what is ventolin inhaler used for what is the dose for plavix canadarx buy generic viagra online from canada buy lipitor online cheap pictures of trazodone pills ramipril spc where can i order clonidine abana tablets 60 what is the medicine bactroban used for low cost quibron-t aricept 20 mg daily i pill mestinon website billig calcium carbonate online kaufen buy cialis soft 50 tenormin 50 mg daily cheap propecia alternative buy benzac 50 where can i purchase nexium reviews on casodex what does orange juice due to allegra what is the maximum dosage for wellbutrin xl how much nolva to take for pct bupron to buy how to use lamisil cream for toenail fungus can you get high off benadryl liquid gels cheapest tinidazole in the uk buying indocin in manchester what is the best viagra for women order mentax overnight accutane purchase online uk doxycycline hyclate 100mg how to use generic name for atrovent xeloda cheap uk acticin dermal cream generic viagra us shipping buy sustiva pills online generic lipitor price costco crestor vs lipitor price allopurinol medication guide used to treat cephalexin us companies only buying glyset ordering glucotrol xl overnight glipizide metronidazole 500mg iv cefixime capsules 400 mg canadian online pharmacy for minocin billig cyklokapron online kaufen metformin pills smell like fish i pill uroxatral website cheap contact lenses no prescription is it safe to buy zithromax online buy serophene mg online mobic discount is it illegal to order generic lasix tadalis sx uk online comprar propecia sin receta donde puedo comprar serophene how to buy differin 0.3 define content validity xenical australia online buy remeron without a script buy liposafe hong kong cheap accutane pills generic generic pills for malegra dxt how much will claritin cost why has remeron been discontinued haridra cost in canada docycycline hyclate 100mg online no prescription canada pharmacy low cost overnight bactrim cheap generic grifulvin v billig beconase aq online kaufen costco pharmacy voltaren price cheap acivir pills view topic prescription evecare for purchase revatio online pharmacy uk crestor for men sale in uk imitrex sold over counter toprol xl online in usa can you buy revatio discount counter buy brand zovirax what does mean allegra name buy baclofen inhaler canada buy rumalaya gel in ireland remeron no prescription reviews purchase ortho tri cyclen on line in canada retino pills buy where can i get fucidin pills viagra over the counter alternative desert sky pharmacy lipitor mexico how to buy arimidex in canada scalp acne after accutane do i need a prescription for starlix walmart cialis bactroban online no prescription purchase ponstel cheap purchasing kytril online uk what is hyaluronic acid drugs buy kamagra uk online pharmacy bupropion and xanax combination cheap flagyl er uk viagra cialis trial packs levitra buy fml forte online pharmacy caverta generico italiano buy paroxetine in india online accutane in canada prozac nation film trailer diprosone cream ortho tri-cyclen where can i buy it Purchase acticin 10 pharmacy can i buy zantac in canada best site to buy desyrel what does viagra feel like yahoo esomeprazole during pregnancy aciclovir 400mg spc original finax online herbal blue pill uk cytoxan overnight delivery cyklokapron dose menorrhagia can you order lopressor cipla medpro deal brand name shatavari online order etodolac online safe buy tadalis sx online ginseng usa sale bbc schedule sale lincocin is it safe to order medrol order hydrochlorothiazide 50mg nitrofurantoin on line no script buy adalat 200 prometrium prix en pharmacie en france purchase lasix cheap nimotop without insurance zetia for discount is generic viagra available at walgreens synthroid pills pictures is nexium over the counter in canada buy viagra 100 mg voltaren pills 75mg zenegra purchase in canada no prescription what drug category is precose buy medrol online india legal buy metoclopramide online canada are goodrx coupons valid over the counter alternative to wellbutrin avalide drugs for sale order evista online in usa best place to order pariet in us india online pharmacy viagra buy eurax 15mg online cafergot overnight shipping cheap zovirax online from usa can you buy cleocin in ireland safe buy atarax online aspirin medication classification risperdal now co uk canadian pharmacy anafranil erexin-v discount best place to buy zyrtec can you buy levitra super active in ireland 30mg uk what are erythromycin tablets used for diclofenac gel order online canada chloramphenicol valacyclovir hcl generic side effects valtrex does venlor cause weight gain better than lithium what is sustiva used for caverta side effects long term use online drug stores in usa trileptal how to buy what is effexor xr prescribed for claritin medicine online original feldene online to buy extendaquin dilantin online ordering acquistare periactin in italia witch doctor stats hell how much is maxalt without insurance where celadrin about cipla pharmaceutical company compazine limited india cymbalta generic brand cialis low cost generic buy acivir pills 11 pharmacy buy brand name zoloft us pharmacies online that sell ceftin buy amitriptyline line cheapest generic voltaren in usa himcolin shoppers drug mart pharmacy that sells propecia most reliable place to buy ranitidine online diclofenac sodium alcohol side effects why has atrovent been discontinued pharmacie de garde province du luxembourg comprar midamor portugal cheap ralista pills buy cheap kamagra tablets ajanta pharma high blood pressure medications hydrochlorothiazide buy metformin paypal accepted buy proscar online thru paypals what is the correct dosage of coreg cheap micronase usa orlistat online consultation brand name nimotop online periactin from india forum pharmacie en ligne france cheap unisom uk buy cipla cialis domperidone buy breastfeeding order orlistat canada januvia sales forecast in india the new order alliance daoc generic abana online bestellen order rumalaya forte medication by mail fluconazole side effects autism cialis online ireland doxycycline acne gets worse before gets better order haridra online lozol delivery duphalac dose for kids finasteride 1mg canadian pharmacy where can i buy amoxicillin antibiotics online what is ponstel made of asacol 40mg original gyne-lotrimin online chinese cialis is generic cystone effective culturismo femenino dietas asacol hd prices is voltaren better than deep heat nootropil attack dose tricor sales services seroflo low dose birth control generic zantac for infants what types of diflucan are there buy retino a cream 0,025 paypal buy viagra sublingual online no prescription us nizoral online store purchase minocycline cheap guaranteed different colors of synthroid pills rhinathiol expectorant side effects elocon on line no script levlen cheap cheap zyprexa generic atarax medication definition buy erythromycin perth australia retail cost of topamax zantac 75 maximum dosage what is colospa how can i get a prescription for wellbutrin what does ventolin hfa treat purchase amoxil on line in canada buy mentax online amazon wellbutrin 10 mg cost cardizem india no prescription best place buy torsemide generic levitra dapoxetine female cialis on line no script buy meclizine hong kong generic third world now that we found love lyrics can you buy estrace in ireland buy canada no prescription for viagra soft buy tinidazole for daily use generic viagra online us buy ortho tri-cyclen inhaler canada capoten cost canadian ampicillin uses uti comprar stromectol en argentina can you buy hydrocodone online legally i pill pariet website azithromycin side effects in children viagra female germany capoten drug category actoplus met lawsuit settlements buying benzac using paypal health canada lexapro cabergoline men libido cheap viagra free delivery allopurinol non perscription countries generic cialis tadalafil 20 mg india best drugstore foundation for oily skin acne prone skin is there a generic drug for cymbalta etodolac 500 mg reviews accutane medicine interactions brand indinavir buy 100mg viagra street price what diet pills are safe to take with zoloft sores in mouth from methotrexate order doxycycline usa elocon drug classification trial erection packs 2 to buy in the canada without a prescription premarin price what is zebeta made of micardis plus 80 12.5 mg 28 tablet generic azulfidine usa pharmacy no prescription yasmin norvasc iv dose bupropion canada head office kegunaan elocon salep online pharmacy amaryl cystone online coupon code celebrex shopping abilify coupons and discounts special instructions that must be followed when taking simvastatin how to buy oxytrol in london reputable online pharmacy provigil cephalexin best online non prescription pharmacy what does saw palmetto contain is there a generic for ditropan all types coreg pills frumil to purchase without a prescription order viagra plus in prescriptions buspar reviews for gad zebeta on line side effects of prednisone 10mg tablets buy birth control online mastercard purchase aciphex 6 canadian pharmacy aldactone reviews for men is lamictal better than lithium comprar moduretic portugal online pharmacy prescription drugs and generic medications trusted place to buy propecia where to buy leanspa acai cleanse purinethol in croatia strattera dose for adults zanaflex in croatia tretinoin 0,025 online uk best online pharmacy generic viagra soft can you get high from snorting paxil depakote 40 mg dose discount canadian pharmacy valtrex singulair online sales benefits of ginseng capsules rosuvastatin shortage side effects of lamisil and alcohol acai and medication bactrim ds medication estradiol implant discontinued ditropan legal us does tegretol retard cause weight gain neurontin mg buy nymphomax canada prescription pill identifier white oblong m357 cephalexin in pregnancy nhs where to buy cheap generic lopid levitra plus canada head office can you order allegra canada minocin tablet sale viagra online purchase cordarone online meds reviews on malegra dxt betnovate c cream usage clindamycin hydrochloride and alcohol can you buy viagra over the counter in the uk online dostinex mg usa cardizem tablets purchase on line kamagra uk co uk is it legal to buy zithromax online renagel 800 mg tablets mixing viagra and alcohol trental cost comparison walgreens generic drug list elocon on line in the canada date lipitor goes generic generic colospa in usa generic beconase aq no prescription detrol without insurance buy kamagra in ireland suhagra generic 2013 drugs ibuprofen 400mg tab side effects of coming off citalopram what is dapoxetine digoxin medicinenet online pharmacy overnight shipping no prescription buy asacol mg online buy evista paypal accepted get precose toronto costco pharmacy speman price generico do remedio keflex billig cialis sublingual online kaufen side effects estrace pills buspar drug in mexico pharmacy propecia pills singapore how to order diamox online vytorin online ordering actoplus met from europe fastest voveran sr uk delivery overnight pharmacy prescription bupron sr nitrofurantoin ships from india buy depakote online uk elocon online bestellen natural pills for water retention can i get moduretic buy evecare no prescription fast delivery life insurance can you buy aciclovir over the counter in germany terramycin prices at costco is clonidine over the counter buy generic minocycline que es kamagra 50 gel oral how to taper prednisone 40 mg generic combivent for sale on line what kind of medication is abilify cordarone pills buy online cialis over counter trazodone pliva 433 side effects; costco pharmacy duetact price celexa canada head office buy diclofenac gel como usar las pastillas xenical ranitidine 150 capsules order minipress cheap cialis tablet appearance antifludes jarabe adulto depakote coupon code online nootropil purchase buy cozaar perth australia norvasc canada prescription where to get live bait in hawaii how to take arimidex for pct low cost astelin where to buy seroflo in canada safely flagyl medication dogs buy online cefadroxil generic comprar atacand online albenza visa what are the side effects of aspirin buy ephedraxin capsules remeron where to get online doctor prescriptions xanax wellbutrin weight loss study buy compazine generic what is ortho tri-cyclen for clorfenamina maleato dosis order bupron sr online with visa safe place order toradol iv terbutaline asthma lipitor low cost program amaryl over the counter 1mg drugs online does work discount buy alli order minocycline overnight amantadine online purchase arjuna on line in usa keftab paypal lozol looking for over the counter chloramphenicol for children what is detrol for sandoz finasteride 5mg pramipexole hydrochloride tablets can i buy metformin over the counter in uk generic celebrex usa how to use shatavari churna via medstore reviews wellbutrin sr medicine is retin-a ge a prescription drug promethazine w/codeine uk esomeprazole magnesium pregnancy cost of keflex without insurance bupropion cost in canada feldene online overnight purchase amaryl in india where can i get cialis in australia levitra super active over the counter vega 100 tablets singulair over counter equivalent cialis sublingual mg tablet dog tramadol no prescription fast revia deleviery viagra plus tablets from buy can you buy pulmicort over the counter in germany aspirin dose in suspected mi comprar relafen original how to prepare ampicillin stock inhalers online uk brahmi tea australia how to get clomid with a prescription order yagara online no prescription with a visa losartan generic for hyzaar cheap genuine combivent online post cycle therapy triamterene buy actos greece is it legal to purchase prescriptions online lamisil 100mg cheep quibron-t australia price propecia reviews and dosage cialis super active overnight delivery online pill pharmacy billig zyrtec online kaufen what does benicar hct treat online augmentin india rosuvastatin medicine what are the long term side effects of taking metformin buy zyloprim 80 mg online best place buy nymphomax permethrin insecticide brands new england journal of medicine zithromax study danazol next day shipping viagra generic online uk viagra store online is cafergot available on line in canada acai berry costco diet how to use himalaya ayurslim buy propecia paypal accepted can you get high from voltaren can you buy diclofenac over counter england can i order levitra professional no prescription in the usa buy elocon australia viagra online australian pharmacy side effects of zofran 8 mg purchase cafergot mg remeron dose for sleep cheapest clomid no prescription compare prices diakof american suhagra use of lasix in horse racing buy ciplox without a script best anxiety medication with least side effects pariet side effects weight gain zyban uk online buy unisom rx clomiphene side effects pcos post cycle therapy aceon levitra reviews revolution health flagyl comp toprol xl 100 review diflucan fluconazole keflex online legally no prescription lipitor online buy aciphex with paypal health canada inderal side effects of biaxin bid 500mg buy isoptin sr mail order eulexin
Home Pete Toms LWIB: The Blockbuster Texas Rangers TV Deal with FOX Sports Southwest

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 1038 guests online

Atom RSS

LWIB: The Blockbuster Texas Rangers TV Deal with FOX Sports Southwest PDF Print E-mail
User Rating: / 27
PoorBest 
Pete Toms Article Archive
Written by Pete Toms   
Tuesday, 05 October 2010 07:11

Last Week in Bizball by Pete Toms

This week in “Last Week in BizBall”, the Texas Rangers blockbuster deal with Fox Sports Southwest.

RANGERS BLOCKBUSTER DEAL WITH FS SOUTHWEST, WHO’S NEXT?

The biggest story LWIB was the report in USA Today that the Texas Rangers and Fox Sports Southwest (FSSW) had reached agreement on a 20 year extension of their current deal which would pay the baseball franchise $3 billion. Maury Brown of the Biz of Baseball was very quick to question the reported dollar figure, he wrote that …some have said that the figures could be off – possibly wildly. As the day progressed, reporters received confirmation from Fox that a 20 year extension had been agreed upon but the $3 billion figure was “wildly inflated”. Nobody from either side would go on the record but numerous reports pegged the value of the deal at $1.6 billion. Reportedly, the extension takes effect after the 2014 season while the Rangers will receive an upfront payment - again reportedly, of approximately $80 million - before next season.

The Rangers current deal with FSSW was concluded in 2000. That deal pays the Rangers $17-$20 million annually (some reports cite $300 million over 15 years, others $250 million over the same) for their local cable TV rights. Only 10 years later Fox has agreed to QUADRUPLE (or more) their rights fee for Rangers baseball. This enormous and rapid increase in the value of the Rangers local TV rights is the most recent example of the critical importance of Regional Sports Networks (RSNs) to the biz of baseball. In 06, the Angels agreed to a 10 year/$500 million deal with FSN West. In 07, it was the Mariners and FSN Northwest agreeing to 12 years/$500 million. In 08, it was the Tigers turn when FSN Detroit agreed to pay a reported $400 million for 10 years.

In August, LWIB examined the role of RSNs in MLB and I wrote, “The vigorous competition amongst MSOs, telcos, sat providers and programmers for local TV rights has proven a cash windfall for many franchises with some potentially blockbuster deals on the horizon.” As was discussed in the report, the importance of Rangers baseball to Fox initially came to light during the bankruptcy auction of the franchise earlier this year. Many baseball biz observers were surprised that Fox considered bidding for the franchise, given their reported losses of hundreds of millions of dollars incurred as owners of the Los Angeles Dodgers from 98-04. But Fox’s interest in owning the Rangers had nothing to do with operating another baseball franchise and everything to do with preventing a competing RSN to FSSW from entering the market. Any upstart RSN in the Fort Worth-Dallas market would require Rangers baseball and the near 162 games that would provide the foundation of it’s programming. Similarly, Mark Cuban’s plan to launch an RSN in Fort-Worth Dallas was the key to his interest in acquiring the Rangers. Locking up the Rangers rights until 2034 also allows Fox to prevent Comcast from launching a competing RSN to FSSW. Comcast shares ownership of a number of RSNs with MLB franchises. CSN Bay Area (Giants), CSN Chicago (White Sox, Cubs) CSN Philadelphia (Phillies) and SportsNet NY (Mets)). In fact, the Rangers extension with FSSW was viewed by some as a sign that Fox has conceded that they will soon lose the rights to Astros baseball to Comcast. Speculation has been widespread for months that the Astros will exercise their out clause with Fox Sports Houston after the 2012 season. Reportedly the competition amongst Fox, Comcast and AT&T/EchoStar for Astros rights is fierce with Comcast the frontrunner. (Comcast is the dominant cable provider in the Houston market). LWIB, David Barron wrote;

Fox’s willingness to commit to a new deal with the Rangers was interpreted Monday as an indication that it is moving on from what appears to be a futile attempt to keep the Rockets and Astros past 2012. Major League Baseball’s rules governing broadcasting territories will allow FS Southwest to continue airing Rangers games in Houston, even if the Astros and Rockets go elsewhere.

The cable industry‘s willingness to pay ever increasing rights fees for local sports is an effort to prevent “cord cutting“ amongst their subscribers. At the same time, cable is increasingly a must for sports fans as “over the air“ broadcasters are unable to compete with cable for sports rights (including national) due to cable‘s more lucrative “dual revenue“ (sub fees and ads) model. In turn, the trend of MLB franchises cutting huge deals with RSNs for local TV rights is likely to continue. Two of MLB’s premier franchises, in two of the country’s largest media markets, could be next to cash in. The Dodgers current deal with Fox Sports West expires after 2013 and reportedly pays the franchise $45 million annually. Given that the Rangers will be earning $80 million annually from FSSW after 2014, speculation has begun as to what local Dodgers rights will fetch. (It should be noted that Fort Worth-Dallas is the 5th largest TV market in the country). Some pundits foresee the next Dodgers local TV deal earning the franchise $100 million annually. Court filings in the divorce trial of Dodgers owners Frank and Jamie McCourt have revealed that the franchise has examined the idea of launching their own RSN, nominally titled DTV (Dodgers TV). However, launching an RSN is a complicated proposition, carriage and programming issues being key. LWIB, Jon Weinbach wrote that a Dodgers owned RSN might not be a realistic goal.

SELECT READ MORE TO SEE THE REST OF THIS ARTICLE

Fox already has two regional sports channels in Los Angeles, while Time-Warner, the dominant cable system in Los Angeles, has shown little interest in launching local sports channels. Comcast, FSN's primary competitor for local pro sports TV rights, operates channels in Chicago, Philadelphia and the Bay Area, but has no plans to launch a channel in Southern California, according to a Comcast spokesman. More broadly, it's hardly guaranteed that a Dodgers channel would automatically be available to viewers, as everyone from ESPN to the National Basketball Association to the National Football League has learned in protracted negotiations with cable operators.

The upshot: there are significant obstacles to the Dodgers launching their own channel, especially without the cooperation of another local pro team to provide year-round programming. In Southern California, FSN currently has the rights to all of the major pro franchises, including the NBA's Los Angeles Lakers, who are by far the most-watched local team.

The launch of a Dodgers channel could also could also be precluded by the outcome the McCourt’s divorce trial. Should the cash poor Frank McCourt be forced to buy out Jamie McCourt, many speculate that a heavily front end loaded rights extension from Fox Sports West is his only hope in retaining ownership of the franchise.

Further along, since the sale of the Chicago Cubs to the Ricketts family from Tribune Co. was concluded last year, there has been speculation that a Cubs channel was in the plans. Earlier this year, Bruce Levine wrote.

The Cubs’ future on television will find them venturing out with their own Cubs cable network at some point. The historic National League team has long agreements with Comcast, as well as WGN television and radio. However, the new ownership group, led by Tom Ricketts and his family, are looking into a new 24-hour Cubs station in the future.

The opening of Camden Yards in 1992 marked the beginning of an era where playing out of a new “retro ballpark“, with all the requisite premium seating and amenities, was the key to competing economically in MLB. Today, practically all franchises have long played out of “retro ballparks” and “in stadium” revenues have been maxed out across the industry. Future battles within ownership over economic disparities are now more likely to be focused on local media revenues. Just as the Royals and Pirates of MLB could never generate a fraction of the “in stadium” revenues of the Yankees and Red Sox, nor will their local media revenues ever remotely approach those of their large market peers. Will the increasing disparities in local media revenues lead to a demand for even more (last year approx $430 million) revenue sharing? Will small revenue franchises demand that industry giants the Yankees and Red Sox report more of their earnings from RSNs YES Network and NESN, as Baseball Related Income and consequently share more of it?

Are enormous, long term local TV deals the most recent disincentive to win in MLB? These guaranteed deals generate the same amount of annual revenue regardless of the product on the field. Already, revenue sharing has diminished the financial benefit to winning. (for both payors and payees) As well, MLB has centralized revenues from digital media, primary and secondary ticketing and merchandising via Major League Baseball Advanced Media. Winning baseball games has never been less important to the top and bottom lines of MLB franchises. Rangers fans should hope that the new ownership group led by Chuck Greenberg is more interested in winning a World Series or two than it is in counting it’s guaranteed $1.6 billion from FSSW.

Last Week in BizBall will return October 18.


Pete Toms is senior writer for the Business of Sports Network, most notably, The Biz of Baseball. He looks forward to your comments and can be contacted through The Biz of Baseball.

Follow The Biz of Baseball on Twitter Twitter

FacebookFollow the Business of Sports Network on Facebook

 
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?