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Dominicans Economic Growth From the MLB Kyle Morvan Regional Geography Professor: Seth Dixon
Dominican Baseball History• Baseball was introduced to the Dominican republic in 1890 by Cuba, teams didn’t form until the 1900s• Since the 19th century major league teams in the U.S. draft players from outside the country• More than 45 countries had at least one player make it to the major leagues• Amateur baseball teams grew up in the sugarcane fields, at that time it dominated the countries economy
Economy in the Dominican• Still among the poorest countries in Latin America• Jobs are limited• Wages are low• Unemployment and underemployment are high• MLB teams look for players in the Dominican because they can get the players for low-costs
Dominican Players• In the 1990s New York Mets manager said “you can develop 30 to 45 players from the Dominican for what it costs to sign a second round draft pick in the united states”• http://mason.gmu.edu/~cmeyer/Meyer- MLB%26DR.pdf
How the U.S. develops players from the D.R.• Major league teams set up academies in the Dominican for players to develop there skills• Nearly every MLB team has an academy in the Dominican Republic• They started in the late 1970s• At the academy players are provided with food, healthcare and training
Major League Baseball AcademyOne of the many MLB academies in the Dominican Republic.These academies also provide an education for the players.The estimated cost of running the 28 academies was 14 million annually in2005.
Out look of the Chicago Cubs baseball academy in theDRhttp://www.dominicanbaseballguy.com/2012/02/chicago-cubs-to-build-training-academy.html
Economic growth from baseball• Baseball brought in 84 million• An estimated 17.5 million from signing bonuses• And 52.5 million reinvested into the country by the current major leaguers born in the D.R.• Even with the growth the unemployment rate is still high
Salaries for Dominican players in the MLB• Baseball salaries paid to Dominican born players that make it to the major leagues have been increasing at a growth rate of 14.3 percent per year from 1988 to 2007• As baseball salaries grow Dominicans earn a larger share• The players that make it to the major leagues are usually among the top paid players in the MLB• Signing bonuses for Dominicans are usually low to those earned by American prospects even the average bonus of $5,000 to $8,000 is higher than the average GDP per capita
Salaries• The salaries and bonuses paid to the players push money into poor Dominican neighborhoods making the economy better• MLB players earn more than double the amount of sugar exports earnings in this sugar dependent economy• 291.9 million (MLB salaries)• 132.6 million (sugar export earnings)• An estimate of signing bonuses paid to new prospects brought an additional 17.5 million into the country• In 1988 MLB had 31 Dominican born players on opening day with salaries totaling at $13.9 million by 2007 seven there was 94 players with salaries totaling at $291.9 million
Ozzie Virgil• New York Giants (1956)• First Dominican player to play in a game in the MLB• Had a $300 dollar signing bonus and never made over 18,000 in one season• Since Ozzie around $80 million has been contributed to the poor economy of the Dominican Republic• Also has helped produce 2,000 jobshttp://sports.espn.go.com/espn/hispanichistory/news/story?id=2598606
Felix RodriguezFelix is a Dominican born baseball player in the MLB nowIn 2005 he earned a salary of $3,150,000.00http://www.baseball-almanac.com/players/player.php?p1=rodrife0
Economy growth in the Dominican Republic• Growth rate of 9.5 in 2005• 10.7 percent in 2006• 8 percent in 2007• Due to the salaries of the Dominican MLB players and the cost of running the academies and the signing of promising players have made a decent contribution to the overall growth of the economy.
Growth of the Economy• Baseball doesn’t have the largest impact of the growth of the DR’s Economy• Tourism industry, communications industry, and the level of worker remittances from Dominicans living out of the country have a much greater impact on the economy• Tourism has been the leader of growth for the past 10 to 15 years
Population• Population of 9.2 million• The island is 18.7 thousand square miles• An average GDP per capita of $4120 puts DR below the median in economic terms among countries in Latin America
Derek Jeter (U.S. born major league player) Comparison of salaries by the top paid players In one year Jeter earned a salary of $22,600,000
How do DR MLB players help the economyPedro Martinez is a Dominican born current major league player. Pedromade well over $100 million in his career in the MLB. He helped totransform his hometown Manoguayabo, he had houses built for 30 to 40of his friends and neighbors. He also had a school and a church built andhelped pave the main road in the neighborhood. the window factory thathe owns helped create jobs for the neighborhood, he also employedpeople as body guards, chauffers, and public relations staff. Pedro hasplans to build a high school, police station, and a health clinic.In one year Martinez earned a salary of $17,500,000
DR players helping the economy• Pedro Martinez isn’t the only one contributing to the economy, Vladimir Guerrero also helped out his community by starting with building a seafood distributorship. He decided to build a concrete block factory, trucking business, a propane distributorship, and a hardware store. Vladimir also owns live stock, a vegetable farm, a supermarket, and two butcher shops as well as giving a $2,000 loans to the local businessmen.• That’s just two examples of Dominican born players helping out their home countries economy, there also players like David Ortiz, Many Ramirez, Sammy Sosa, etc..• The individual efforts by the DR born Major League players also has a big impact on the economy
Hurricane George (1998)• World: Americas Hurricane George in pictures: The Dominican Republic Hurricane victims wade through flood waters to inspect their destroyed homesImages from the scenes of devastation caused by Hurricane Georges, which ripped through the Caribbean and the southerncoast of the United States, claiming around 380 lives.http://news.bbc.co.uk/2/hi/americas/182859.stm• The MLB alone donated $500,000• Sammy Sosa (DR born MLB player) led efforts that brought $1 million for aid
Spendings by Dominican born MLB players in the DR• Table 3 Spending in the Dominican Republic by Key Individual Players Player Cumulative Salary 1982-84 constant $ House Additional Houses Productive Investments Charitable Foundations Charity Efforts Baseball Academies Other Sport Facilities• Astacio, Pedro $23,150,465 ranch• * Bell, George $11,302,298 various (b) • Beltre, Adrian $26,041,014 • * Colon, Bartolo $35,479,350 Farm • DeLeon, Jose $6,640,722• Franco, Julio $14,936,038• * Guerrero, Pedro $7,931,302 1 (c )• * Guerrero, Vladimir $42,839,990 various (d)• Guzman, Juan $20,025,717 1 (e) various (f)• Lima, Jose $14,072,377 • * Martinez, Pedro (g) $73,092,864 30-40 window factory various (h) Sports Center• * Martinez, Ramon (g) $22,714,030 30-40 window factory• * Mondesi, Raul $38,111,257 various (i) (j) Operates a little league• Offerman, Jose $18,745,512 • Pena Sr., Tony $9,223,582 2 livestock farms built a ballfield• Perez, Melido $10,624,880 1• * Pujols, Albert $23,408,390 various (k)• Ramirez, Aramis $19,600,397• * Ramirez, Manny $76,222,866 (l)• * Rijo, Jose $22,441,244 1 Operates a little league• * Sosa, Sammy $70,265,897 3 various (m) various (n) various (o)• * Tejada, Miguel $27,102,175 1 Baseball Stadium• *A Furcal, Rafael $17,456,105 1 Farm• *A Ortiz, David $16,269,810 2 Gas Station various (p)• These players appear in top 10% of Dominican players on MLB roles at least 3 times over the 20-year period• from 1988-2007.• Those indicated with * also appear in the top 25 highest paid players in MLB at least once over the 20-year period.• Those indicated with *A appear in the top 25 highest paid players in MLB in 2007, but do not satisfy the first condition.• http://mason.gmu.edu/~cmeyer/Meyer-MLB%26DR.pdf
ConclusionAlthough baseball doesn’t have the biggest impact on the economy growth inthe Dominican Republic it still made its contributions. Even with all of thecontributions from the MLB and all the other help with the economy growththe DR is still among the poorest countries in Latin America. Although thereamong the poorest the economy is making a positive growth.
Work Cited• http://mason.gmu.edu/~cmeyer/Meyer-MLB%26DR.pdf• http://news.bbc.co.uk/2/hi/americas/182859.stm• http://www.baseball-almanac.com/players/player.php?p1=rodrife0• http://sports.espn.go.com/espn/hispanichistory/news/story?id=2598606• http://www.dominicanbaseballguy.com/2012/02/chicago-cubs-to-build-training-academy.html