2. 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
3. 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
4. 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
5. 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
6. Major League Baseball Academy
One 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 in
2005.
7. Out look of the Chicago Cubs baseball academy in the
DR
http://www.dominicanbaseballguy.com/2012/02/chicago-cubs-to-build-
training-academy.html
8. 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
9. 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
10. 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
12. 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 jobs
http://sports.espn.go.com/espn/hispanichistory/news/story?id=2598606
13. Felix Rodriguez
Felix is a Dominican born baseball player in the MLB now
In 2005 he earned a salary of $3,150,000.00
http://www.baseball-almanac.com/players/player.php?p1
=rodrife0
14. 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.
15. 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
16. 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
17. 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
18. How do DR MLB players help the economy
Pedro Martinez is a Dominican born current major league player. Pedro
made well over $100 million in his career in the MLB. He helped to
transform his hometown Manoguayabo, he had houses built for 30 to 40
of his friends and neighbors. He also had a school and a church built and
helped pave the main road in the neighborhood. the window factory that
he owns helped create jobs for the neighborhood, he also employed
people as body guards, chauffer's, and public relations staff. Pedro has
plans to build a high school, police station, and a health clinic.
In one year Martinez earned a salary of $17,500,000
19. 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
20. Hurricane George (1998)
• World: Americas
Hurricane George in pictures: The Dominican Republic
Hurricane victims wade through flood waters to inspect their destroyed homes
Images from the scenes of devastation caused by Hurricane Georges, which ripped through the Caribbean and the southern
coast 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
21. Spending's 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
22. Conclusion
Although baseball doesn’t have the biggest impact on the economy growth in
the Dominican Republic it still made its contributions. Even with all of the
contributions from the MLB and all the other help with the economy growth
the DR is still among the poorest countries in Latin America. Although there
among the poorest the economy is making a positive growth.
