As the Far Middle enters 2025, this New Year’s episode examines the evolving economics of baseball, comparing the 1954 New York Giants with today’s San Francisco Giants.
Nick explains how baseball in the 1950s was a modest business, with the Giants needing about $2.5 million to break even. Gate admissions were the primary revenue source, and player salaries accounted for only 30% of expenses. Fast forward to today, and the Giants’ revenue exceeds $400 million, with TV rights alone surpassing $140 million. Player salaries now consume about half of the team’s revenues, often as guaranteed money.
The evolution of Major League Baseball, from small to big business, ties into the episode’s theme of what was, what is, and what’s ahead with the start of the new year. Nick looks at several winners and losers from 2024 and forecasts trends for 2025.
From today’s wildly high baseball salaries, Nick draws a parallel to the expansion of federal entitlement programs and the dire need to rein in government spending.
“As we enter 2025, it is governing time, at least for President Trump and Congress,” says Nick. “And although I doubt we will see any changes or reductions in benefit to current recipients, I’m betting that you will see action on attempts to arrest spending to current levels and then to grow the economy so the entitlements become a smaller portion of the total budget pie. It’s an absolute must if we want to avoid government default and economic calamity.”
Government regulation comes under scrutiny next, with Nick predicting potential setbacks for oppressive regulations in 2025—to the benefit of doers and value creators across America’s private sector. Nick cites The Harmonized Tariff Schedule, a monster 4,392-page document, as an example of complex regulatory excess that needs to be simplified.
The conversation then connects to constitutional issues, celebrating the Constitution’s resilience in 2024 and anticipating its continued rise in the coming years. Nick quotes Calvin Coolidge’s 1926 address marking the 150th anniversary of the Declaration of Independence to emphasize the Constitution’s enduring principles.
International events from 2024 are also highlighted, including Venezuela’s 2024 election and Nicolas Maduro’s refusal to acknowledge the results. Nick predicts challenges for authoritarian regimes in 2025, citing America’s renewed global leadership and energy independence.
The Russia-Ukraine conflict is also analyzed, with Nick providing historical context and suggesting that 2025 may present an opportunity for peace negotiations. Nick calls for a realistic approach to ending the conflict, even if it means compromising on territorial issues.
Finally, Nick calls out the credibility of the United Nations, specifically its Relief and Works Agency for Palestine Refugees in the Near East (UNRWA).
“We shouldn’t just stop funding the UNRWA, we should stop funding the UN until it can demonstrate material reform consistent with its original charter,” says Nick. “Last year proved to be a bad year for the United Nations. Let’s hope it takes that as a warning to improve its reputation and standing this year. But I’m not holding my breath.”
In closing, Nick discusses the differing accounts of the origin of the song “Blue Suede Shoes.” It’s one for the money, two for the show, three to get ready, now go, cat, go…off to a great 2025.