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

Monday, January 28, 2013

ESPN LA: Dodgers launching sports TV network

The Los Angeles Dodgers announced Monday their plans to launch a regional sports network funded almost entirely by Time Warner Cable, a scenario one baseball source says is exactly the type of deal MLB had feared: A team setting up a shell company of sorts in order to pay less in revenue sharing.

The new ownership group, which bought the team out of bankruptcy court in April 2012 for a record $2.1 billion, said it has created a company called American Media Productions that will start broadcasting Dodgers games in 2014 on a channel called SportsNet LA. Time Warner Cable, the largest carrier in the area, will be the network’s first distributor.

MLB’s revenue-sharing rules allow teams to start their own broadcast networks and to keep anything above and beyond the fair-market value of the TV rights (set at $84 million per year for the Dodgers plus a 4% boost per year during the bankruptcy court negotiations), provided that the team is assuming significant risk in starting the network. This deal is structured in a way that essentially places all of the risk on TWC, with the Dodgers themselves assuming almost none - so the question to be resolved is whether and to what extent the additional revenue from the contract (reportedly $7 billion over 25 years) must be shared.

Mike Emeigh Posted: January 28, 2013 at 12:34 PM | 3 comment(s) Login to Bookmark
  Tags: business, la 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. phredbird Posted: January 28, 2013 at 01:52 PM (#4356619)
huh, guess the guggenheim guys are going to test MLB on the revenue sharing part. they must think they've got some kind of solid case. but if the article is correct, and the dodgers are not assuming a large financial risk in setting up the network, they could be on the hook for more than the stipulated $84 mil a year bar that the bankruptcy court set.

btw, a lot of salary comes off their books after 2013. is there any chance they might fly under the luxury tax radar after 2013 or have they committed to too much?
   2. The Yankee Clapper Posted: January 28, 2013 at 05:39 PM (#4356915)
Trying to stiff MLB and the so-called "small market" owners of their rightful revenue sharing windfall? Shame!

Where is the outrage?
   3. phredbird Posted: January 28, 2013 at 06:44 PM (#4356951)
i take back what i said. looking on spotrac, dodgers payroll in 2014 is well over 190 mil -- they are still paying andruw jones 3 mil -- and that doesn't count clayton kershaw. he'll be arb eligible.

You must be Registered and Logged In to post comments.

 

 

<< Back to main

News

All News | Prime News

Old-School Newsstand


BBTF Partner

Dynasty League Baseball

Support BBTF

donate

Thanks to
JPWF13
for his generous support.

Bookmarks

You must be logged in to view your Bookmarks.

Hot Topics

NewsblogOTP 2018 June 18: How Life Imitates the Congressional Baseball Game
(206 - 9:16pm, Jun 18)
Last: Count

NewsblogIt's not a crime when OMNICHATTER does it! for June 18, 2018
(34 - 9:15pm, Jun 18)
Last: ERROR---Jolly Old St. Nick

NewsblogDeadspin: Former Blue Jay Kelly Gruber Disinvited From Canadian Baseball Hall Of Fame Festivities
(10 - 9:13pm, Jun 18)
Last: Walt Davis

NewsblogOT - 2018 NBA Summer Potpourri (finals, draft, free agency, Colangelo dragging)
(1189 - 9:11pm, Jun 18)
Last: this is normal 57i66135. move on, find a new slant

NewsblogGrumpy Gossage Napalms His Bridges:BWitz:NYT (reg req.)
(63 - 9:03pm, Jun 18)
Last: ERROR---Jolly Old St. Nick

Sox TherapyA Pleasant Trip So Far
(6 - 8:32pm, Jun 18)
Last: villageidiom

NewsblogJuan Soto Makes His Second MLB Debut Tonight
(15 - 7:58pm, Jun 18)
Last: John DiFool2

NewsblogOT: Soccer Thread (World Cup)
(519 - 7:53pm, Jun 18)
Last: J. Sosa

NewsblogSABR 48 – PITTSBURGH
(31 - 6:55pm, Jun 18)
Last: AndrewJ

NewsblogMetBblog: Mets reportedly ready to entertain trade offers for 'virtually everyone'
(23 - 5:28pm, Jun 18)
Last: Panik on the streets of London (Trout! Trout!)

Gonfalon CubsClicking
(47 - 4:57pm, Jun 18)
Last: Moses Taylor, aka Hambone Fakenameington

NewsblogPrimer Dugout (and link of the day) 6-18-2018
(22 - 4:45pm, Jun 18)
Last: snapper (history's 42nd greatest monster)

NewsblogOT - Catch-All Pop Culture Extravaganza (April - June 2018)
(3729 - 4:12pm, Jun 18)
Last: Hysterical & Useless

NewsblogTaking Back the Ballparks - Astros voting thread
(15 - 3:20pm, Jun 18)
Last: Panik on the streets of London (Trout! Trout!)

NewsblogDodgers' surprise ace makes All-Star case in win over Giants
(70 - 2:50pm, Jun 18)
Last: Dog on the sidewalk

Page rendered in 0.2326 seconds
46 querie(s) executed