Question: How will MLB use the mega bucks from its new $12.4 billion TV deal?
Will it attempt to hold the line on ticket prices? I was going to use the phrase, “Keep the game accessible,” but I think that concept went out the window a long time ago. However, MLB needs to keep the prices somewhere in its current neighborhood, even though in some cases, that borders on outrageous.
Or will MLB, specifically the big spending teams, just funnel the new funds to high-priced free agents? With the increased money, is the day coming soon when $20-million per year seems quaint, much like $3 million per year does now?
Unfortunately, I think we all know the answer to that one. It just got even better to be an agent.
John Ourand of Street and Smith’s Sports Business Daily has the details of the new deal, which is expected to be announced this week.
Major League Baseball is poised to announce a stunning $12.4 billion worth of media deals this week as it completes negotiations on eight-year deals with Fox and Turner to go along with its earlier deal with ESPN.
The total take from its three partners more than doubles the amount from its previous deals.
Because the deals had not been formally announced, nobody from the league or networks was authorized to speak publicly last week, but sources confirmed that Fox has committed to pay MLB $525 million a year for a package that includes annually the World Series, the All-Star Game, one league championship series and two division series. As part of the deal, Fox will sell two division series games to MLB Network for $30 million each year. It also keeps the rights to the Saturday “Game of the Week.”
Turner, meanwhile, has committed to pay $325 million a year for a package that includes one league championship series, two division series and extensive digital rights. TBS will carry 13 regular-season Sunday afternoon games, down from 26 in the current deal.
Including the $700 million per year that ESPN will pay under terms of its new deal, MLB will more than double the media rights fees it had been getting to an eye-popping $1.55 billion per season.