- Thread Author
- #1
Rebbiv
Senior Member
- Joined
- Aug 5, 2011
- Messages
- 6,305
I realize this is going to "shock" some people.
Top 10 Annual MLB Local TV Revenue
1. NYY - $385 Mil (thru 2033)
2. LAD - $334 Mil (thru 2039)
3. PHI - $200 Mil (thru 2041)
4. TEX - $155 Mil (thru 2035)
5. LAA - $147 Mil (thru 2030)
6. SEA - $141 Mil (thru 2032)
7. NYM - $119 Mil (thru 2031)
8. BOS - $114 Mil (thru ????)
9. CHC - $84 Mil (thru 2019)
10. TBR - $82 Mil (thru 2033)
**DET - $50 Mil (thru 2021)
Most MLB teams either own their networks or intend to own at the end of their current contract. The Yankees still have some percentage of the YES network, but they have sold off $2 Billion worth to Fox over the years. Still, at $385 Mil annually just from their local TV contract, they are not hurting. ***Average local TV contracts last 15-20 years***
At the end of 2019, the Cubs are expected to negotiate a new TV contract. If they acquire their own network, they could see it rise $80-100 Mil annually. The expectations is that they will be about $175-200 Mil annually.
With Disney buying local Fox Sports, now is the time for DET.
Also, most teams do NOT spend more than $40-45% in their "Real Revenue" on payroll. In 2017, DET spent 74.1% on payroll ($207.2 Mil), the worst in baseball by far. Their "Real Revenue" for the year was $279.7 Mil, compared to NYY's $534.9 Mil (almost double). Without a new TV contract, DET should not be having payroll anywhere near $130 Mil. Any difference between "Real Revenue" and payroll, is what they can put back into the team for "infrastructure". Minor league costs (facilities, staff, etc) and/or things like "analytics" at the MLB level. For years, DET "overspent" by $50-70 Mil per year, to try and compete. But that "crippled" their "infrastructure" and pushed back any timeline for a rebuild. FYI, the final numbers are not in, but 2018 "real revenue" for DET is not expected to top $250 Mil (40% of $250 Mil = $100 Mil) and they spent $135 Mil on payroll. Meaning, even in a "rebuild" year, they "overspent" by $35 Mil.
For teams making double what DET does on local TV contracts, a outlay of $6 Mil for an AAAA Starter is not a big issue. Spending on it for DET, means that $6 Mil cannot be used to bolster their poor infrastructure.
Top 10 Annual MLB Local TV Revenue
1. NYY - $385 Mil (thru 2033)
2. LAD - $334 Mil (thru 2039)
3. PHI - $200 Mil (thru 2041)
4. TEX - $155 Mil (thru 2035)
5. LAA - $147 Mil (thru 2030)
6. SEA - $141 Mil (thru 2032)
7. NYM - $119 Mil (thru 2031)
8. BOS - $114 Mil (thru ????)
9. CHC - $84 Mil (thru 2019)
10. TBR - $82 Mil (thru 2033)
**DET - $50 Mil (thru 2021)
Most MLB teams either own their networks or intend to own at the end of their current contract. The Yankees still have some percentage of the YES network, but they have sold off $2 Billion worth to Fox over the years. Still, at $385 Mil annually just from their local TV contract, they are not hurting. ***Average local TV contracts last 15-20 years***
At the end of 2019, the Cubs are expected to negotiate a new TV contract. If they acquire their own network, they could see it rise $80-100 Mil annually. The expectations is that they will be about $175-200 Mil annually.
With Disney buying local Fox Sports, now is the time for DET.
Also, most teams do NOT spend more than $40-45% in their "Real Revenue" on payroll. In 2017, DET spent 74.1% on payroll ($207.2 Mil), the worst in baseball by far. Their "Real Revenue" for the year was $279.7 Mil, compared to NYY's $534.9 Mil (almost double). Without a new TV contract, DET should not be having payroll anywhere near $130 Mil. Any difference between "Real Revenue" and payroll, is what they can put back into the team for "infrastructure". Minor league costs (facilities, staff, etc) and/or things like "analytics" at the MLB level. For years, DET "overspent" by $50-70 Mil per year, to try and compete. But that "crippled" their "infrastructure" and pushed back any timeline for a rebuild. FYI, the final numbers are not in, but 2018 "real revenue" for DET is not expected to top $250 Mil (40% of $250 Mil = $100 Mil) and they spent $135 Mil on payroll. Meaning, even in a "rebuild" year, they "overspent" by $35 Mil.
For teams making double what DET does on local TV contracts, a outlay of $6 Mil for an AAAA Starter is not a big issue. Spending on it for DET, means that $6 Mil cannot be used to bolster their poor infrastructure.