The Dodgers and FOX have reportedly been in negotiations regarding the retention of the Dodgers’ television rights, which according to sources familiar to Bill Shaikin of the Los Angeles Times, could result in a $6 billion contract.
According to Shaikin, if the two sides do not strike a deal by Friday, the Dodgers would have until the following Friday to present Fox with a final offer, according to the team’s current contract. Fox would then have 30 days to accept or reject the offer.
If the Dodgers and FOX do not strike a deal, the Dodgers would then be free to negotiate a television contract with other cable providers like Time Warner. Or they could start up their own team-owned channel. Wouldn’t that be fantastic? Tune into channel 22- Dodger TV! Or perhaps we can call it the Bison Broadcast Network…BBN.
With a deal this gigantic, the Dodgers’ financial situation would give them almost limitless power. Zack Greinke? No problem. The Dodgers could sign 10 Zack Greinkes.
The value of live sports events on television is climbing exponentially. In comparison, the Yankees’ television rights sits at $85 million for 2013, and the Los Angeles Lakers’ television rights fee is $120 million for this season. They are just beginning a 20-year contract with Time Warner. The Dodgers’ deal is for 25 years, which would be $240 million per year for $6 billion or $280 million per year at $7 billion. Currently, FOX pays the Dodgers $39 million for 2013 in the current deal.
Those numbers are stunning. It’s hard to wrap my head around the financial magnitude.
According to deadline.com, a deal came “very close” to being done about a week ago. FOX reportedly gave the GBM an ultimatum that the deal had to be done by the end of the month or they would walk. Todd Boehly, who is the president of Guggenheim Partners, is the representative from Guggenheim Baseball Management who is negotiating in their behalf. The GBM and FOX Sports have a 45-day exclusive negotiating window which began on October 15th and will end on November 30th.
The proposed deal, which seems to be close to being agreed upon, could be settled upon by the start of this coming week.
We will keep you posted on this developing story.