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Over half a billion per year flowing into MLB, that not very profitable business!
MLB/Turner Sports deal: seven years at $535 million per year through. That's a 65% increase over what Turner had been paying. https://t.co/SJ4baWvEZ3
— John Ourand (@Ourand_SBJ) September 24, 2020
The Fox deal is allegedly $729 million a year staring in 2022, and the ESPN deal sits at $700 million with a renegotiation in progress. That is for the national rights, and let’s give a marginal increase for ESPN to make it a round 2 billion a year for the entire league (likely to be more than that). So that’s $66.7M per year per team.
The Cards’ local TV deal kicked in back in 2018 and escalates from around $50M to $86M by the time it expires in 2032. Let’s say that goes up 2M every year with 3M every third year. So in 2022 that would be $59M. Combined with the national TV money, that’s $125.7M a year for the Cards before a fan walks through the gate.
Is there something I’m missing here, or is Dewitt really barely scraping by?
I am afraid that DeWitt and the owners are going to use the virus to cry poverty. While they have no doubt lost revenue due to no ticket and concession sales there are other big sources of revenue they are still receiving. The key will be if fans are allowed back into the stadiums in 2021 or not. If fans are allowed back then the budget cuts are going to be harder to justify.
MLB Trade Rumors pretty much roast DeWitt and Rickets for their claims of poverty.
MLB, Turner Sports Reach Reported $3.7 Billion Media Rights Extension https://t.co/NMEvq0wmPd pic.twitter.com/8RBEL5ojTI
— MLB Trade Rumors (@mlbtraderumors) September 24, 2020
gscottar said:
If fans are allowed back then the budget cuts are going to be harder to justify.
The cuts are done now. We may not know about fans in the stands until well into 2021. By then, the cuts will be cold cuts – old news. In fact, if anything compromises full attendance, more cuts are probably ahead.
Focus will have moved on to arguing about the new CBA or something else. Besides, who are the owners accountable to, anyway?
I didn’t word that very well. What I really meant is that 2021 payroll cuts or lack of payroll additions would be more difficult to justify if fans are allowed back.
Gotcha. It will be interesting to see if teams actually declare intention to cut. I would think they will be very careful not to give the union ammunition. By spring training, it should be pretty clear, though even then, there very well could be unsigned free agents.
Brian
It’s been hinted at well before the first regular season ball was thrown that the owners are going to cry about the revenue and try and justify no fans in the stands in 2020 with The Rona as a reason to make some cutbacks. We don’t even know if stadiums will be even allowed to be half full by next year.
Seems to me this offseason is setting up to a collusion version of 2019 and will set up a dogfight of negotiations headed in the CBA expiring after the 2021 season. It’s going to be ugly and I have feeling we’ll end up with a shortened version of a season (if not cancelled) in 2022.
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