MLB forms economic group as regional TV in peril

[Yespage]

Yeah, we want to buy this company that in part does these services, but we don't want to do those services, so we are just going to stop. You can have the rights back, please don't sue.

 

[meStevo]

Sucks for you, but here only the people in Cobb County were on the hook for the Braves new stadium.

As for the Falcons stadium, the Atlanta Hotel/Motel tax takes care of it.

So unless I stay in a hotel in Atlanta or move to Cobb County, I won't pay a cent for either.

Vegas is the same way. People decry the biggest subsidy given for a stadium but we're in a unique position to be able to offer it. The same tax also goes to education, roads, etc. So yeah, Vegas locals otherwise don't pay for the stadium unless they book a room.

Would take a 2+ year COVID-style shutdown for negatively impact stadium funding with how it's setup. The tax is 'only' .88%, By comparison San Diego's rejected tax proposal that sealed the Chargers fate was for a 6% tax increase.

 

[AZ.]

Hopefully, this is fading away. I think most folks are realizing these stadiums are not going to put any money in THEIR pockets. Maybe just a hazy feeling, and suspicion where the “returns”, if any, are going.

Publicly paid stadiums to benefit high earning team owners etc must be getting to be a hard sell.

Phoenix had the Super Bowl this year, In one extended weekend it brought in 1 billion dollars to the area. Thats not counting the Cardinals playing 8 to 11 games, a final 4 in collage basketball, or the large concerts.

 

[Derwin0]

The payroll is the lowest in baseball.

The minimum salary in the Majors is $700,000/yr. The players aren't exactly suffering.

The owner pockets the majority of the profits and doesn’t put it back into improving the roster.

So? Business profits always go to the owners, whether it's baseball or some other business. If that money was going to the payroll then it wouldn't be "profit", and if the team didn't make a profit, it would eventually go bankrupt.

 

[Don in CT]

The minimum salary in the Majors is $700,000/yr. The players aren't exactly suffering.

So? Business profits always go to the owners, whether it's baseball or some other business. If that money was going to the payroll then it wouldn't be "profit", and if the team didn't make a profit, it would eventually go bankrupt.

Baseball teams make a profit when they have a product worth watching. Why are the Yankees one of highest valued franchises. Because they win. People want to watch.

 

[harshness]

Why are the Yankees one of highest valued franchises. Because they win.

The Yankees haven't won the championship in 13 years.

 

[Don in CT]

The Yankees haven't won the championship in 13 years.

What is their record in those years. How many playoff appearances.

 

[Joe The Dragon]

Baseball teams make a profit when they have a product worth watching. Why are the Yankees one of highest valued franchises. Because they win. People want to watch.

the cubs lost for years and still had fans all over the place on WGN

 

[harshness]

How many playoff appearances.

Not enough good ones.

 

[Don in CT]

the cubs lost for years and still had fans all over the place on WGN

What about other teams?

 

[SamCdbs]

The Yankees are mostly a high value franchise because they are in New York City, the largest media market in the country with over 7M "TV homes" with a substantial claim to several more not insignificant media markets (Buffalo, Albany, Rochester, etc.)

Which brings us back to the RSN discussion. The Yankees/Mets, like every other team, has an agreed upon home region. In this case, all of New York state, the northern half of New Jersey, Connecticut, and a small piece of northeastern Pennsylvania. There are a lot more people in that than in the home region of the Royals, or the Reds, or the Tigers, and so on. THAT is where we get the rubric of "small market-large market" from.

Because, unless you live in that region, you can love you some Yankees to death, it doesn't mean dime one to the Yankees. The national TV money from Fox, ESPN, and TBS and the out-of-market package money from mlb.tv, MLBEI, and ESPN+ is shared among the 30 teams equally. As is, more or less, all the merch money.

The only thing they don't share is the RSN money and the live gate. Now, yes, live gate is serious money, and there are a lot more potential customers the bigger the city is, but history teaches us that you can draw a big enough crowd in any major city. Which brings us to the RSN. THAT is the reason why teams like the Yankees can "afford" players that teams like the Pirates cannot.

Now, if the RSN is truly dying (we have yet to hear from NBC nor from the, mostly partially team owned RSNs that the big markets have, but the math is the same) then that money is going away. What seems most likely to replace it is something like mlb.tv with no so-called blackouts. Which will have to be something close to every team sharing the revenue equally.

Which means that MLB just got a lot more like the NFL, where all the media money is shared, and thus every team has an equal chance. That is the largest change in MLB business since the end of the Reserve Clause.

 

[Radioguy41]

Here's an update on MLB's involvement or potential involvement in Diamond's looming bankruptcy. $8.6B in debt, a missed interest payment in Feb and $1B in rights payments due shortly I'm not seeing how Diamond survives but time will tell. If Diamond misses that payment they will be in breach of contract potentially allowing MLB to yank back the broadcasting rights which essentially leaves Diamond with little media assets. There are going to be a lot of folks left holding the (empty) bag.

MLB sets up local media group, could broadcast 17 teams

 

[Bruce]

Here's an update on MLB's involvement or potential involvement in Diamond's looming bankruptcy. $8.6B in debt, a missed interest payment in Feb and $1B in rights payments due shortly I'm not seeing how Diamond survives but time will tell. If Diamond misses that payment they will be in breach of contract potentially allowing MLB to yank back the broadcasting rights which essentially leaves Diamond with little media assets. There are going to be a lot of folks left holding the (empty) bag.

MLB sets up local media group, could broadcast 17 teams

MLB has already said they are going to pull the rights once Sinclair is in breach of contract.

And again, what is Sinclair planning, there is no path forward without MLB.

What happens when another 15 Million Households are gone from Live TV within 2 years, not paying the per sub fee, will they go back to bankruptcy again?

This is a Chapter 7 no matter what they say right now.

 

[Bruce]

more news-

The MLB is still hoping to find a partner to broadcast its games on traditional TV services but is also preparing for the reality that it may not happen this year. So the MLB is creating plans to offer streaming only versions of in-market games, likely through its MLB.TV service.

The MLB has been clear that no matter what happens that it wants to offer in-market streaming. The question now is will they also have the option to offer games aired on a traditional service, as sources say several major companies have already said they are not interested.

MLB is Preparing to Stream Local Games in 17 Markets | Cord Cutters News

Recently we learned that AT&T SportsNETs will shutdown by the end of the month, and Bally Sports could be in bankruptcy any week now. This has left teams scrambling for options as their TV partners may soon vanish just before the start of the 2023 MLB season. Now the MLB has added three...

cordcuttersnews.com

It is reported that Bally Sports owes MLB teams bout $1 billion. A number that MLB commissioner Rob Manfred confirmed.

Bally Sports May Soon Shutdown According to Scripps | Cord Cutters News

For a few weeks now, we have been hearing about how regional sports networks (RSNs) are struggling. Bally Sports is about to declare bankruptcy, AT&T SportsNets failed to make full payment earlier this year and will soon be shutting down its AT&T RSNs. Now according to Scripps executive Brian...

cordcuttersnews.com

 

[AZ.]

The minimum salary in the Majors is $700,000/yr. The players aren't exactly suffering.

So? Business profits always go to the owners, whether it's baseball or some other business. If that money was going to the payroll then it wouldn't be "profit", and if the team didn't make a profit, it would eventually go bankrupt.

So how much are the owners making? Oh thats undisclosed? Is someone holding a gun to the owners heads to pay those salaries?????? lol

 

[Bruce]

More news on the AT&T Sportsnets and Comcast-

Comcast already being in three major markets affected by this outage, they seemed like the perfect partner. Now though Comcast has made it clear they are not interested in expanding their RSNs.

If Comcast does not want the content for channels they already have in the same markets is a big hint, that they want out of the RSN Business also.

This shows that my prediction of the majority of RSNs will be gone by the end of 2024, maybe areas like NYC can survive if they merge channels, like Yes with MSG.

Comcast is Not Interested in Taking Over AT&T SportsNets RSNs, it Tells MLB, NHL, & NBA | Cord Cutters News

Last week we learned that the Warner Bros. Discovery-owned AT&T SportsNets will shut down by the end of March 2023. MLB, NBA, and NHL teams have until the end of the month to take back their rights and find a new partner or stream online. Comcast already is in three of the affected markets and […]

cordcuttersnews.com

 

[Derwin0]

The only thing they don't share is the RSN money and the live gate. Now, yes, live gate is serious money, and there are a lot more potential customers the bigger the city is, but history teaches us that you can draw a big enough crowd in any major city. Which brings us to the RSN. THAT is the reason why teams like the Yankees can "afford" players that teams like the Pirates cannot.

Now, if the RSN is truly dying (we have yet to hear from NBC nor from the, mostly partially team owned RSNs that the big markets have, but the math is the same) then that money is going away. What seems most likely to replace it is something like mlb.tv with no so-called blackouts. Which will have to be something close to every team sharing the revenue equally.

Due to the lower tv money, teams have been exploring other revenue avenue streams.

The main reason the Braves left Atlanta was because the city wouldn't allow them to develop a fanflex around Turner Field. Cobb County on the other hand did, so the Braves moved and now we have the Battery at Truest Park.

 

[Derwin0]

So how much are the owners making? Oh thats undisclosed? Is someone holding a gun to the owners heads to pay those salaries?????? lol

Who cares? The owners are the ones taking risks and paying for things. Not every baseball team prints money, as only about half are actually profitable.

Major League Baseball Teams Struggling To Make Ends Meet | Tbones Baseball

tbonesbaseball.com

I'm not going to cry over people making a minimum of 700k/yr just because their bosses make more.

 

[AZ.]

Who cares? The owners are the ones taking risks and paying for things. Not every baseball team prints money.

I'm not going to cry over people making a minimum of 700k/yr just because their bosses make more.

Now thats funny...without the players those billionaires dont have a game! Hilarious!!!!.....

 

[Derwin0]

Now thats funny...without the players those billionaires dont have a game! Hilarious!!!!.....

And without those teams, those players don't have jobs.