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

Wednesday, January 23, 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 23, 2013 at 11:22 PM | 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 de Anaheim Posted: January 24, 2013 at 12:20 AM (#4353827)
Man, that's a lot of zeros.
   2. Belfry Bob Posted: January 24, 2013 at 01:30 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 01:48 AM (#4353837)
Time Warner wants market share. This is a surefire way to get market share.
   4. BeanoCook Posted: January 24, 2013 at 02:16 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 03:23 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 05:58 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 09:47 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 10:18 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

News

All News | Prime News

Old-School Newsstand


BBTF Partner

Support BBTF

donate

Thanks to
Rough Carrigan
for his generous support.

Bookmarks

You must be logged in to view your Bookmarks.

Hot Topics

NewsblogOTP 20 Feb. 2017: Baseball in a Time of Politics
(683 - 4:09pm, Feb 21)
Last: Gone Fishing

NewsblogAstros hope Yuli Gurriel can bring stability to first base - Houston Chronicle
(19 - 4:09pm, Feb 21)
Last: snapper (history's 42nd greatest monster)

NewsblogDave Stieb on Hall of Fame: 'I surely did not deserve to be just wiped off the map' | MLB | Sporting News
(14 - 4:08pm, Feb 21)
Last: AROM

NewsblogIn a world without stats, who would be the best baseball player?
(49 - 4:06pm, Feb 21)
Last: Ithaca2323

NewsblogOT - December 2016 NBA thread
(2295 - 4:02pm, Feb 21)
Last: jmurph

NewsblogOT: January 2016 Soccer Thread
(221 - 4:01pm, Feb 21)
Last: Jose is El Absurd Pollo

NewsblogRick Ankiel drank vodka before starts to ease anxiety
(1 - 3:59pm, Feb 21)
Last: salvomania

NewsblogHow to Rationalize an Eric Hosmer Mega-Contract | FanGraphs Baseball
(2 - 3:49pm, Feb 21)
Last: RoyalsRetro (AG#1F)

NewsblogSammy Sosa compares himself to Jesus Christ, denies PED use
(12 - 3:43pm, Feb 21)
Last: Never Give an Inge (Dave)

Newsblog5 reasons Matt Wieters would make the Nationals the NL East favorites | FOX Sports
(12 - 3:41pm, Feb 21)
Last: Cargo Cultist

NewsblogMike Piazza Learns How to Be an Owner. Of a Soccer Team. In Italy.
(7 - 3:30pm, Feb 21)
Last: Gonfalon Bubble

NewsblogTen Bold Predictions for the Coming Season
(2 - 3:20pm, Feb 21)
Last: Dog on the sidewalk

NewsblogPrimer Dugout (and link of the day) 2-21-2017
(10 - 3:06pm, Feb 21)
Last: oscar madisox

NewsblogHelp wanted! These problem positions have plagued teams for a decade
(31 - 2:18pm, Feb 21)
Last: theboyqueen

NewsblogA slimmed-down Chris Heisey finds stability in West Palm Beach - The Washington Post
(3 - 2:09pm, Feb 21)
Last: Adam Starblind

Page rendered in 0.3226 seconds
47 querie(s) executed