River Cats GM fears for survival of minor league teams under governor’s COVID-19 plan
From the West Sacramento offices of Minor League Baseball’s Sacramento River Cats to NBA headquarters in New York, team and league officials face perilous financial questions after Gov. Gavin Newsom unveiled a gradual four-stage plan to ease coronavirus restrictions in California. One general manager fears his organization and others like it might not survive the shutdown.
Under the plan Newsom presented Tuesday, it could be several months before teams are allowed to play without spectators in Stage 3 and up to a year before live-audience sporting events are permitted in Stage 4. Revenue losses could be enormous in the NBA, NFL and Major League Baseball, but an extended shutdown might be more catastrophic for minor league operations that aren’t buttressed by multibillion-dollar television and merchandise deals, River Cats general manager Chip Maxson said.
“The River Cats understand public health and safety is everyone’s top priority and we are trying to do our part by supporting the community through hosting blood drives, working with local food banks, and checking in with our fans,” Maxson said. “The uncertainty around the governor’s timeline for fans to attend sporting events creates a great challenge for all teams, especially MiLB teams like the River Cats, who are community-focused, do not have large media-rights agreements, and are 100-percent dependent on large public gatherings.
“If there are no games in 2020, the time between games at Sutter Health Park will be more than 18 months. We are trying to operate as lean and as efficient as possible, but the reality is that no business is set up to go 18 months without revenue.”
Maxson said the River Cats have already laid off two-thirds of their full-time staff. The 20 staffers who remain are working reduced hours. Many minor league teams across the country are taking similar steps. Maxson said two teams called him Thursday to ask how the River Cats determined which employees to keep and which ones to let go.
“I can’t speak to all teams, but this morning I’ve been on calls with a few other minor league teams, and there are weekly calls and then some larger league-level and national calls, and the majority of teams are struggling mightily,” Maxson said.
Kings, Republic FC assessing ‘impact’
The NBA and its teams have been reluctant to speculate on the uncertain financial impact of the coronavirus shutdown. The extent of the NBA’s revenue losses will depend on how, when and if the 2019-20 season continues, but some estimates suggest the league could lose more than $1 billion if the rest of the season is canceled.
“Our top priority remains everyone’s health and well-being,” the Kings said in a written statement provided to The Sacramento Bee. “These are unprecedented times and, like other companies across all industries, we are constantly evaluating how to manage the economic impact on our business and organization. We continue to work with the NBA as they review all options for return to play in consultation with public health officials and in line with governmental directives and guidance.”
NBA spokesman Mike Bass said the league continues to consult with health experts, but no decisions have been made regarding the remainder of the season.
“There are a number of critical factors in determining when and how we resume play,” Bass said. “We are working closely with public health experts and infectious disease specialists and paying close attention to government guidance, but it’s too early to predict the path forward with certainty.”
Sacramento Republic FC, a United Soccer League team slated to join Major League Soccer in 2022, played one game before the USL suspended its season March 12. Republic FC said in a statement the organization is working with its USL partners to explore all options with “several pathways under examination.”
Despite the shutdowns, and despite their economic struggles, the Kings, Republic and River Cats have continued to engage fans through community outreach and social media initiatives.
“We believe in the future of Sacramento and the future of soccer in this region,” Republic FC said in a statement. “The current environment has an incredible impact on our business, but our work in the community has emphasized more than ever how vital Republic FC is to the morale and mentality of this region, and our mission to support that remains unchanged.”
‘The stark reality’
The River Cats, an affiliate of the San Francisco Giants and the 2019 Triple-A national champions, were scheduled to play their season opener April 9 before the Pacific Coast League season was postponed due to the coronavirus pandemic. The River Cats have been a summertime staple in Sacramento since 2000, when former owner Art Savage purchased the Vancouver Canadians and moved the team to Northern California. Savage’s widow, Susan Savage, became majority owner when her husband died in 2009.
Attendance at their waterfront ballpark has declined in recent years, but the River Cats led minor league baseball in attendance during their first eight seasons in Sacramento, when they were affiliated with the Oakland Athletics, and again in 2015. Last season, the River Cats drew 549,440 over 70 home dates, averaging 7,849 per game at Sutter Health Park. Now, those seats are empty, all the families and groups of friends who once filled the stadium are under stay-at-home orders, and the River Cats fear they might not recover if they are unable to salvage their season.
“Many people believe we are owned by the San Francisco Giants, but that is not the case,” Maxson said. “The River Cats are a local, family-owned, small business, and like many other small businesses, we would need support from other sources in order to sustain our business.”
Maxson said the River Cats received a Paycheck Protection Program (PPP) loan under the $2 trillion Coronavirus Aid, Relief and Economic Security Act (CARES), but the loan is not enough.
“While that will help a little bit, we need more,” Maxson said. “As Congress continues to look at how they can help businesses, we want to make sure that we’re not overlooked.”
Maxson said fans can support the team by going to Rivercats.com to purchase merchandise and Flex-5 ticket vouchers redeemable this season or next season — whenever the River Cats are able to play ball.
“The stark reality is that it may not be possible for the River Cats and many other MiLB teams to survive a no-baseball scenario in 2020 without financial help,” Maxson said. “Unlike many other small businesses who are anticipating reopening in the next few weeks, with this (four-stage) plan, the River Cats and other MiLB teams would be asked to stay closed much longer. Simply put, that would not be feasible without financial support.”
This story was originally published May 1, 2020 at 4:00 AM.
