The long and arduous auction sale of the Miami Marlins has apparently concluded and it appears as if New York Yankees icon Derek Jeter and billionaire money manager Bruce Sherman are now the proud owners of the financially troubled franchise. Along with Michael Jordan and thirteen other investors, the $1.2 billion purchase price has bought membership into an exclusive fraternity where Jeter will serve as the franchise’s Chief Executive Officer overseeing baseball and business operations. It is being reported that Jeter’s investment in the franchise is approximately $25 million. Sherman will serve as the franchise’s control person or in other words, the managing general partner. Even though annual losses nearly approach $70 million and the Marlins illicit disdain and ignominy for a litany of indiscretions, there is a genuine opportunity for prosperity if an effective organizational philosophy and business plan is established at genesis by Jeter and Sherman. The key to the Marlins’ future success is predicated on culture.
Obviously, Jeter and Sherman have a lot of work ahead of them if they are going to build the Marlins into a highly attractive and lucrative franchise with aspirations of cultivating a championship pedigree. Besides the rebuilding of a franchise that actually has legitimate potential on the field, Jeter and Sherman need to be pillars of trust and commitment to a disenchanted fan base who has grown accustomed to acrimony. The lack of interest in the Marlins is ever present in a community bursting at its seams in their profound disdain for Jeffrey Loria and David Samson.
Jeter’s brand name and immaculate reputation as a consummate winner will undoubtedly excite and entice South Florida residents to revisit the Marlins as an entertainment option. However, the five-time world champion is a novice when it comes to the business of professional sports ownership. Jeter will be embarking upon a crash course in sports ownership as well as on the job training in all circumstances. As a ball player, Jeter was known for his fiercely competitive spirit, meticulous preparation, and intense commitment to achieving greatness in the midst of adversity. It wouldn’t be inappropriate to believe these are transferable skills for Jeter and expect to see them on full display in Marlins Park beginning immediately.
Community trust in sports ownership is earned by actions and results rather than reputation or perception. Jeter will obviously be the face of the Marlins, but he cannot live in an ivory tower. He will need to actively mingle with the fans and have his finger on the pulse of what they are seeing and feeling regarding the franchise. Jeter will also have to engage with season ticket holders, suite lessees, sponsors, advertisers, media executives, politicians, and key members of the local business community since Major League Baseball’s business model is still predicated on local revenue generation. Jeter will have to be conversant in several topics. One moment he could be discussing digital ticketing with a fan sitting in Section 210 and the next reviewing Christian Yelich’s Defensive Runs Saved (DRS) with the baseball operations department. In truth, he needs to become the antithesis of Loria in every aspect and actively restore goodwill to a fan base and community desperately seeking enlightened leadership.
As Jeter and Sherman embark upon a journey that will undoubtedly have dizzying highs and catastrophic lows, a foundation for success is imperative if both men aspire to one day hoist a World Series trophy over their heads as proud owners of the Miami Marlins. In truth, Jeter and Sherman should use their first year of ownership solely as an opportunity to dive deeply into all internal aspects of the franchise. They need to identify the franchise’s strengths, weaknesses, opportunities, and threats as well as build a solid management team around a unified vision for greatness. Jeter and Sherman will need to surround themselves with seasoned baseball executives who intimately know the business and can help them navigate through the complicated maze of professional sports ownership. They need to have an open mind and listen intently to advice before making any decisions based on emotion or inexperience. Sometimes, a leader’s greatest attribute is the ability to listen and obtain information from those with more experience in particular matters.
The Marlins are by no means a trophy asset for the uber wealthy Sherman or the ultra-competitive Jeter. There is a strong determination and motivation to restore glory and prominence to a franchise that has already won two world championships (1997 and 2003) since its inaugural season in 1993. However, one cannot overlook the significant issues that plague the Marlins. Besides the horrific yearly attendance, annual high eight figure losses, staggering debt, and relentless public backlash, the Marlins lack an identity and culture.
Jeter and Sherman must come to terms with the fact that failures will occur with regularity at the outset until a new culture and philosophy is implemented within all aspects of the franchise. As long as the Marlins have a sound organizational philosophy accompanied by a thorough business plan which has undivided support, it is far easier to trust the process and weather the storms that come with losing and change. It doesn’t matter if you’re playing for the Batavia Muckdogs, Jupiter Hammerheads, or on the twenty-five man roster for the Marlins, everyone in the organization must wholeheartedly subscribe to the culture and philosophy. A clear and unified message that outlines a plan for future success at all levels of the organization will immediately quell the negativity. It is imperative for employees as well as the fans to become excited about these changes and relay a message of hope and optimism supported by a bona fide strategy for future success.
Jeter and Sherman need to spend quality time identifying the right people for positions within the organization both in the executive offices and on the field. This process cannot and will not happen overnight. It would be prudent for Jeter and Sherman to take as much time as they need to cull a management team that is experienced and possesses character traits they feel are essential for success in their business model. Jeter and Sherman also need to immediately distance themselves from the previous ownership group and its devious actions. Loria and Samson will be eternally vilified by an entire generation of Marlins’ fans even though a world championship had occurred under their leadership in 2003.
One of Jeter’s early leadership challenges will come in the form of Don Mattingly. The current Marlins manager and Jeter have deep ties due to their Yankee pedigree and pre-existing relationship. He will need to decide whether or not Mattingly is part of the solution or problem in Miami and how he fits into the organizational philosophy and culture going forward. Jeter must put all personal feelings aside and determine if Mattingly will be the manager of the Marlins for the foreseeable future.
Another issue Jeter and Sherman will encounter is Giancarlo Stanton’s thirteen year, $325 million contract which runs through 2027 with a $25 million club option ($10 million buyout) for the 2028 season. Besides the full no-trade protection clause, Stanton will make $32 million annually from ages 33 through 35 in years nine through eleven of the heavily back loaded contract. Stanton has an opt out clause at the conclusion of the 2020 season. If he does indeed decide to part ways with the Marlins, the franchise could save approximately $218 million. The financial burden of this contract is devastating to the current structure of the Marlins’ franchise since their twenty-five man Opening Day payroll has only eclipsed $100 million twice in the franchise’s history (2012 and 2017). Similar to Mattingly, Jeter must determine if Stanton is a key building block for the future or a disastrous financial albatross.
Derek Jeter and Bruce Sherman are about to embark upon a challenge that will prove to be both exhilarating and frustrating. Their overall success as owners of the Miami Marlins will be predicated on a well developed organizational philosophy and culture that is delivered with clarity and enthusiasm. Jeter’s brand name and reputation will win him many fans and admirers at the outset, but it’s all about results at the end of the day. The foundation for future success begins now and it is up to Jeter and Sherman to assemble the right people to deliver a winning culture to the long suffering baseball fans of South Florida.
Wayne G. McDonnell, Jr., B.B.A., M.B.A. is the Academic Chair and Clinical Professor of Sports Management, NYU School of Professional Studies (NYU-SPS) Tisch Institute for Sports Management, Media, and Business. He is a highly sought-after commentator and analyst on the game of baseball. McDonnell regularly appears on various television and radio programs; coaches athletes as a private hitting and pitching instructor; and shares timely insights via the Twitter handle @wmcdonn25.
