|
|
Baseball Primer Newsblog— The Best News Links from the Baseball Newsstand
Saturday, February 11, 2023
Diamond Sports Group, a collection of 19 regional sports networks (RSNs) doing business as Bally Sports, is planning to file for bankruptcy next week, according to multiple people familiar with the plan. The group currently controls the local broadcast rights to more than 40 teams in the NBA, NHL and MLB, and its bankruptcy would be a significant blow to the cable network model that has lucratively buoyed U.S. sports for the past 50 years.
....
For the affected teams, including the Miami Heat, St. Louis Cardinals and Tampa Bay Lightning, the bankruptcy will trigger a number of questions. For instance, what happens with payment owed to the teams during the Chapter 11 process? More concerning, what do local sports media rights look like in the aftermath, and will leagues like the NBA or MLB get involved more directly?
|
Support BBTF
Thanks to TedBerg for his generous support.
You must be logged in to view your Bookmarks.
Hot Topics
Newsblog: Yankees get Juan Soto in blockbuster trade with Padres (60 - 2:49am, Dec 08)Last: rr: over-entitled starf@ck3rNewsblog: OT - NBA Redux Thread for the End of 2023 (155 - 2:34am, Dec 08)Last:  abergNewsblog: Jeimer Candelario, Reds reach 3-year, $45M deal, sources say (17 - 12:08am, Dec 08)Last: NaOHNewsblog: Shohei Ohtani's secretive free agency is a missed opportunity for him and MLB (34 - 11:36pm, Dec 07)Last: BooeyNewsblog: OT Soccer - World Cup Final/European Leagues Start (327 - 11:06pm, Dec 07)Last:  SoSH U at workNewsblog: Who is on the 2024 Baseball Hall of Fame ballot and what’s the induction process? (416 - 10:20pm, Dec 07)Last:  Tom NawrockiNewsblog: Carlyle’s Rubenstein Is in Talks to Acquire Baltimore Orioles (8 - 8:44pm, Dec 07)Last: sunday silence (again)Hall of Merit: 2024 Hall of Merit Ballot Discussion (191 - 7:43pm, Dec 07)Last:  Howie MenckelNewsblog: Guardians win Draft Lottery, securing next year's top pick (7 - 6:19pm, Dec 07)Last: ZachNewsblog: Eduardo Rodriguez signs with Diamondbacks: NL champs add to solid rotation on four-year, $80M deal, per report (3 - 6:15pm, Dec 07)Last: Walt DavisNewsblog: Reports: Astros, Victor Caratini agree to 2-year, $12M deal (7 - 5:23pm, Dec 07)Last: Tom and Shivs couples counselorNewsblog: Mookie Betts will be 'every-day second baseman' for Dodgers (38 - 4:14pm, Dec 07)Last: jacksone (AKA It's OK...)Newsblog: Red Sox trade Alex Verdugo to Yankees for three pitchers (29 - 4:14pm, Dec 07)Last: Walt DavisNewsblog: Jerry Reinsdorf meets with Nashville Mayor Freddie O'Connell (5 - 3:14pm, Dec 07)Last: Tom NawrockiHall of Merit: 2024 Hall of Merit Ballot Ballot (4 - 3:10pm, Dec 07)Last: Jaack
|
|
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. John Reynard Posted: February 12, 2023 at 12:16 AM (#6116580)You are thinking of the CBT which is not revenue sharing. A chunk of that does flow into a MLB, ahem, slush fund that indeed might be tapped to help any teams deeply affected by this. Lord only knows where this money has been going the last few years (the Dodgers have paid a ton) so I assume they've got a fair amount saved up and plenty more coming in from the Mets, Yanks, Dodgers, Padres, etc.
This impacts on revenue sharing not in how those funds are disbursed but in that, if local media rights aren't paid for a large number of teams, then thare is less revenue to share meaning that the A's, Pirates, Yanks, Cubs get less money. The specific teams affected will also be hit in that the half of their local revenue that they get to keep will obviously be substantially reduced.
"Common" revenue: this is the national TV contracts, most of the merchandising and licensing revenue, etc. minus the union's take. This is split equally among the teams.
"Shared" revenue: Every team pays slightly less than half of local revenue (possibly with some adjustement for stadium costs) into a pool. This pool is splite equally among the teams. Naturally the Dodgers pay more into this fund than they get out of it.
CBT revenue: Teams with high payrolls pay the "luxury tax" with about half going to the union and the rest into a MLB development fund (or some such). This revenue is NOT shared among teams. This system was never really designed to deal with $100s of millions and probably needs an overhaul.
Common and shared revenue adds up to about $220 M per team based on what I saw a couple of years ago so probably closer to $250 per team now. Let's call it $7 B. The affected TV contracts are mostly smaller ones, I'm not sure it's more than $1 B total, half of which would go into the shared revenue pool. Not that MLB has $500 M in this slush fund I don't think so if the revenue is completely missed this year, it's obviously a problem. And if it continues past a year ...
The bigger question is what are these rights worth? When Hicks went under, the Rangers were one of the valuable assets he could sell off. When the Trib went under, the Cubs were one of the valuable assets they could sell off. It's not clear to us nomrals how valuable the Sinclair/Bally network is right now. These rights will end up womewhere through some medium in the not too distant future but it seems the expectation is that they won't sell for nearly what Sinclair paid.
You must be Registered and Logged In to post comments.
<< Back to main