Maury Brown is a sports business analyst and the founder of the Business of Sports Network, a series of expansive resources including: The Biz of Baseball, The Biz of Football, and The Biz of Hockey.

He was the creator of the original Business of Baseball.com, and is the former co-chair of SABR’s Business of Baseball committee. His first notable work in sports business was assisting in the Submission to Major League Baseball by the MLB to Portland effort during the Expos relocation derby. His main contribution involved the proposed Charter Seat License program.

He is a contributor to Baseball Prospectus and Basketball Prospectus, was formerly on the staff of The Hardball Times, and writes general commentary on sports via Maury Brown’s Biz of Sports.

Maury graciously agreed to be interviewed by Roster Magazine, and the resulting conversation covered topics related to the business of fantasy sports.

ROSTER MAGAZINE: Athletics are an ingrained part of American culture, but fantasy sports as we know them today are a relatively new phenomenon. The games continue to evolve, catering to the wants and needs of a larger number of fans. What is the economic impact of the fantasy game? Who’s playing, and how much is he spending?

MAURY BROWN: According to the Fantasy Sports Trade Association, 19.4 million people are now actively playing in the U.S. and Canada, with total revenues of $2 billion last year. That includes direct spending by consumer on fantasy sports leagues, contests, services, and other direct support profit centers. There are multipliers that create what is called the gross fantasy sport national product (GFSNP). The GFSNP includes advertisement revenue, sponsorship revenue, endorsement and license revenue, etc. Fantasy baseball players will contribute approximately 25-35 percent of the GFSNP this year playing fantasy baseball and other fantasy sport contests. Most that play fantasy sports play more than one, spending an average of $467.60 per year playing fantasy sports. One that plays fantasy baseball might easily play fantasy football, which is still king in the fantasy sports industry.

ROSTER: In the United States, Internet poker took a hit with the passing of the Unlawful Internet Gambling Enforcement Act of 2006 as the transfer of funds between financial institutions and gambling sites was restricted — but fantasy sports were exempted. Does it have to do with the power of the people, with such a large percentage of the population spending time on the product?

BROWN: I think that could be the case, but it is probably more complex than that. For the most part, I think there is still this feeling that fantasy sports is a benign form of “gambling.” The inability for those playing to funnel massive amounts of money into it (yes, I’m sure there are crazed exceptions out there) is part of the reason. Other forms of online “gambling,” if you want to call fantasy sports that, have the capacity to drain the wallet in very short order.

ROSTER: There have been a number of other legal issues involving fantasy sports, including battles related to distribution of in-game scoring information and licensing of player profiles and statistics. Have those court cases impacted the economics of the hobby?

BROWN: It has certainly impacted the sports leagues. While it is not dead, the legal battle between CDM Fantasy Sports and the MLBPA and MLBAM has gotten to the stage where the PA and BAM have now petitioned the Supreme Court to review the case. With CDM Fantasy winning all legal challenges to date, MLB has this last chance at overturning the prior lower court decisions. But, for that to happen, the Supreme Court will have to accept reviewing the case, first. Four of the nine judges need to vote in favor of hearing the review, and while civil cases are not often heard by the Supreme Court, with nearly every other professional sports league impacted by this case, they may indeed decide to allow the review.

ROSTER: Have the professional sports leagues taken a stance toward the fantasy game? It seems as if the more fans involved, the better—but what about the athletes and other team-related personnel?

BROWN: Well, they’re late to the party, but they all understand the value of it now. The CDM v. MLBPA/MLBAM case exemplifies that. Fantasy sports is a major cash cow now, and with that, leagues are looking to cash in on them. Look at the list of those that filed amicus briefs (supporting briefs in favor of the MLBPA and MLBAM case with CDM): NBA Properties, Inc.; WNBA Enterprises, LLC; NHL Enterprises, LP; NFL Ventures, LP; National Association of Stock Car Auto Racing, Inc. (NASCAR); and the PGA Tour. I think with that you can see that there is a considerable interest in how statistics are tied to a player name.

As for players getting involved, Yahoo! Sports has signed Phillies shortstop Jimmy Rollins as its fantasy baseball spokesperson, so players are certainly getting in on the fantasy sports craze.

ROSTER: Where do you see fantasy sports going forward? Is the boom sustainable?

BROWN: I think with the CDM ruling we’re going to see an increase in the fantasy sports products on the market, and more companies getting back in the game. With that, larger companies will come up with new avenues to attract players. So, in that sense, I would look for a slight increase. But, all bets are off depending on how the U.S. economy goes. If we’re hit with a substantial recession, then entertainment options such as fantasy sports could take a hit. For now, I don’t think that will be the case. I would expect the growth to continue in the near future, with a possible slowing of growth, not a decline.

Roster Magazine thanks Maury Brown for his time. He is a sports business analyst and the founder of the Business of Sports Network, a series of expansive resources that includes The Biz of Baseball.