Japan's new plan to beat deflation: more baseball
---Can more baseball save Japan -- or at least Abenomics?---
(Reuters) | May 20, 2014
A set of recommendations to lift growth in Japan's economy drafted by Prime Minister Shinzo Abe's party seen by Reuters calls for slashing corporate taxes, reforming public pensions, and -- in a curve ball -- increasing the number of professional baseball teams to 16 from 12.
"Prosperous baseball teams could strengthen attachment to regional cities and help local economies thrive," said the report...
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...But most professional teams survive in Japan because losses can be treated as tax-deductible marketing costs for corporate sponsors, such as such as Orix Corp and Yakult Honsha Co.
For that reason, one expert was skeptical of the economic punch from launching new franchises.
"Unless there are companies that are willing to sponsor the new teams, this could be difficult," said Munehiko Harada, professor at the faculty of sport sciences of Waseda University...
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