Financials

Klew1986 · 05-07-2013, 12:34 AM

So I just noticed as I was setting up my 2013 MLB game that under te financials that it has both national and local media contracts at 25 million average. Shouldn't the local media contract average be lower than the national average? What would be a good number to set as average local media contract? I was thinking 15-18 million. Otherwise teams will have crazy amounts of money.

majesty95 · 05-07-2013, 12:53 AM

Well, the MLB gets $1.5B per year from FOX, Turner and ESPN. That's $50M per year, per team. I would think most teams are under that but teams like the Rangers are getting $80M per year from their cable TV deal. The Yankees, conversely, got $85M last year from YES and that will balloon to $324M by the end of the deal in 2042.

I think you would be correct in most of the smaller market situation but the larger markets are quite the opposite.

nielsoncp · 05-07-2013, 12:53 AM

Actually, that's a pretty accurate assessment of what's going on in MLB right now. The reason we're seeing big contracts from teams like Texas, the two LA teams, etc. is because the contracts for local cable broadcasts is going through the roof. Jonah Keri wrote an article about this a few years ago that may be worth a look:

Jonah Keri on how the Rangers' TV deal made them into contenders - Grantland

Also, as a fan of a small market team, I as always weep for our future.

05-07-2013, 12:34 AM	#1
Klew1986 Hall Of Famer Join Date: Apr 2003 Posts: 2,727	Financials So I just noticed as I was setting up my 2013 MLB game that under te financials that it has both national and local media contracts at 25 million average. Shouldn't the local media contract average be lower than the national average? What would be a good number to set as average local media contract? I was thinking 15-18 million. Otherwise teams will have crazy amounts of money.

05-07-2013, 12:53 AM	#2
majesty95 All Star Starter Join Date: Apr 2005 Location: San Antonio, TX Posts: 1,790	Well, the MLB gets $1.5B per year from FOX, Turner and ESPN. That's $50M per year, per team. I would think most teams are under that but teams like the Rangers are getting $80M per year from their cable TV deal. The Yankees, conversely, got $85M last year from YES and that will balloon to $324M by the end of the deal in 2042. I think you would be correct in most of the smaller market situation but the larger markets are quite the opposite.

05-07-2013, 12:53 AM	#3
nielsoncp All Star Reserve Join Date: Dec 2012 Location: Milwaukee, WI Posts: 787	Actually, that's a pretty accurate assessment of what's going on in MLB right now. The reason we're seeing big contracts from teams like Texas, the two LA teams, etc. is because the contracts for local cable broadcasts is going through the roof. Jonah Keri wrote an article about this a few years ago that may be worth a look: Jonah Keri on how the Rangers' TV deal made them into contenders - Grantland Also, as a fan of a small market team, I as always weep for our future.