Normally at the mythical halfway point of MLB’s season, aka the All-Star Game, there’s a lengthy inventory of business issues to toss around at the various industry functions. Even with the considerable momentum MLB has following its best postseason in years and a memorable World Baseball Classic in March, one issue was at the forefront in Philadelphia: labor and the likelihood of a lockout in December.
There was surely plenty of hope that a lockout could be avoided, but far less optimism that a stoppage was not a fait accompli.
“They’re not making a deal without missing games,” a person with knowledge of the negotiations told Sports Business Journal.
Accordingly, among those considered sports or baseball cognoscenti in the City of Brotherly Love, there were more discussions about how many games will be missed than if.
“I don’t know what kind of value to put on that much momentum being interrupted, if it happens,” said a senior executive at one of the largest media-buying agencies, “but it’s considerable.”
Outside of licensees, some of which have lengthy lead times, few last week reported any impact on their businesses yet from a potential stoppage.
“The conversations we’ve been having with our partners are all about our momentum,” said Uzma Rawn Dowler, MLB’s chief marketing officer and senior vice president of global corporate partnerships. “That’s what we’re focusing on.”
Some safeguards for sponsors are already in place.
“For at least a year, whenever we looked at team or league MLB deals, we’ve been fortifying them with stronger force majeure or work stoppage language,” said a senior executive at a top sports/experiential agency. “With the NFL, there’s always been this confidence they are going to work out their labor situations. This one seems like it could drag on, even though MLB’s got so much positive momentum now.”
Still, there was little talk about any current effect. “Our licensing business is solid,” said Evan Kaplan, president of MLB Players Inc. and a 29-year veteran of the MLBPA. “We worry about impact, sure. But I haven’t seen anything discernible yet relative to this season, so I remain optimistic.”
Club salestypes all reported brisk sales of sponsorship assets, even with the threat of MLB’s second lockout in five years looming.
“We’re treating it like business as usual, and that’s really what we all have to do,” said Chicago Cubs Chief Commercial Officer Colin Faulkner, who was senior vice president of marketing with the Dallas Stars when the NHL lost 1,230 games and an entire postseason to a lockout. “Otherwise, you’re not prepared.”
That comparison to the hard-line NHL lockout was frequently invoked. “I’ve been through nearly every strike or lockout, and right now, this one looks like there is a willingness to lose short term for what ownership feels will be long-term gain,” said John Cordova, an independent consultant who was Coca-Cola’s group director of sports management for 27 years, preceded by marketing titles with the Milwaukee Brewers, Miller Brewing and MLB.
“We’re doing sales with blinders on to some extent,” said a Midwestern MLB team sponsorship type, “but I’d still tell you we’re having a good sales year.”
Offered a veteran MLB team sponsorship seller at a West Coast team: “So many of our local companies went through COVID that they know we’ll take care of them, even if games are missed. The difference with a lockout is that our partners will be PO’ed, which wasn’t the case with COVID.”
Corona is in its fifth year as MLB’s “Official Cerveza.” Rene Ramos, Constellation senior vice president of brand activation, was raving about consumer reaction to the bat-shaped mugs, given those quaffing Corona at the “La Playa” activation within the Capital One All-Star Village, and a lifestyle jersey program which blends game gear and beachwear with custom designs for Jazz Chisholm Jr., Mookie Betts, Pete Crow-Armstrong, Ronald Acuña Jr., Jeremy Peña and Cristopher Sánchez.
As for the pending labor situation? “It’s a bit of the elephant in the room, so we’re just planning for the best outcome,” Ramos said. “We’ve seen no impact whatsoever.”
Meanwhile, Mastercard, one of MLB’s longest corporate patrons at 29 years, added sponsorship of the ASG Red Carpet show as a new asset. “All of our activations are about getting fans and customers closer to the game and players,” said Mike Moutenot, Mastercard’s senior vice president of partnership, B2B and product marketing.
An annual ASG Mastercard Small Business Contest was won by Shana Pistilli, founder of the Rubato School of Music. The prize included a $10,000 grant and the right to throw a ceremonial first pitch at the 2026 All-Star Game.
“We’ve all been through the pandemic, so we’re all better at dealing with these,” Moutenot said. “To me, the best news is that power and reach of the sport have never been greater. It’s in nobody’s best interest to have no baseball, and we know baseball fans are enduring.”
“Industry people we’re in contact with see games being missed, and I tend to agree,” said Elizabeth Lindsey, president of brands and properties for The Team, whose MLB corporate sponsor clients are Booking.com and Sage. “But I’d also say that baseball has been on such a tear recently that the sheer amount of interest on whether a lockout will happen and how long it will last is honestly a positive reflection on where they are. People across the business care, and I remember times in the past when that wasn’t true.”
Capital One seeks extension
The Capital One All-Star Village at the Pennsylvania Convention Center drew 111,616, the most-attended MLB All-Star event since 2022 in Los Angeles when its duration was changed from five days to four. The village covered 500,000 square feet and featured more than 50 activations.
Capital One is in the final year of a five-year, reported $125 million sponsorship deal with MLB that began in 2022, but it intends for the relationship to continue.
“We look forward to being partners with MLB for a long time,” said Amit Desai, Capital One’s senior director of brand sponsorships and experiential marketing. “There’s a mutual interest in doing so, so I think we’ll figure that out.”
Labor uncertainty, however, goes beyond the players, teams and fans to include brands that sponsor baseball.
“It’s a question on all of our minds. They’re dealing with it as well. They’ve been very open about it,” Desai said. “Nobody wants a lockout. Everyone wants to have a full season. We’ve got tremendous momentum with the sport and everybody recognizes that. We’re staying out of it, but it behooves everyone to get this thing done.”
— Mike Mazzeo
