what does hyzaar vantin legal in england ordering albendazole canada generic from azulfidine buy dutas mexican pharmacies what does phenergan container store why is there a shortage of zestril lioresal doctors online discount canadian pharmacy ephedraxin buy phenamax hong kong purchase fucidin on line in usa lady era 10 mg cost yasmin class action in canada buying prometrium online can order mycelex-g canada where to get propecia in uk where to buy tretinoin cream uk omeprazole capsules side effects disfuncion erectil tratamiento natural benadryl online australia monavie acai berry price azithromycin 250 mg pak tab sandoz aarp medicare medication prior authorization form hyzaar combination can order pulmicort canada buy tadalafil uk lisinopril reviews users cheap cialis 20mg online best online site to buy generic viagra hctz 12.5 lisinopril 20mg tab buy topamax astrailia cheap generic viagra overnight delivery reminyl uk brand name mirapex sale wellbutrin sr online usa no prescription levaquin cost cvs can i buy phenergan over the counter cephalexin sold over counter buy lamictal 5 mg comprar voveran sr online weight gain pills that work what is amoxil 500mg www.canadian-pharmacy24h.com what are the side effects of lasix in dogs brand biaxin for sale buy maxalt mg online hydrocholorthiazide without a prescription lukol without script citalopram dosage recommended zyprexa online usa trust pharmacy viagra safe reglan buy cheapest zetia online home insurance uk levitra super active ships from india dilantin low dose birth control nexium tablets spc cheap arava is it illegal to order generic augmentin cooperativa puerto rico rincon vente de revatio au quebec rx relief card best place to buy nizoral in mexico online pharmacy uk capoten zyvox over counter why has geriforte been discontinued cost of cymbalta in australia cheap florinef pills pharmacy buy hyaluronic acid tablets online topomax without a prescription vytorin price philippines zyloprim delivery uk sumycin shortage 2012 topamax over the counter india hoodia low dose birth control mentat legal in england best price for real brand levitra side effects of azithromycin sandoz valtrex direct pharmacy comprar viagra en chile order cabgolin prograf online uk cost of abilify 10mg lasix side effects sodium what is methocarbamol 750 birth control pills terramycin buy acai berry uk buy diet pills online canada all pills shop discount cheap allegra india methotrexate and folic acid dose buy omnicef no prescription fast delivery prometrium prices at costco kamagra gold pills drugstore generic pills for asacol didronel delivery uk best site to buy erythromycin where to place nitroglycerin patch colchicine overseas buy kytril inhaler canada list of tesco stores selling rocaltrol sale vasotec how to buy arjuna in canada cheap midamor uk valtrex over the counter equivalent tetracycline dosages acne generic cleocin gel switzerland cheapest pure acai berry aleve d online buy capoten australia buy online probalan generic purchase elocon in mexico comprar flomax en argentina asthma inhalers without prescriptions side effects of levlen pill non persciption nitroglycerin what does vc mean in phenergan vc mba jobs in pharmaceutical companies in india best way to get pain pills from dr where to diamox ultra low dose citalopram elavil lawsuit settlements where to buy imuran in canada safely typical starting dose of synthroid raclet allegra for sale birth control pills lanoxin medicine cozaar losartan augmentin 375mg tablets emc fluconazole 50 mg and alcohol buy extendaquin pills allies web canadian forces links voltaren retard 75mg tablets pharmacy chains in ontario canada zyban pharmacy wholesale kamagra oral jelly sildenafil non prescription kamagra walmart pharmacy discount medications buy lasix from mexico online extendaquin pills sweat my zenegra coupons finpecia finasteride 1 mg 10 tablets buy generic minocin online with prescription seroquel 200 mg 60 film tablet luvox online from usa cheap levitra plus buy online best erection medication market what is atenolol medication kamagra oral jelly prices usa macrodantin nitrofurantoin dosage can you buy viagra india insulin resistance treatment diclofenac gel buy on line cialis sales uk 20mg buy tetracycline mexican pharmacies order cialis soft cheap where to buy dapoxetine colchicine no prescription needed buy plavix online usa buy ditropan online reviews does cialis have long term side effects order rosuvastatin in crestor online mobic prescription drugs cost of doxycycline without insurance amoxil overnight delivery comprar septilin portugal adalat hindi serial sony plavix dosage too high which is the best antibiotic for uti buy levitra 20mg online pariet uses medication original methotrexate online pet allies show low az directions buy amlodipine besylate online zyvox paypal paxil uk cipro over counter canada buy rumalaya gel online overnight erythromycin indian manufacturers purchase metformin hydrochloride side effects of red panax ginseng extract best price for real levothroid cephalexin noprescrition needed canada online pharmacy purchase vpxl in mexico best cialis professional prices cheapest ayurslim uk brand name allegra over the counter dosage metoprolol generic for lopressor sildenafil citrate 100mg and dapoxetine 60mg gold vigra review purchase lisinopril online acquistare proventil in italia pink viagra in india how much does seroquel cost in canada discount isoniazid buy ampicillin bacterial infections buy skelaxin generic is there a real generic for viagra zoloft 75 mg tablet citalopram 40 mg tiredness buy alligator garr generic avapro drug reglan tablets dose bupron sr online ordering piracetam uk seller cymbalta cost comparison order nootropil pill why has terramycin been discontinued do i need a prescription for zovirax cream there generic form minocycline minocycline better than doxycycline acne propecia hair loss dosage buy valtrex without hydrochlorothiazide tablets india betnovate gm price mobic not generic cialis soft shop net buy nitrofurantoin 100mg online serpina order in the us cheapest canadian drugstore what is the drug zyrtec used for where prometrium where purchase colospa low income housing alliance conference washington state donde comprar lisinopril current price metoclopramide use betoptic coupon online eli lilly cymbalta lawsuit exelon corporation dividend alli in canada what is suhagra used for nexium side effects dizziness augmentin costco price buy paroxetine apotex acquisto sinemet sicuro online risperdal .25 mg tablet speman no prescription needed nolvadex pct how long does tetracycline interfere with birth control pills cymbalta 40 mg dose combivent nebuliser nolvadex lowest priceonline ciprofloxacin side effects bnf methotrexate online usa no prescription can you buy ventolin over counter france where to buy viagra over the counter in canada cheap nolvadex uk buy micardis line nizagara birth control online mexico prescription nexium 40mg where can i order retin a that ship to south africa cialis vs viagra blog gonorrhea medication online can i get zyban macrodantin nitrofurantoin alcohol aldactone cheap canada pharmacy where to buy cialis in toronto canada keftab tablets 150 mg chloromycetin overnight pharmacy side effects of claritin 24 hour allergy all types gyne-lotrimin pills depo medrol quanto costa premarin price in india how long does it take for wellbutrin sr to work anacin in the uk now low dose naltrexone crohn;s celebrex generico mexico clozaril discontinued is generic yagara effective i missed my dose of paxil in-house pharmacy uk purchase lorazepam online no prescription how long does levitra last vs cialis vs viagra generic eurax uk paypal where to alliance spend honor points testosterone therapy dosage for women lanoxin to buy from europe buy chloramphenicol 5 printable coupons for voltaren gel cheap rx 8 insurance where to purchase promethazine codeine syrup how to use nexium esomeprazole cheapest nexium azithromycin better than erythromycin aricept ships from india low cost overnight altace ampicillin where to purchase cheap generic kamagra gold liquid ponstel review buy avapro 150 mg online rosuvastatin 40 mg tablet midamor spain over counter can you buy inhalers over counter ventolin here is pulmicort legal in uk propecia 100mg cheap alli not working anymore where to purchase isoptin cytoxan spain over counter gasex brand positioning buy online no prescription brand levitra online pharmacy market germany lisinopril rx benadryl online pharmacy uk zanaflex pills online in the india cafergot where to get bystolic cost can you buy baclofen online meclizine lawsuit canada over the counter synthroid substitute what is sustiva for how often to use proventil tetracycline generic for fast torsemide deleviery paxil lawsuit settlement 2012 where to buy glucophage with echeck buy ambien no prescription lasix usa customer reviews on generic viagra cheapest place to buy aldactone where alli is mail order imuran safe ordering viagra extremely buy tramadol cod saturday delivery purchase coreg canada premarin cost canadian ordering prescription medicines online best place to buy alligator clips canadian albuterol sulfate inhalation solution 0.083 expiration zithromax 5 day pack craigslist manchester united tickets amoxil noprescrition needed usa online pharmacy anacin usa cvs prices dems reject amendment to ban viagra for sex offenders tenormin online overnight shipping buy differin usa generic diclofenac potassium tablets anacin shortage canada buy hyzaar online canada buy prevacid 15mg online where does lasix work in the kidney arimidex tablets alcohol comprar atrovent pela internet buy bystolic generic order diovan overnight atorvastatin vs simvastatin dosage can you get asacol canadian online pharmacy using paypal arimidex max dose where to buy viagra in auckland what is cozaar can you buy zebeta pharmacy is rumalaya legal in uk ortho tri-cyclen generic name accutane australia price my canadian pharm vpxl on line buy confido himalaya viagra in uk buy canadianpharmacymeds com legitimate purchase isoniazid in canada acheter pas cher vpxl where to buy cheap generic propranolol order singulair 10mg order erection packs 1 from canadian pharmacy online i pill rosuvastatin website drug cheap amitriptyline without food dose flagyl dogs purchase inderal 10mg acheter pas cher yagara how long does it take for cymbalta to work for back pain symptoms of withdrawal from trazodone insomnia what is probalan made of levitra sales uk drug cialis mg mexico buy accutane with isotretinoin generic tadalis sx refill pack migraine medicine similar to topamax herbal viagra in bangladesh ginseng rxlist can buy antibiotics online uk azithromycin cialis super active doctors online uk version of medrol paxil for sale online revista palermo blanca online coumadin without script buy brahmi tea haldol cost without insurance to buy vasotec in uk claritin online forum buy cheap prescription over the counter overnight generic adalat anacin shop net how good is cialis for women decadron 4 mg what is doxycycline 100mg capsule accutane rx requirements altace prices cvs can i get over the counter antibiotics for uti amitriptyline on line purchase there generic brand propecia blount discount pharmacy gill st hyaluronic acid tablets australia generic medrol uk paypal drugs buy elimite online vytorin tablets on line to buy is it legal to buy viagra online in usa penicillin online no prescription nizoral no prescription overnight delivery buy bactrim tablets usa euro meds online pharmacy fertomid refills oral antifungal medicine for thrush anacin from europe buy revatio with e check johnson and johnson retin a 0.05 cream cicloferon aciclovir spray para que sirve women taking viagra recreationally trileptal for sale philippines long time side effects dostinex cheap artane no prescription bupropion australia ephedraxin order in the us flagyl oral tablet 500 mg is there a drug comparative to femara buy vermox with no rx purchasing acai online buy elavil in singapore can you get inhalers over the counter uk what is atarax pharmacy that sells evecare generic tramadol no prescription cod hcg pharmacies in broward county is hydrea available over the counter recommended dosage of metformin for pcos do over the counter water pills work for high blood pressure can you buy viagra with no prescription baclofen drug store online danazol pharmacy order zyrtec long time side effects bromocriptine mesylate dosage orlistat price us safe vasotec buy nootropil by mail where can you buy prednisone can you just take powder amoxicillin buy lantus online cheap clindamycin dosage for bv prednisone med pack dosage order amitriptyline no prescription coupon for advair diskus 500 50 can you buy painkillers online strattera canada no prescription strattera daily use reviews how to get prescribed painkillers online cane you order periactin canadian suppliers of caverta in us buy tinidazole astrailia purchasing viagra professional online uk alli capsules 42 pack generic serpina safe effexor xr canada no prescription buy cialis soft online mexico no prescription buy rumalaya 100mg online buy amitriptyline tablets www.canadapharmacy24hr.com low price betnovate uk acheter un livre pas cher buy himcocid pills online do i need a prescription for arimidex buy levitra online with prescription atorlip 10 mg buy over the counter abilify online zestril generic lisinopril where can you get mentats purchase premarin in canada best price for depakote ginseng generic cheap costs coreg australia buy vasodilan no prescription cialis 20mg lilly 12 st fta buy depakote 200 how to import baclofen generic form of inderal donde puedo comprar atrovent benadryl online lisinopril without food motilium from usa pharmacy suhagra tablets us online buy alphagan 15mg online why was elavil discontinued buy narcotics online enhancement drugs effects levaquin tablets for sale generic pills for levlen cost of asacol 400 mg cheap atarax minipress order on web generic dutasteride buy where was broadchurch filmed itv generic citalopram overnite shipping viagra super active refill pack buy buspar visa maxaman prescription coupon what is keflex 500mg prescribed for acai with green tea capsules 1500mg canadian men's medicine buy zerit mg buy levaquin 10 probalan online pharmacy uk best anxiety pills for flying what are the side effects of stopping fosamax ampicillin tablets from buy buy kamagra online review drug best generic zovirax sites how to take duphalac mg tegretol 200 mg 160 tablet fiyat? finax finasteride side effects periactin 100mg tablet tenormin 25 mg where to buy in usa where to buy cytotec pills aspirin 500 mg price levothroid weight loss seroflo uk online arjuna online coupon code robaxin high bluelight etodolac on line no script what is voltaren forte 50 mg buy actos online in usa how long does viagra side effects last do you need prescription anxiety pills prescription drug atrovent cheap canadian pharmacy doxycycline aldactone tablets high blood pressure metoclopramide tablets msds bactrim pills for acne artane tablets uses best place to buy viagra plus in canada paroxetine usa pharmacy erythromycin 250mg capsules uroxatral spain how much is doxycycline tablets where to buy protonix online mexico Purchase erythromycin 250mg tablets triamterene cheap buy trazodone without rx diakof online forum click here what is ampicillin resistance protein thalidomide disaster canadian viagra online fedex viagra plus daily use reviews januvia prescribing information uk aciphex non drug generic rabeprazole apcalis sx no prescription reviews where to get arimidex can you get aleve in canada beat way to order mobic cheap aciphex cheap canadian pharmacy generic prevacid india viagra plus order buying capoten for dogs liquid pamelor review buy actonel 10 sumycin buy canada windsor-canada-pharmacy advair 500 diskus side effects buy alli 15mg online elocon wanted online review rhinocort aqua discount coupon antibiotics alcohol amoxicillin buy celexa online uk drug market order flonase erectile dysfunction treatment options-pumps exelon patch discounts arimidex pharmacies prescription canadian phenergan low dose birth control i pill zoloft website generic altace for sale uk differin online in usa levitra for sale in canada are water pills safe serpina discount voucher ordering cialis legally online pulmicort turbuhaler can order duphalac canada tramadol online no prescription uk tadapox ordering no prescription buy himplasia australia buy kamagra jellyfish online uk aleve tablets us online generic viagra reviews forum 100mg online pharmacy accutane treatment for acne regenon retard effet secondaire indocin side effects weight gain what drugs are legal in europe sinemet 40 mg pharmacy buy atacand from canada lincocin generic wikipedia drugs buy lozol in uk zanaflex vs soma high feldene tablets side effects can you get viagra at walmart premarin dosage and administration generic lotrisone in usa generic actonel safe ditropan cost in canada buspar prices usa where can i buy nolvadex-d arimidex lawsuit canada atrovent nebulizer dosage pediatric online click here discount haridra how long does liquid cialis take to kick in what does elimite prilosec australia price dapoxetine direct pharmacy how much is accutane in canada best place to order dipyridamole in us low cost tadacip luvox discount card discount feldene of canada atacand generico online best place to buy chloromycetin online valtrex rx number side effects of cytotec for induction of labor ashwagandha mg tablet flagyl and alcohol reaction cardura drug store online generic accutane from india us online pharmacy no prescription clonidine naprosyn barato trusted rx today us can you buy suprax over the counter cafergot online usa no prescription i pill dostinex website citalopram now co uk reviews on ciplox cheap cytotec confido prescription coupon lowest price alesse reviews on dilantin buy haridra perth australia propecia reviews uk cheap nitrofurantoin india generic buy cheap levothyroxine sodium flovent diskus how to use alli prescription drug listen to purim music online finpecia medicine effects buy extendaquin australia how long to use evista retin-a gel order alligator pharmacy cvs pharmacy online training us pharmacies online that sell voltaren cleocin dosage forms lotensin hct reviews mail order fluoxetine what does requip pill look like lerk umbra does tricare pay for viagra robaxin online bestellen what does valtrex pill look like antabuse generic wikipedia drugs triamterene side effects rash india triamterene price lamisil tablets 250mg used for
Home Pete Toms

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 332 guests online

Atom RSS

feed-image Feed Entries
Pete Toms Article Archive


TOMS: Why MLB is Thriving.... and Dying PDF Print E-mail
User Rating: / 388
PoorBest 
Pete Toms Article Archive
Written by Pete Toms   
Monday, 10 February 2014 15:02

MLBEarlier this winter I listened to a sports radio segment where 2 Toronto sports pundits attempted to explain the seemingly counter - intuitive news that MLB annual revenues have climbed to upwards of $8 billion.

On the one hand, they noted, steadily diminishing national TV ratings (including ASG and WS), reveal that baseball is clearly less popular. And hasn’t the NFL, long ago, and by a wide margin, supplanted MLB as the dominant pro sports league? And wasn’t it, after all, inevitable? Isn’t baseball anachronistic? From a slower, analogue, monolithic popular culture?

On the other hand, they understood why MLB revenues have skyrocketed. The biggest factor being the enormous increase in TV $$ from both national, and especially, local deals. Plus, attendance is stable, at near-record levels. And yes, almost ironically, slow, staid MLB has better exploited the internet than any of the other so-called Big 4.

They’re right, on both counts. Yes, baseball is dying. And the evidence is not found in the diminished national TV ratings (TV ratings are down for all programming except the NFL) but in who, and who isn’t, watching. Old guys, not young guys, like baseball. Jonathan Mahler was amongst those who reported this fall that the median age of the 2012 WS TV viewer was 53.4. Perhaps more telling is the steady, long-term decline in the number of kids playing baseball.

But it is precisely because MLB fans are old that business is booming. The huge boost in MLB TV $$ comes from us old guys who subscribe to Pay TV. We are footing the bill for the recent spate of MLB mega deals with local RSNs. We aren’t the cord-cutting, digital natives who have never paid for content. They believe that paying $100/month to watch video is stupid. Earlier in the year Joe Flint reported that, “By 2015, almost half of all television viewing will be done by folks over the age of 50…” The migration of local MLB broadcasts from free over-the-air TV to Pay TV was inevitable. Why? Because MLB fans can afford Pay TV. We are baby boomers, the most affluent generation in history. And baseball fans are the most affluent of sports fans. We complain about our cable bills, we’re old, so we’re allowed. But we’ll still pay for the nightly, pleasant, familiar, tribal, ritualistic pleasures of watching our team on our big TVs, in our comfortable basements. It feels good.

While there is debate about the future prospects for the Pay TV industry, under pressure from OTT, potentially one, or some of, Google, Apple and Aereo, and politicians and regulators sabre-rattling over channel bundling…. in the present, it’s still thriving. And as long as MLB continues to aggregate large TV audiences of purchasers of financial services, luxury autos and ED remedies , there’ll be plenty of money in it for them.

You can follow me on Twitter @PeteToms


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

 
LWIB: Dynamic Ticket Pricing and the Secondary Market in MLB, Worldwide Draft Update, Plus Tidbits PDF Print E-mail
User Rating: / 11
PoorBest 
Pete Toms Article Archive
Written by Pete Toms   
Monday, 27 February 2012 18:03

Last Week in Bizball by Pete Toms

This week in “Last Week in Bizball”, dynamic pricing and the secondary market, worldwide draft update, plus tidbits.

DYNAMIC PRICING & THE SECONDARY MARKET

Seemingly every week I mention that another team has either implemented, or expanded their use of, dynamic pricing of tickets. Another subject that I frequently bring attention to is the challenges that the secondary ticket market pose to many MLB franchises. Despite the reported approximate $60 million annually that BAM earns from their formal partnership with StubHub, and the avalanche of qualified sales leads it generates, many clubs believe that secondary ticketing is killing their primary sales. My piece from December on MLB and secondary ticketing included this quote (courtesy of SBJ) from Braves Executive Vice President of Sales and Marketing Derek Schiller, “I don’t believe there is any bigger obstacle or issue, any bigger threat to the professional team sports marketplace and industry as a whole…This is the single biggest issue facing our industry….The amount of dollars at risk is growing near exponentially. And we absolutely as an industry — and not just baseball — need to manage it.”

The Giants were the first MLB franchise to implement dynamic pricing, using it on a limited basis for the 09 season. This season, 17 teams will use dynamic pricing. 10 of those teams will use dynamic pricing to set the price of all single-game tickets. Initially, the motive behind dynamic pricing was both to increase the number of tickets sold and the average sale price. More recently, clubs are also implementing and expanding the use of dynamic pricing to limit the amount of ticket inventory resold on the secondary market. LWIB Danny Ecker reported on the Cubs decision to use dynamic pricing this season for 5,000 bleacher seats. According to the piece, “Expanding that model to the entire ballpark could mean recouping as much as $11 million a year from resellers.” And, “Teams are looking at (dynamic pricing) to capture some of that secondary market that they're not capturing,” says Colin Faulkner, the Cubs' vice president of ticket sales and service…”

WORLWIDE DRAFT UPDATE

January 9 was the date of the first meeting of the International Talent Committee. The co-chairs for the committee are MLBPA ED Michael Weiner and MLB’s senior executive on labour matters, Rob Manfred. According to the press release, “…the International Talent Committee is responsible for examining a number of areas related to the procuring of international players including but not limited to the exploration of the possibility of an international draft, improving the education and acculturation programs of Clubs at their international academies and the development of appropriate country-by-country plans for playing and development opportunities for players prior to draft eligibility.” This committee exists as a direct result of the new CBA, which contemplates either an expansion of the Rule 4 draft, or the introduction of a wholly separate “international” draft. (The Rule 4 currently includes Canada and Puerto Rico). After years of attempting to control club spending in the Rule 4 via his office’s “slot recommendations” commissioner Selig succeeded in the last round of negotiations in implementing fundamental changes to the acquisition of amateur talent. Beginning this season, clubs exceeding spending limits in both the Rule 4 and international free agent market will be severely penalized by MLB. In addition, MLB foresees the implementation of a draft in the Dominican Republic as part of its ongoing efforts to reduce age/identity fraud and bonus skimming there. LWIB, commissioner Selig commented to Baseball America on the much discussed worldwide draft, "It is inevitable. I would like to see it. We have made some significant progress to that end. When we went to the draft in 1965, it was to create a more level playing field. We've done that, and the same thing will have to happen internationally." Josh Leventhal added that there is plenty of opposition to a worldwide draft, both within, and outside of, MLB.

….many front-office officials have said they neither want an international draft nor are confident that MLB has the ability to pull it off.

The Dominican Republic, Venezuela and the other Latin American countries all have their own issues with laws, player registration and investigations that would need to be worked out. Then there are agreements with Asian baseball governing bodies that would have to be worked out, including Japan, Korea and Taiwan, all of which have their own professional leagues.

Some major league club officials think an international draft will penalize teams that work hard in Latin America and have invested more resources into scouting the region. However, many teams, trainers and agents have seen the writing on the wall the last couple of years that an international draft was behind MLB's efforts to reform Latin America, even if MLB didn't always explicitly frame it that way.

Also LWIB, Zachary Levine examined how the Astros attempt to greatly increase the quality and quantity of players they recruit in Latin America is being impacted by the aforementioned changes in the CBA.

SELECT READ MORE TO SEE THIS WEEK'S TIDBITS

Read more...
 
Last Week in Bizball: The Padres and Fox Sports San Diego, plus Tidbits PDF Print E-mail
User Rating: / 13
PoorBest 
Pete Toms Article Archive
Written by Pete Toms   
Tuesday, 21 February 2012 10:34

Last Week in Bizball by Pete Toms

This week in “Last Week in Bizball”, the Padres and Fox Sports San Diego, plus tidbits.

PADRES & FOX SPORTS SAN DIEGO

The Padres have concluded an agreement with the soon-to-launch Fox Sports San Diego. As a result, the Padres are going to see a big boost in local TV revenues from the reported $15 million they received last season from Cox. Beyond that, reports on the details of the deal vary greatly.

As mentioned last week, Bob Nightengale reported in USA Today that the value of the Padres/FSN deal is $1.5 billion over 20 years. LWIB Jay Posner reported that Nightengale’s numbers are exaggerated. According to Posner, the Padres will receive a 20% equity stake in the new channel (common in recent local rights deals with RSNs). Posner reports the Padres rights fee in the initial year of the deal is $30 million, with a signing bonus boosting it to $40 million. Again, according to Posner, the value of the annual rights fee will escalate about 4% annually, bringing it to approximately $65 million in its final year.

LWIB, Bill Shaikin reported that the deal includes an upfront $150 million signing bonus for the Padres. According to Shaikin, Jeff Moorad intends to use Fox’s money to complete the purchase of the franchise from John Moores. You likely know that the owners recently, and surprisingly, delayed approval of the completion of the sale. Commissioner Selig, in the cases of Tom Hicks and Frank McCourt, has set a precedent of forbidding owners to invest Fox’s money outside their baseball franchises. And so, MLB’s approval of both the transfer of ownership of the Padres, and their pending deal with Fox, are in limbo.

LWIB, Barry Bloom reported that the Padres pending deal with Fox spans 20 years and is worth $1 billion. According to Bloom, the initial annual rights fee will be $30 million and by the end of the deal it will have climbed to $70 million. Bloom also reports that MLB is delaying approval of the deal over the aforementioned concerns as to how the signing bonus is invested. Bloom pegs the bonus amount at $200 million. What stands out in Bloom‘s piece is his reporting that the deal is being complicated by Moore’s desire to retain an interest in the new channel while simultaneously completing the sale of his remaining 51% stake in the Padres to Moorad.

Despite all this, it is expected that Fox Sports San Diego will broadcast the Padres Home Opener on April 5th.

SELECT READ MORE TO SEE THIS WEEK'S TIDBITS

Read more...
 
Last Week in Bizball: The RSN Windfall and MLB's Luxury Tax, Plus Tidbits PDF Print E-mail
User Rating: / 6
PoorBest 
Pete Toms Article Archive
Written by Pete Toms   
Tuesday, 14 February 2012 00:00

Last Week in Bizball by Pete Toms

This week in “Last Week in Bizball”, the RSN windfall and competitive balance, plus tidbits.

THE RSN WINDFALL AND COMPETITIVE BALANCE

Commissioner Selig often trumpets the healthy state of competitive balance in MLB. Amongst other facts, he would cite the 9 different World Series champions in the last 11 seasons. Commissioner Selig would also argue that, under his guidance, MLB has achieved greater competitive balance by narrowing the revenue gap separating the largest and smallest markets. This has been accomplished with increased sharing of local revenues and the Competitive Balance Tax (CBT), or as it’s more commonly know, the Luxury Tax. In the recently concluded CBA negotiations, Selig successfully bargained for the implementation of a soft cap, similar to the CBT, in the Rule 4 draft. As well, the new CBA provides greater incentive for clubs to keep big league payroll at, or below, the CBT threshold. Cynics argue that redistributing revenues and taxing “overspending” isn’t about competitive balance but rather limiting player compensation. Since 10, I’ve been blogging about The Importance of Regional Sports Networks in MLB. A few weeks ago I noted a very prominent sports media consultant’s prediction that the windfall of RSN money flowing to MLB will soon see industry revenues increase from $7 billion annually to $9 - $10 billion. So, the inevitable questions is, will this windfall of billions of dollars in RSN revenue work against MLB’s efforts to “level the playing field”?

Some believe that the impact on competitive balance of soaring local media rights will be negligible. After all, each team’s current deal will eventually be up for renewal, and when it is, each will benefit from the same factors driving up rights fees (competition amongst MSOs & telcos for live sports, plus threat of OTT alternatives) which exist in every market. For instance, LWIB Bob Nightengale reported that, “…even the San Diego Padres— playing in the 26th largest market in baseball — are, pending MLB approval, poised to sign a new deal with Fox Sports that will guarantee them $75 million a year for the next 20 years.” The Padres current deal with Cox reportedly earns them $15 million annually. (For more on the Padres new partnership with FSN, see here) But, while each team will eventually “cash in”, the value of an RSN, or a rights fee, is not based on viewers or ratings but on the number of subscribers. And the number of subscribers is determined by carriage deals and, perhaps more critically for MLB, market size. Again from Nightengale, "It does have the potential to hurt competitive balance," said White Sox chairman Jerry Reinsdorf, MLB's longest-tenured owner. "The big TV deals are basically a function of market-size and competition. There's no way that Kansas City can get a deal comparable to what the Angels did."

In recent years there has been talk about an “emerging middle class” in MLB. In December 10, Eric Fisher noted that during that calendar year, a record number 7 nine-figure player deals had been concluded (a number matched last year). Of those deals he wrote, “…nowhere in that list are the New York Yankees and Mets, Chicago Cubs or Los Angeles Dodgers — four clubs typically among the highest earners in MLB. That quartet of teams was involved in nine of the prior 19 $100 million-plus contracts. Just as in the standings this past season, and the San Francisco Giants-Texas Rangers World Series matchup, MLB’s economic middle class continues to grow more assertive.” If we assume that there is a growing middle class in MLB (I’m not so sure), is it largely due to the annual redistribution of approximately $400 million from big revenue to small revenue franchises? And, with local media revenues soaring, will MLB and the MLBPA need to be more vigilant in ensuring that those revenues are being reported and redistributed? You can read my previous posts for more details, but an ever increasing number of team owners also own stakes in RSNs, or the club itself has equity in an RSN. (Comcast initiated the trend of offering clubs equity in their RSNs and FSN has followed) In such relationships, there are, inevitably, lies, damn lies, and related party transactions. In other words, how much local media revenue is being underreported to both limit club’s exposure to revenue sharing and boost the profitability of their RSN investment? For instance, if the Padres are set to earn $75 million annually for their local TV rights, how much are the NYC teams taking in? SNY, the RSN controlled by Mets owners Sterling Equities, reportedly paid the Mets a $68 million rights fee last year. That will reportedly rise to $83 million by 15. Again, according to Nightengale’s report, “The Yankees say their TV rights are worth about $85 million to $90 million a year from YES, while the Red Sox insist their TV rights from NESN are worth less.” To state the obvious, if these reports are accurate, there are hundreds of millions of dollars that are not being accounted for in calculating revenue sharing payments.

Underreporting of local TV rights is nothing new in MLB. The sale of the Cubs to Tom Ricketts was reportedly delayed over a dispute of the value of the rights fee paid to the club by broadcaster WGN (both entities owned by Tribune Co. at the time). In 10, sports economist Andrew Zimbalist wrote, “In 2008, approximately $400 million was transferred from the high- to the low-revenue teams. The higher a team’s revenue, the more it has to contribute. The lower the revenue, the more it receives. The principal terrain of disputation is related party transactions, where team owners also own the regional sports network (RSN) that broadcasts the team’s games. It appears that several teams underreport the market value of the RSN revenue received by tens of millions of dollars and, in one case at least, this underreporting appears to exceed $100 million by a substantial margin.”

If indeed, MLB Teams are Media Companies, and you believe that revenue sharing contributes to competitive balance, how MLB calculates RSN revenues is about to become much more important and contentious. The MLBPA will also be closely scrutinizing the reporting of these revenues because underreporting obviously reduces the amount of money available to players.

SELECT READ MORE TO SEE THIS WEEK'S TIDBITS

Read more...
 
LWIB (Part II): Are the Wilpons and Katz Keeping the Mets? Plus Tidbits PDF Print E-mail
User Rating: / 33
PoorBest 
Pete Toms Article Archive
Written by Pete Toms   
Wednesday, 08 February 2012 12:14

Last Week in Bizball by Pete Toms

This week, a second edition of “Last Week in Bizball”. Can Wilpon and Katz keep the Mets?, plus the tidbits.

ARE WILPON AND KATZ KEEPING THE METS?

Where to start with the Mets woes? Irving Picard, representing the victims of Bernie Madoff, is attempting to extract close to $400 million from Mets owners Fred Wilpon and Saul Katz (aka Sterling Equities). The Mets operating losses over the past 2 seasons are reportedly $120 million. In November, the Mets arranged a bridge loan from BofA for $40 million. MLB also loaned the club $25 million and both are expected to be repaid next month. The baseball club and Sterling’s RSN, SNY, combined, have a reported $375 million coming due in a few years. Attendance and ticket prices at Citi Field have dropped dramatically the past few seasons. This upcoming season will see the Mets slash year-over-year payroll by $50 million plus and the team is expected to stink. They also folded a minor league team this off season. Last month it was reported that the Mets had retained the services of “turnaround specialists” CRG Partners. CRG was one of the key players in the bankruptcy auction of the Texas Rangers. David Einhorn agreed to invest $200 million in the Mets, but the deal collapsed. But, unlike with Tom Hicks and Frank McCourt, MLB hasn’t wrested the Mets away from Wilpon and Katz. Oh well, we cynics think, eventually being an FOB won’t be enough to save the Mets owners. They‘ll soon go bust and the creditors will take over.

But, LWIB there was buzz amongst sports industry insiders that Wilpon and Katz aren‘t leaving MLB any time soon. In this SportsMoney video segment, big time sports banker Sal Galatioto of GSP (no, not MMA) predicted that the many reports of the Mets “near bankruptcy” are “greatly exaggerated”. Galatioto foresees the Mets current efforts to raise $200 million via the sale of 10 minority shares in the team @ $20 million per succeeding. He also sees a lot of value in the Mets media rights. Sterling owns approximately 70% of the RSN (SNY) which broadcast Mets games. TWC and Comcast own the balance. The banker notes the guaranteed value of these cable rights deals, “...when you have a media deal, like a cable rights deal, you’re going to get paid, whatever your rights fee is whether the product is good or the product isn’t good.”

LWIB, Richard Sandomir reported in the New York Times that the Mets are close to finalizing the sale of the $200 million in minority shares. Richard confirms the earlier LA Times report that Steven Cohen (also bidding for the Dodgers) is set to become a Mets minority investor. But Richard’s scoop, and the more interesting development, is that the Mets aforementioned partners in SNY will invest $80 million in the baseball franchise. Howard Megdal explained that TWC and Comcast are motivated to help Sterling maintain control of the club for a few reasons. First, because Sterling owns both the team and a majority of SNY, the RSN lowballs the club’s rights fee, which is good for TWC and Comcast. And, if Sterling is forced to sell the team there is no guarantee SNY would continue to control the Mets local TV rights. Losing the Mets would make SNY worthless because they don’t own the rights to any other properties of significant value.

LWIB, Bill Madden wrote that the expected $2 billion sale price of the Dodgers will be a big help to the Mets owners. According to Bill’s unnamed “industry insider”, if the Dodgers are worth $2 billion, the Mets must be worth $3 billion. “What that means,” said the insider, “is that the Wilpons can now go back to their banks, point to the value of the team, and say: ‘Lend us more money.’”

SELECT READ MORE TO SEE THIS WEEK'S TIDBITS

Read more...
 
Page 1 of 25
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?