When the Guggenheim group purchased the Los Angeles Dodgers for a record $2.15 billion, many believed they overpaid for an underachieving, unattractive situation. With the help of a trade with the Boston Red Sox, a few signings of international players and a $215 million contract for a pitcher entering his prime, the Dodgers vaulted to the top of the NL West and baseball headlines.

Part of the transformation also included the Dodgers partnering with Time Warner Cable to launch their own network, SportsNet LA. By creating a network dedicated to themselves, the Dodgers will receive $8 billion over 25 years from Time Warner, which is a significant amount of additional revenue for the free-spending ownership group. However, according to Josh Kosman of the New York Post, the lucrative TV contract is going to cost the Dodgers when it comes to revenue sharing:

The team will have to fork over $1.9 billion in revenue-sharing payments to Major League Baseball over the 25-year term of its media rights deal with Time Warner Cable.

Kosman reports the Dodgers first annual payment, which is to be made in 2014 will be for $41 million and will increase annually:

The $1.9 billion in payments spelled out in the deal — $41 million in 2014; $48 million in 2015; and 4 percent annual increases after — will leave the owners about $710 million lighter.

Dodgers ownership has been relatively mum on the what concerns they have, if any, regarding the increase in their payout for revenue sharing. Even when considering the reported $1.9 billion they will need to pay over 25 years, partnering with Time Warner to launch SportsNet LA will still net them more profit than remaining with other cable networks such as, KCAL 9 or Fox Sports Prime Ticket.

______________________________________________________________________________

ICYMI: Here’s our Dodgers Nation Week In Review Video

About The Author

Matt is a journalist from Whittier, California. A Cal State Long Beach graduate, Matthew occasionally contributes to Lakers Nation, and previously served as the lead editor and digital strategist at Dodgers Nation, and the co-editor and lead writer at Reign of Troy, where he covered USC Football. You can follow Matt on Twitter @mmoreno1015

3 Responses

  1. Jim Isaacs

    I’ve just turned 63 Y/O and been a Dodger Fan since 1958 and just NEVER thought it would ever be any type of an issue to Watch or Listen to them…. It is TRULY a very SAD Thing that GREED on ALL Parts have taken away AMERICA’S PASTIME from us LOYAL FANS…..

    Reply
    • Matthew Moreno

      Jim, it is unfortunate that TV deals have this much of an impact on fans being able to watch their favorite team(s). However, the flip side of that is the team is able to bring in more money, which in turn could be put towards the roster, stadium upgrades, etc. It’s a catch-22.

      Reply
      • Brad

        What good is having a great team if the greedy bastards at Time Warner won’t let anyone watch them?

Leave a Reply

Your email address will not be published.