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

BBTF Partner

Support BBTF

donate

Thanks to
Jim Wisinski
for his generous support.

Bookmarks

You must be logged in to view your Bookmarks.

Hot Topics

NewsblogScioscia Reigns and Dipoto Resigns: What the Heck Is Going on With the Angels? «
(13 - 5:26pm, Jul 05)
Last: bobm

NewsblogOTP - July 2015: Winning the Political Game: Politics is More Like Baseball Than Football
(695 - 5:24pm, Jul 05)
Last: David Nieporent (now, with children)

NewsblogCharges pending in alleged St. Louis Cardinals computer intrusion of Houston Astros - CNNPolitics.com
(27 - 5:23pm, Jul 05)
Last: Harveys Wallbangers

NewsblogOT: Monthly NBA Thread - July 2015
(518 - 5:18pm, Jul 05)
Last: Rob_Wood

NewsblogOMNICHATTER 7-5-2015
(77 - 5:17pm, Jul 05)
Last: Beleaguered Mets Fan

Newsblog538: Baseball's Kids Are All Right
(3 - 5:04pm, Jul 05)
Last: cardsfanboy

NewsblogBREITBART SPORTS INTRODUCES VALUE ADD BASEBALL
(101 - 5:03pm, Jul 05)
Last: Joey B. is counting the days to Trea Turner

NewsblogHardball’s winners and losers at halfway point of MLB season | New York Post
(12 - 5:00pm, Jul 05)
Last: Cloude Atlas (Voxter)

NewsblogFrom a Front Row Seat, Scott Boras Notes Matt Harvey’s Struggles
(7 - 4:55pm, Jul 05)
Last: cardsfanboy

NewsblogOT: Soccer June 2015
(935 - 4:51pm, Jul 05)
Last: The John Wetland Memorial Death (CoB)

NewsblogRangers notes: Hamilton may go back on disabled list | The Star Telegram
(2 - 4:44pm, Jul 05)
Last: Los Angeles El Hombre de Anaheim

NewsblogBen Zobrist is the mystery hitter Mets would ‘overpay’ to get | New York Post
(17 - 4:24pm, Jul 05)
Last: Beleaguered Mets Fan

NewsblogCubs, Theo Epstein won't necessarily be buyers at trade deadline - Chicago Tribune
(17 - 3:54pm, Jul 05)
Last: What did Billy Ripken have against ElRoy Face?

NewsblogBrian McCann’s Three-Run Homer in 12th Helps Yankees Walk Off With a Victory - The New York Times
(6 - 1:51pm, Jul 05)
Last: Moeball

NewsblogNick Cafardo | Sunday Baseball Notes: Who should make the 2015 MLB All-Star teams?
(2 - 1:17pm, Jul 05)
Last: Jose Is The Most Absurd Thing on the Site

Page rendered in 0.1410 seconds
48 querie(s) executed