Baseball for the Thinking Fan

Login | Register | Feedback

btf_logo
You are here > Home > Baseball Newsstand > Baseball Primer Newsblog > Discussion
Baseball Primer Newsblog
— The Best News Links from the Baseball Newsstand

Thursday, January 24, 2013

Biz of Baseball: Dodgers Set to Announce $6-$7 Billion TV Deal on Thursday

Maury adds…:You wonder if they do Punk’d on Frank McCourt.

On Thursday, the Los Angeles Dodgers and Time Warner Cable will announce a new television contract that will have the team starting its own channel. While terms will not be officially released, it has been known for some time that the Los Angeles NL club would pull in $6 billion to $7 billion making it by far the most lucrative local broadcast deal that has ever been reached in baseball.

What makes the deal even more amazing is that TWC had already inked a $4 billion broadcast deal that sees the Los Angeles Lakers at the heart of the programming. All told, TWC will be committing between $10-$11 billion to two Southern California franchises.

For the Dodgers, the effects are already being felt. While the club saw a 2012 end of year payroll of $129,080,186, ranking them 8th out of the 30 clubs, they have already planned to go into “Yankee territory” for 2013. In interviewing Dodgers President Stan Kasten at the Winter Meetings he said that there was “a good chance” that they would break the Luxury Tax threshold adding, “We’re not done yet.”

What’s interesting is how revenue-sharing could possibly be capped, something that MLB was very concerned about when the Dodgers were looking at the deal prior. According to the LA Times, that issue opened the door for TWC:

The Dodgers’ current contract with Fox Sports expires after the 2013 season. The team had discussed a new deal with Fox last fall, worth at least $6 billion over 25 years. However, as MLB and the Dodgers debated how much of that money would have to be contributed to baseball’s revenue-sharing program, the Fox exclusive negotiating window expired, enabling Time Warner to initiate negotiations with the team.

Fox was believed to be willing to restructure its offer but was not believed to be willing to significantly raise the amount. The Time Warner Cable deal is believed to be worth between $6 billion and $7 billion.

Repoz Posted: January 24, 2013 at 12:22 AM | 8 comment(s) Login to Bookmark
  Tags: business, dodgers

Reader Comments and Retorts

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.

   1. Los Angeles El Hombre of Anaheim Posted: January 24, 2013 at 01:20 AM (#4353827)
Man, that's a lot of zeros.
   2. Belfry Bob Posted: January 24, 2013 at 02:30 AM (#4353833)
...and this is really a good deal for Time Warner? (Speaking as someone who hasn't watched an ad on a baseball game broadcast in 6-7 years...)
   3. Tripon Posted: January 24, 2013 at 02:48 AM (#4353837)
Time Warner wants market share. This is a surefire way to get market share.
   4. BeanoCook Posted: January 24, 2013 at 03:16 AM (#4353842)
MLB will pass the NFL in revenue in about 2-4 years. I wonder how this will be spun.
   5. franklloyd Posted: January 24, 2013 at 04:23 AM (#4353848)
Gee, it's about time MLB revenues exceed NFL revenues...they only play TEN TIMES as many games!
   6. BeanoCook Posted: January 25, 2013 at 06:58 AM (#4354702)
#5 answers the question. Baseball is a superior business model, that's not in doubt.
   7. RB in NYC (Now Semi-Retired from BBTF) Posted: January 25, 2013 at 10:47 AM (#4354771)
...and this is really a good deal for Time Warner? (Speaking as someone who hasn't watched an ad on a baseball game broadcast in 6-7 years...)
I think you represent an exception in that department. I almost never watch ads on non-live programming anymore, but I don't want to watch baseball or whatever on delay, so that ends up being viewed live--ads and all.
   8. puck Posted: January 25, 2013 at 11:18 AM (#4354789)
A few people I know DVR their NFL games. They start watching a bit late and fast fwd through ads and supposedly even some of the downtime between plays until they catch up some time in the 4th quarter. It's probably still a tiny majority, but I was surprised I knew even a few people who do that.

You must be Registered and Logged In to post comments.

 

 

<< Back to main

BBTF Partner

Support BBTF

donate

Thanks to
Infinite Joost (Voxter)
for his generous support.

Bookmarks

You must be logged in to view your Bookmarks.

Hot Topics

NewsblogTigers To Acquire David Price
(49 - 6:03pm, Jul 31)
Last: billyshears

NewsblogCardinals Acquire John Lackey
(88 - 6:03pm, Jul 31)
Last: cardsfanboy

NewsblogJULY 31 2014 OMNICHATTER/TRADE DEADLINE CHATTER
(324 - 6:03pm, Jul 31)
Last: Into the Void

NewsblogOTP - July 2014: Republicans Lose To Democrats For Sixth Straight Year In Congressional Baseball Game
(3940 - 6:02pm, Jul 31)
Last: The Id of SugarBear Blanks

NewsblogJim Bowden Caught Stealing From Fake Twitter Account, Deletes Everything
(15 - 5:59pm, Jul 31)
Last: asinwreck

NewsblogHardball Talk: Calcaterra: Nationals-Orioles TV Money Dispute about to Explode
(21 - 5:51pm, Jul 31)
Last: Yeaarrgghhhh

NewsblogA's Acquire Lester, Gomes For Cespedes
(125 - 5:47pm, Jul 31)
Last: RoyalsRetro (AG#1F)

NewsblogWhy the Mets Are Right to Save the New York State Pavilion
(14 - 5:43pm, Jul 31)
Last: Johnny Sycophant-Laden Fora

NewsblogPrimer Dugout (and link of the day) 7-31-2014
(18 - 5:41pm, Jul 31)
Last: Sweatpants

NewsblogAthletics, Twins Swap Tommy Milone, Sam Fuld
(19 - 5:29pm, Jul 31)
Last: andrewberg

NewsblogOT: The Soccer Thread July, 2014
(547 - 5:18pm, Jul 31)
Last: Crispix reaches boiling point with lackluster play

NewsblogOT: Monthly NBA Thread- July 2014
(1050 - 4:47pm, Jul 31)
Last: clowns to the left of me; STEAGLES to the right

NewsblogGeorge "The Animal" Steele Mangles A Baseball
(152 - 4:09pm, Jul 31)
Last: Gonfalon Bubble

NewsblogCameron: Why a July 31 trade deadline just doesn’t make sense anymore
(18 - 4:05pm, Jul 31)
Last: Barry`s_Lazy_Boy

NewsblogRed Sox trade rumors: 'Very good chance' John Lackey and Jon Lester are traded - Over the Monster
(90 - 3:36pm, Jul 31)
Last: Infinite Joost (Voxter)

Page rendered in 0.0984 seconds
52 querie(s) executed