Posted on 04/08/2015 11:21:27 PM PDT by MinorityRepublican
More television cash in on the way. The Texas Rangers begin a $3 billion, 20-year cable deal this season (the team received a $100 million signing bonus in 2012). In 2016, the Philadelphia Phillies start a $5 billion, 25-year deal and the Arizona Diamondbacks begin a new cable deal that is reportedly worth $1.5 billion over 20 years. Meanwhile, the St. Louis Cardinals are in the midst of negotiating a richer cable deal.
Each of MLBs 30 teams went up in value by at least 20%. Why? Higher enterprise ratios are being fueled by the stock markets six-year bull run (which has inflated asset values and created a lot more potential buyers than sellers of teams), baseballs unmatched inventory of live, DVR-proof content, real estate development around stadiums, higher profitability (which reduces the need for capital calls) and the incredible success of Major League Baseball Advanced Media, the sports digital arm that is equally owned by the leagues 30 teams.
MLBAM most recently developed MLB.coms Statcast, which debuted at the 2014 All-Star Game. Statcast is a transformative tracking technology measuring every play that will revolutionize live broadcasts of Major League Baseball games to every screen from the computer to the television to the tablet to the smartphone. MLBAM also has a powerful video technology that supports partners such as HBO, ESPN and WWE, a business growing so fast there are reports of MLB spinning off a separate tech arm from MLBAM at a $5 billion valuation. In 2014, MLBAM generated an estimated $800 million in revenue and around $400 million in operating income. In total, MLBAM could be worth more than $10 billion.
(Excerpt) Read more at forbes.com ...
Im not sure how this an be possible as the interest in sports like snorzeville baseball as well as other sports that use a ball do not have much interest in the next generation of kids. I do not see how the audience of older and older people can generate the justification of those kind of media buy clout. There is not the affection for the game there was even 25 years ago. You dont see teenagers grabbing their balls and gloves for a “pick up” game, they jump on line and play there.
IMHO the most valuable teams are the ones with fans outside markets- St. Louis, Chicago Cubs, Braves, Dodgers. Add the Yanks but they already monetize the out of market fan base.
Factor in Spanish only channels...
Indeed, the reason why the NFL thrives right now is that the gigantic money the NFL earns from NBC, CBS, Fox, and ESPN rights fees is equally split among all the NFL teams.
They obviously haven't used the money to sign anybody who can actually play.
My favorite sports/money story has to be the Atlanta Braves worst to first 1991 season. After finishing last in 1990, they won the 1991 World Series. At that time they had the lowest paid club in MLB. The highest paid club in 1991 was the New York Yankees who didn’t even come close to any postseason play that year as they ended up near the bottom of their division.
As my Dad (RIP) used to snark: “nothing’s too good for the taxpayers”.
Unfortunately most of these stadium gravy deals only benefit the owners.
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