Huge TV Deal With FOX on the Horizon

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.

 

Dodgers owner Todd Boehly is handling the negotiations with FOX on behalf of the GBM. Photo: Kirby Lee/Image of Sport-US PRESSWIRE

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 Dodgers could easily recoup the $2.15 billion sale price they paid with a $6-7 billion tv deal. Photo: Kirby Lee/Image of Sport-US PRESSWIRE

 

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.

 

Topics: FOX, Los Angeles Dodgers

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  • http://www.facebook.com/profile.php?id=513416620 Sajju Shah

    I like your blog, and love reading your posts. But come on, as a writer you have be able to distinguish between “there” and “their”

    • http://twitter.com/LasordasLair LasordasLair

      Thanks for reading, and I assure you we do know the difference. I don’t see any typos in this post. But they are bound to happen from time to time. We’re only human right?

      • Sajju Shah

        true dat.

    • Stacie Wheeler

      Where do you see a mistake in the usage of their vs. there? I’d gladly correct the error, but I do not see any instance where I did that. Believe me, I know the distinction.

  • http://www.facebook.com/profile.php?id=100000569591718 Adrian Garcia

    First of all, I would rather keep Harang, he put up better numbers than Capuano. I do agree with your post however, Greinke is going to put up CY young award type winning numbers in LA. Chavez Ravine is the 5th most pitcher friendly friendly park in the majors. Somewhere that Harang and Capuano had sub 3.80 era’s. Who would want to face 1.Kershaw 2. Greinke 3. Beckett 4. Billingsley/Ryu (based on who performs better) in the postseason?

  • freetheamericans

    Don’t worry, it would be nearly impossible to move a guy with that contract and can’t hit left handed pitching, and disappears for months, in between hitting streaks

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