Nippon Professional Baseball - Financial Problems

Financial Problems

Financial problems hinder the league as a whole, but the problem is not a simple one to solve. It is believed that with the exception of the Yomiuri Giants and the Hanshin Tigers, all teams are operating with considerable subsidies, often as much as ¥6 billion (about US$73 million), from their parent companies. A rise in the salaries of players is often blamed, but, from the start of the professional league, parent companies paid the difference as an advertisement. Most teams have never tried to improve their finances through constructive marketing. Until Nippon-Ham Fighters moved to Hokkaidō, there were six teams in Tokyo and its surrounding area and four teams in the Osaka–Kōbe region before Nankai Hawks (now Fukuoka SoftBank Hawks) moved to Fukuoka. The market was flooded, but this was considered acceptable, as there were no professional team sports challenging baseball's popularity.

Until 1993, baseball was the only team sport played professionally in Japan. In that year, the J. League professional association football league was founded. The new football league placed teams in prefectural capitals around the country - rather than clustering them in and around Tokyo - and the teams were named after their locations rather than after corporate sponsors. Some Japanese baseball teams responded to the success of the J. League by de-emphasizing the corporate sponsors in their marketing efforts and/or by relocating to outlying regions of the country.

The wave of players moving to Major League Baseball, which began with Hideo Nomo "retiring" from the Kintetsu Buffaloes, then signing with the Los Angeles Dodgers, has also added to the financial problems. Attendance suffered as teams lost their most marketable players, while TV ratings declined as viewers tuned into broadcasts of Major League games. To discourage players from leaving to play in North America, or to at least compensate teams that lose players, Japanese baseball and MLB agreed on a posting system for players under contract. MLB teams wishing to negotiate with a player submit bids for a "posting fee", which the winning MLB team would pay the Japanese team if the player signs with the MLB team. Free agents are not subject to the posting system, however.

When the Boston Red Sox signed Daisuke Matsuzaka in 2006, he became the most expensive trans-Pacific transfer ever. While details remain undisclosed, several sources cite Matsuzaka as having received a guaranteed $52 million for a six-year contract (with elevator clauses potentially bringing the value up to $60 million), in addition to the $51.1 million posting fee that the Red Sox paid his former team, Seibu Lions, to release him. The record transfer amount was broken in 2012 when Yu Darvish signed a six-year, $60 million contract with the Texas Rangers, who had paid a $51.7 million posting fee to the Hokkaido Nippon-Ham Fighters.

On September 18, 2004, professional baseball players went on a two-day strike, the first strike in the history of the league, to protest the proposed merger between the Orix BlueWave and the Osaka Kintetsu Buffaloes and the failure of the owners to agree to create a new team to fill the void resulting from the merger. The strike was settled on September 23, 2004, when the owners agreed to grant a new franchise in the Pacific League and to continue the two-league, 12-team system. The new team, the Tohoku Rakuten Golden Eagles began play in the 2005 season.