John Henry thinks Red Sox fans don't understand economics

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John Henry, regretting that the Red Sox are raising ticket prices again:

“I am concerned with how expensive it is for four people to attend a game these days . . . Unfortunately virtually all contracts in baseball go up each year for on-field and off-field members of the organization.”

As Baseball Prospectus’ Joe Sheehan so eloquently put it nearly eight years ago “The price of tickets is not set to recoup costs, but to maximize revenue.” Indeed, this is how the price of just about every item in the stream of commerce is set (the price of razor blades and printer ink is apparently set by the Russian mob, however). Supply and demand you know.

If you don’t believe it, ask yourself why it costs so much to go to a Notre Dame or Ohio State game. They don’t have any salary expenses to recoup. Or the NFL, NHL and NBA, where salary caps have kept overall costs basically constant and certainly predictable, yet ticket prices have spiraled in ways wholly unrelated to expenses.

A smart organization sets ticket prices at the absolutely highest level they can be set without negatively impacting demand. The Red Sox sold out their games at last year’s prices. They will likely sell out their games at 2010’s prices. Those prices will continue to be raised until the exact moment people decide they are not worth the price and cease to buy Red Sox tickets. John Henry’s suggestions to the contrary are exercises in public relations.

Last night was the highest rated World Series Game 1 since 2009

CLEVELAND, OH - OCTOBER 25:  Roberto Perez #55 of the Cleveland Indians hits a three-run home run during the eighth inning against the Chicago Cubs in Game One of the 2016 World Series at Progressive Field on October 25, 2016 in Cleveland, Ohio.  (Photo by Gregory Shamus/Getty Images)
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Major League Baseball and Fox won’t openly root for any specific team to make the World Series. But you can bet they’re pretty happy with the Cubs making it thanks to the ratings they’re delivering.

The Indians win over the Chicago in Game 1 last night drew a 12.6 overnight rating. That means, on average, 12.6 percent of the TVs in the largest 56 markets were tuned in to the game. That’s the best World Series first game rating since 2009 when the Phillies-Yankees game drew a 13.8 overnight rating. Last night’s rating was up 20% from last year’s 10.5 between the Royals-Mets and up 58% from the Giants-Royals in 2014.

Now the rooting, however quiet it may be, will continue: for the Cubs to make a series out of this so as to keep the magic numbers coming.

Twins hire Rangers assistant Thad Levine to be their new GM

BOSTON, MA - June 4: The Minnesota Twins logo is seen during the fifth inning of the game against the Boston Red Sox at Fenway Park on June 4, 2015 in Boston, Massachusetts. (Photo by Winslow Townson/Getty Images)
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Rangers assistant general manager Thad Levine has been hired as the Twins’ next General Manager. It has not been made official, but multiple outlets are reporting the hire. Levine will join Derek Falvey, who was named the Twins’ new president of baseball operations last month.

Levine has been the Rangers assistant GM since the 2005 season, working as GM Jon Daniels’ second in command. He’ll still be second in command in Minnesota, but with an elevated title as is the style of the day. He previously worked with the Rockies. He has, according to various reports, been conversant in statistical analysis as well as traditional scouting and player development. As is also the style of the day.