Go to end of page
Statements posted here are those of our readers and do not represent the BaseballThinkFactory. Names are provided by the poster and are not verified. We ask that posters follow our submission policy. Please report any inappropriate comments.
tripon, you better stay in touch. pretty soon the only way we'll be able to afford going to a game is my freebies.
I still can't wrap my head around the money being thrown around here. The simple AAV of the deal is about $375M if the rumored numbers are accurate. I don't want to do exact calculations, but let's say the US has 4% annual inflation over the life of the deal (high, but perhaps plausible). Then $1 now will be the equivalent of $2.19 in 20 years. We can get a ballpark estimate of the current-dollar value of the deal by finding a Year 1 value that, when inflation is computed, averages out with the Year 20 value to equal the AAV. It turns out that with the 4% inflation estimate, $240M in Year 1 will be the equivalent of $526M in Year 20, which averages out to $383M, close enough for our purposes. So Time Warner is conservatively paying the 2013 equivalent of about $235M-$240M annually, which is absolutely nuts. And a (probably) more accurate estimate of 3% inflation would make the 2013-equivalent AAV about $270M. How many people are going to watch the Dodgers on TV on even a semi-regular basis? Are non-TV outlets (like streaming) going to make a substantial difference? Even in a media market as big as LA, I just don't see how this kind of money makes sense
You must be Registered and Logged In to post comments.
Login to Join (1 members)
Page rendered in 0.2572 seconds, 58 querie(s) executed