MLB Plots a New TV Model After Striking Out With ESPN
The big sports network is walking away from the national pastime, accelerating baseball’s need to cope with the demise of the TV economy that fueled its growth for decades.
Jethreaux Summary: MLB commissioner, Manfred, is trying to completely change MLB revenue sharing. It currently works similar to how the Big 12 did in the early 2000’s where Texas got most of the money because they were the biggest. Each team can negotiate their own deals with regional broadcasts and they keep all that money, nationally televised games share revenue across the league. Manfred is trying to convince the teams to give up individual regional broadcast rights and allow MLB to control the entire thing and market it all in one large bundle. Each team would share revenue more like the SEC structure. The Yankees and Dodgers are not going for it at the moment. The Cubs and Red Sox don’t like it either. Brewers and Pirates love the idea. Manfred is trying to convince the big teams this would make the entire league healthier and therefore be better for them in the long run. The article mentions waning fan interest in small markets. A lot due to payroll differences and blackouts of local games. Blackouts are one of the issues Manfred wants to change with a new league wide tv deal.
ETA: the biggest push for this comes from ESPN saying your current product isn’t worth $550 million per year like we originally thought, we’ll give you $200 million
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