fair, quoted in an article published in an unspecified source
• Andrew Gaffney, editor of Sporting Goods Business, quoted in an article published in an unspecified source
• Tom Pavsek, divisional men's sportswear merchandise manager at Sears, Roebuck & Company, quoted in an article published in The Daily News Record
• Karen Raugust, executive editor of The Licensing Letter, quoted in an article published in an unspecified source
• Rick Dudley, chief operating officer of National Hockey League Enterprises, quoted in an article published in an unspecified source
• Bob Schwartz, vice president of sales for the Vienna Sausage Manufacturing Company, quoted in an article published by The Associated Press
• Samuel Gifford, vice president of Delaware North Companies, quoted in an article published by The Associated Press