real free credit reports pay advance personal loans in mckinney tx yearly free report experian credit scores my free credit report annually how to get a paid collection removed from your credit report can a collection agency pull your credit report without your authorization toll free number free annual credit report how can i remove inquiries from my credit report how to fix credit report after bankruptcy credit report website comparison time bankruptcy stays credit report 25 free credit report with no credit card required actors free credit report dot where to report credit card scams employee rights under fair credit reporting act how to cancel free credit report trial online texas free credit report annual actors free credit report ads freecreditscore fair credit reporting act annual credit report fedral 3 credit reporting bureaus equifax canada order credit report is free credit report canada safe payday permissible purpose defined section 604 fair credit reporting act fcra free credit report without trial membership annual credit report federal law definition consumer underneath fair credit reporting act pulling credit reports for landlords free copy credit report annual can get free credit report canada equifax credit report for a business can get free credit report once year what shows on your credit report after a bankruptcy get only transunion credit report obtain your credit reports annually free difference between credit report credit score report do lenders see your credit report fdic joint credit report pay off credit report collections news violations fair credit reporting act credit report purchased debt no credit report experian free annual credit reporting free credit report annual gov equifax canada credit report request form credit report repair service bank of america cash advance fees annual free credit report federal authorized remove incorrect address my credit report magnum cash advance loans cbc companies credit reporting file police report credit card stolen which credit report company to use civil claim judgment my credit report can i pull a credit report on someone national credit fixers reviews how long does a late credit card payment stay on your credit report pay ?ă2 for credit report all 3 free credit report score get free report all agencies credit scores how to get rid of charge offs on my credit report check all 3 credit scores reports how do i add an employer to my credit report best site to get your credit score free credit report for employment sample credit report now free how to run a credit report nj fair credit reporting act government once a year credit report check my credit report free uk order free credit report from experian how to get your credit report mailed to you best credit repair shipping companies australia dispute information credit report transunion long do collections accounts stay your credit report free credit report how to obtain can checking your credit report hurt your score free 3-1 credit report legal name change credit report what does transferred to recovery mean on a credit report cleaning up your credit report for free credit report management credit report authorization form template mini credit report com phone number remove capital one charge off credit report 3 1 credit report credit score how long to clear credit report after paying collection agency cbc innovis credit report contesting credit report information equifax free credit report annual check check my credit rating online free credit reports from 3 agencies block credit report inquiries what is a 1b score credit report are all credit reports the same california gov free credit report credit in general and what type of information is in your credit report fix too many inquiries credit report vat credit on computer repair and maintenance medical collections credit report 2011 how do i pull a business credit report remove collections credit report canada how long does judgement stay on credit report in texas why did the free credit report band leave how do i obtain a free credit report and score initial alert on credit report federal free credit report website federal govt free credit report car insurance companies that don;t use credit reports how do i get my credit report and score for free analysis violations fair credit reporting act how to get a free credit report without mastercard information remove paid collection my credit report how can i clean up my credit report free credit repair pros houston tx personal reports canada free credit what to pay off first on your credit report number cancel experian credit report free credit report commercial lyrics pirate free credit report gov business cash advance how long does it take capital one to report to credit bureaus access previous experian credit report merge credit report transunion once a one time a year free credit report credit card fraud report how dog you get your free credit report from equifax best cash back credit cards consumer reports 2011 obtaining a free credit report in canada allstate insurance company credit ratings names guys free credit report commercial violette how do i get a free credit report once a year sample letter to remove judgement from credit report free annual credit report government federal trade free mail credit report how to read a canadian credit bureau report see my credit report online free federal trade commission how to dispute credit report errors september 2008 fair us credit report online get free credit report and credit score cashland payday loans michigan remove collections from credit report build your credit report free 3 in 1 credit report and score how do i get my free credit report online how to remove a ccj from your credit report get all 3 credit scores reports free only free report monitoring credit scores 3 free credit report agencies free annual 5 credit bureau reports annual free credit report government website how do me obtain a free copy of your credit report how dog i report a delinquent account to a credit reporting agency free tri score credit report free annual credit report clark howard background and credit check for landlords when does discover card report to the credit bureau credit reports free annual requesting free credit report transunion fair credit reporting act form disclosure how to fix my credit report fast view all 3 credit reports disputing a charge off on credit report does authorized user credit card show up credit report does car insurance go on your credit report christian credit repair help free credit report canada no credit card loans online what does charged off mean on your credit report free credit report after denied credit transunion fcra entitled to free credit report every year equifax promotion code credit report free 3 credit reports and score how do you get a credit report if you have no credit dispute items on credit report online credit car body repair how to guide one time credit report what is the best way to improve credit score free credit report without giving mastercard information government agency oversees credit reporting agencies obtain my annual free credit reports order my 3 free credit reports what is the purpose of the fair credit reporting act www gov free credit reports dispute information credit report online placing alerts on credit reports rapid credit reports reviews free 3 bureau credit report no credit card rent are credit report sites safe check my credit family history online free free credit report scores 3 bureaus credit report transunion contact request for your transunion personal credit report free credit report trial 30 days free credit report theme song download return of the free credit report band consumer report best credit score how to remove old charge offs from credit report what is included in your credit report equifax information court judgement credit report remove the only real free credit report mandated good credit report important credit report government site government sponsored free credit report does checking your own credit report lower your score how fast can i improve my credit score uk request credit report mail form ftc free credit report parody view all 3 credit reports and scores free visa report if denied credit transunion does checking my credit report affect my score wrong information on credit report canada top credit reporting services government free credit score and report other guys free credit report com commercial news articles about credit reports get your three credit reports free top 100 credit report sites credit score reporting period how to get a free copy of your credit report free credit reports credit scores why do you need a credit report new free credit report lyrics roller coaster free report commercial club personal solutions credit reports how might you correct an error on your credit report consumer reports on credit card processing companies charleston poor credit history bankruptcy and renting free credit report gov uk request how do i request a credit report by mail how do i get my yearly free credit reports credit risk reporting tools correct false information credit report purchase a credit report online request credit report under fair credit reporting act fcra toyota credit canada annual report medicare credit balance report - provider instructions form cms-838 credit card settlement effect on credit report why can;t i view my equifax credit report online 3 credit scores and reports fico 123 credit report how long does a chapter 13 stay on my credit report clark howard annual credit report toll free numbers credit reporting agencies transunion credit report login review experian credit report again how long will collections stay on credit report american express credit report dispute credit report gov annual xds get free credit report online free credit report uk without ecard details vermont credit reporting law free credit report no credit card info tools annual free credit report federal fcra credit cards report all credit bureaus how to get your credit reports and scores get a credit report free experian how do i get a credit credit report for my child kd credit report guide find your business credit report how to remove paid negative items from credit report credit report sites legit small business credit reports freeware should order my credit report best place to get credit report in canada how do i dispute a bankruptcy on my credit report should i dispute items on credit report best credit report agency use 30 free credit report with no credit card required unfreeze credit report without pin company online credit check report free credit score report canada fair credit reporting act of 1970 form credit report errors statistics experian credit report ?ă2 rental credit report free annual credit reporting service free yearly credit report 2010 how do companies report to credit bureaus bad credit loans no guarantor no broker how to check credit credit score bank of america credit card how do i cancel my subscription to free credit report what is a charge off on credit reports free three in one credit report equifax us debt canadian credit report what is cash advance google charges on my credit card buy credit reports and scores explanation of credit report inquiries letter does my checking account show up on my report credit score 3 credit report repair my credit reports annual free credit report with scores request fico credit report free which credit report is used when buying a car transunion credit report free credit report dunn and bradstreet credit report free free report uk experian credit rating landlord do get credit report do credit report renter free credit report from the government yearly charge off on credit report free credit report after being denied credit denial government mandated free annual credit report scores where is the best place to get a free credit report get all three credit reports with score free credit reports from transunion equifax and experian get credit card report free how to find collection agency on your credit report real free credit reports no credit card ncua credit union reports many points inquiry credit report credit reporting act alberta free credit report.com cancel phone number online australian credit report federal annual free report program credit union dispute medical collection credit report does checking tour own credit report lower your score cma 2010 cma global sovereign credit risk report can my employer run my credit report define report public credit no credit card free credit report what kind of information is on your credit report what information is on my credit report what are charged off accounts on credit report new free credit report commercial 2010 band free annual credit report from federal government what happened to the free credit report guys federal annual free credit report program get can really get free credit report request annual credit report by mail sallie mae credit reporting rules order transunion credit report denied credit credit information report + rbi dispute item transunion credit report do you need credit report free uk credit report without credit card where to get credit report remove negative items from credit report after bankruptcy sample 3 bureau credit report can;t get transunion credit report how do i request my free credit report build up your credit report kern schools federal credit union credit report truly free credit report canada annual credit report and fico score what does a statutory credit report contain sample letters requesting credit reports experian credit report reviews how to get something removed from my credit report reporting identity theft to the credit bureaus 3 credit report and scores copy of my experian credit report free credit report gov fico score how long will negative information stay on my credit report get credit report fico score much does cost get credit report tenant how to remove credit report freeze prepaid card reporting credit bureau letter dispute judgment credit report credit report reviews consumer reports who won the free credit report band contest us credit reporting agencies free credit report without trial obtain free credit report illinois get credit report online india letter to dispute charge on credit report ordering credit report someone else are there any real free credit report sites fair credit reporting act disclosure and authorization official place get free credit report what to do if you have a dispute on your credit report bank america credit report service bad credit mortgage loan comparison calculator 24 hour credit repair request your free annual credit report canada does mean if you have charge off your credit report credit report judgment annual report federal law credit card get all 3 credit reports and scores freeware purchase credit reports i need a cash advance right now can i get a free credit report for my business your access free credit reports ftc where to report identity theft to credit bureau get rid kd credit report the best credit report monitoring credit report no credit card online long does judgement stay your credit report texas gov credit report score how many times can i dispute something on my credit report see all 3 credit reports free how to get your experian credit report how can i get a loan with bad credit and no guarantor get copy my credit report score personal information is wrong on credit report credit report all 2 agencies annual credit report three agencies free credit report and credit score from government credit reporting agency scores highest getting a credit report in canada get free credit report mail credit reporting bureau credit scores and credit reports evan hendricks can red view your credit report free free florida credit report cancel mni credit report how to read credit report canada equifax questions about credit reports all 3 credit scores and reports company bond credit ratings moody's order copy of credit report what personal info is what does charged off mean on a credit report how to report payments to a credit bureau top credit report repair services remove paid items off credit report how to fix negative information on credit report need help reading my credit report credit report site really free landlord pull tenant credit report does free credit report affect your credit score charge off on credit report how to fix obtain all 3 credit scores reports how to correct inaccurate information on credit report free credit report commercial invoice the club review credit report companies when do credit card companies report late payments to credit bureaus stop collection agency reporting credit where can i get my annual credit report for free suze orman improving credit scores fico transunion credit scores ranges how to get your free credit reports credit reporting company review how to get a credit how do i get a credit report on a tenant credit repair divorce laws in idaho how to report a tenant to the credit bureau where do you go to get your free credit report what info is included in a credit report equifax 3 in 1 credit report clear your credit report free how to order my free credit report pull credit report free free credit report from all three major credit bureaus get credit report after being denied loan where to get your one free credit report per year payday loan not my credit report triple credit report free website can you get your free credit report credit bureau report of singapore how can i dispute my credit report online fcc annual credit report credit report example first advantage credit report reporting bad credit agencies fico score crdt first credit report does american express report to credit bureaus online money loans where can i borrow money without a credit check regular inquiries in credit report how to run a credit report on yourself should report credit card theft police consumer report under fair credit reporting act agency totally free credit report no credit card required uk transunion credit free report credit report for rental agreement free credit report service reviews what is a closed account on your credit report how do u get a copy of your free credit report south africa bureau report free credit score how to get free credit report from transunion canada how to put a freeze on your credit report first credit report.com commercial free credit score check uk free credit score no credit card needed cma global sovereign credit risk report 2009 free credit report without monthly fees free copy of credit report credit report gov site red24 hsbc advance credit report how to report error on credit report get free credit report new jersey free credit report and score without credit card required credit report for job offer access your free credit report how to obtain credit report for business purposes serious delinquency with others credit report whats a good credit score 2013 legit free credit report websites credit history canada usa free credit report with fico scores for all three credit bureaus repairing credit report after bankruptcy there free credit report without debit card information how to fix an error on my credit report free yearly credit reports credit report active duty alert what is the official site for the free annual credit report does lawsuit show up credit report website do go free credit report free credit report equifax ca check clear eviction credit report credit reporting agency does mortgage companies use how to compare credit card processing companies credit bureau reports singapore check common credit report questions how to get your credit history report possible remove judgement credit report how how do i know if i put a security freeze on my credit reports
Home Maury Brown Understanding the Real Value of MLBAM and MLB Network

Like Shoot to Thrill - An AC/DC Tribute on Facebook!

An authentic tribute of AC/DC that covers the best of the Bon Scott era and the best of Brian Johnson's material

Who's Online?

We have 607 guests online

Atom RSS

Understanding the Real Value of MLBAM and MLB Network PDF Print E-mail
User Rating: / 85
PoorBest 
Written by Maury Brown   
Monday, 19 January 2009 00:00

MLB Network and MLB.com

MLBN and MLB.com create revenues
for each of the 30 owners in MLB. But,
don't think that free agent signing
money comes directly through the two.

On New Year’s Day, approximately 50 million households witnessed the largest cable channel launch to date in the MLB Network, and with it, a new spigot of revenues for the league was born. And, much like MLB Advanced Media, which was hatched in 2000, MLBN has the capacity to be a cash cow for the owners in baseball.

For fans of the A’s, or Pirates, or Royals, the question becomes, does the revenues from these media holdings eventually translate into better players on the field? Does MLB.com and MLB Network directly tie to my team spending more in free agency? As we shall see, the answer should be yes, but indirectly.

Both MLBN and MLBAM are centralized, meaning the owners all invest in it collectively and reap any rewards collectively. MLB.com, through MLBAM, was funded by the clubs in an agreement that had them each investing $1 million a year over four years. The cost was targeted at $120 million. It became exceptionally popular very quickly, generating excess revenue in only the second year of its existence, allowing them to invest only $70-$75 million before beginning to see a return on the new digital-rights wing of the league. Now, MLBAM is reportedly pulling in approx. $450 million annually, a tidy sum for the league and its owners.

With MLB Network, there are expectations that it too will become a key revenue maker in short order. The league owns the majority of MLBN, with DirecTV and cable consortium iNDemand as minority owners. Start-up costs have reported to be in the mid-eight figures, and hopes are that MLBN will become a profitable venture in just over a year. By 2015, six-years after the channel will have been launched; projections are for revenues from subscriber and advertisement fees to reach $210 million annually. The new league channel could see additional revenues in rights fees through international distribution agreements. There is already talk of a deal where Rogers Cable would carry a repacked version of MLB Network as Baseball TV in Canada.

Factoring in MLBAM, when tied to MLBN’s revenues, by 2015 the league could see between $800-$900 million annually, an exceptionally lucrative source of revenue.

Most Revenues Do Not Head Directly to Owners

While MLBAM and MLBN translate into key revenues, it does not mean that they all pour into the owners’ pockets directly. There are, of course, bills to pay and the future to consider. Whether it is the addition of Pitch F.X. for MLB.com, or the possibility of delving into 3-D broadcasts in the future on MLBN, reinvesting in these league owned assets needs to occur to allow it to grow. MLBAM is just now starting to pay dividends to each of the owners. Over the past two years, each has reportedly received $3 million through BAM, or about the cost of the two-year deal recently brokered for Phillies pinch-hitter Joe Dobbs, with some pocket-change left over. So, directly, the revenues from BAM and MLBN don't translate into some vast stream of greenbacks with which to go free agent shopping. The real value of the two comes indirectly.

Select Read More to see the rest of this article

Both of these assets are used for matters such as league-based credit. For example, Fitch Ratings, which sets the bar for the creditworthiness of businesses around the world, recently affirmed an 'A' rating for MLB based in part on the league’s economic structure.

It is not widely reported, but the majority of the clubs in MLB borrow money against a league fund – its credit facility called the Major League Baseball Trust. Last month, the league was able to refinance most, but not all of the credit facility, which translated into $30 million in principle payments to lenders as the portion that was not refinanced turned to debt. That turned into a bill that averaged $1.5 million for 20 of the clubs this off-season, according to the SportsBusiness Journal. While one might say that the league’s economics don’t appear to be some advantage when clubs are paying $1.5 million in debt before the season starts, consider that the NFL –the most popular league in the U.S. – was unable to refinance even a portion of their credit facility this past year.

The other way to view MLBAM and MLBN is what they are worth in net value, which in turn trickles down to increase franchise value. If projections remain true, MLBN would have a net value of over $1 billion by 2015. As for MLBAM, in 2005, MLB engaged in the possibility of an initial public offer for the digital rights asset. Bank of America, Goldman Sachs, First Boston and J.P. Morgan tried in vain to get the owners to go forward with the initial public offering (IPO). After all, they had good reason to want to see it happen, as these analysts predicted the value of the IPO at the time to be $2-2.5 billion, or approx $2.7 billion in 2008 based on inflation.

So, let’s say that MLB befalls some incredible headwinds. Let’s say that in 2-3 years the country is still in the throes of a recession. The league could then offer up MLBAM and/or MLBN as an IPO and reap the benefits – the two act as a security blanket for MLB.

Could MLBN Have a Negative Influence on MLB’s Bottom Line?

While we have been talking of MLBAM and MLBN together, they are very different. MLB.com is not competing with other league revenues while MLB Network will.

In 2007, MLB negotiated national broadcast deals with both Fox and TBS. Those deals, which run through 2013, will see Fox pay baseball approximately $257 million annually, while Turner will chip in $104 million per year.

ESPN's deal was brokered in 2005. All told, MLB will receive nearly $660 million from their national broadcast partners in '09.

MLBN plans on broadcasting 26 regular season games this year, but there is already talk that they are interested in broadcasting playoff games in the future.

When the time arrives for these partnerships to be renewed, MLB Network will be a new variable in the discussions – the 800lbs gorilla in the room. It is, after all, now competing with these three partners on different levels. It is ESPN that may feel MLB Network’s presence the most. With the creation of MLB Tonight, ESPN’s Baseball Tonight will face stiff competition. Instead of fans now waiting until the late evening to watch Baseball Tonight, starting at 2pm ET, MLB Network will air throughout the day until the last west coast game is completed. One could argue that Baseball Tonight’s relevancy will be greatly diminished due to MLB Tonight.

If you aren’t sure that ESPN isn’t concerned about MLBN, take a look at their content. There has been no mention of MLBN’s launch, nor has there been a single link to stories on the fledgling network. It’s not by chance.

As for MLB’s other broadcast partners, Fox Sports President Ed Goren and Turner Sports President David Levy were at the MLB owners meetings this past week where they are "aiming for some structural changes within their baseball coverage, which has been beset with struggling ratings and annual complaints over the start times of postseason contests," according to Eric Fisher in Monday’s edition of the SportsBusiness Journal. While MLB Network is not part of the discussion, it does add yet one more factor when these national broadcast deals where postseason games are in play when they come up for renegotiation. As MLB Network CEO Tony Petitti said in our interview with him, “[MLB Network will] sit there like any other bidder hoping we can come up with some more.”

Does MLBAM and MLBN Help Clubs More Readily Reach Deals?

The amount in those dividend checks from MLBAM, and eventually MLBN, coming to each of the 30 owners should continue to grow, but as outlined, the amount isn’t so significant as to influence how low-revenue making clubs chase top-tier free agents. The two media based ventures do, however, bolster the league’s bottom line, which then trickles down. If continued labor peace surrounds MLB, then overall franchise valuations for each of the clubs will continue to grow, in large thanks to the investments in MLB Advanced Media and MLB Network. That, along with revenue-sharing, should incentivize clubs to work toward building winning teams without having to be wholly focused on the revenues they are making at the local level. In that sense, MLBAM and MLBN will add security for those small-to-mid markets looking to access risk in the free agency market.


Maury BrownMaury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He is contributor to Baseball Prospectus, and is available as a freelance writer. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network.

Don't forget to register and log in on The Biz of Baseball site to get updates via your in-box, and see information only logged in members can see.

Subscribe to The Biz of Baseball

Add to GoogleAdd to My Yahoo!

Subscribe in Bloglines


 
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?