Bill Shaikin has a report up today that, while dealing with the often murky and confusing world of TV revenue and media rights, suggests that the big settlement of the litigation between Frank McCourt and Major League Baseball, the new Dodgers owners have benefits no other team has. Specifically: to hold back media money from revenue sharing that no other team would get to hold on to.
The Dodgers’ new owners could reap hundreds of millions of dollars in benefits from the confidential terms of a U.S. Bankruptcy Court settlement between former owner Frank McCourt and Major League Baseball …
Guggenheim Baseball, the Dodgers’ new owners, can negotiate a new television contract as soon as this fall, with Fox Sports, Time Warner Cable and perhaps CBS expected to bid. If the Dodgers accept an annual rights fee, they would simply pay 34% of whatever money they receive into the revenue-sharing pool.
However, the Dodgers are expected to pursue a regional sports network, on their own or in partnership with Fox, TWC or another television outlet. Guggenheim could establish a media company separate from the Dodgers, then have the company pay the team in accordance with the proposed Fox contract and keep the remaining revenue.
The difference here between what the Dodgers are doing on the one hand, and what the Yankees do with YES or the Red Sox do with NESN, is that 34%. In their cases, they pay that 34% of media rights fees — plus a surcharge if the team is getting lowballed by its sister regional sports network. With the Dodgers, their new Fox deal is charged at 34%, but even if a new Dodgers cable network pays them tens of millions more a year, and that money is not touched by MLB.
Shaikin suspects that this will cause some tensions within the ownership ranks, as the Dodgers — by virtue of litigation with an irresponsible former member of their ranks — got something they didn’t. Worth watching.
Terrible, terrible news: Christian Moreno of ESPN reports that Royals pitcher Yordano Ventura has been killed in an automobile accident in the Dominican Republic. His death has been confirmed by police. He was only 25 years-old. There are as of yet no details about the accident.
Ventura was a four-year veteran, having debuted in 2013 but truly bursting onto the scene for the Royals in 2014. That year he went 14-10 with a 3.20 ERA in 183 innings, ascending to the national stage along with the entire Royals team with some key performances in that year’s ALDS and World Series. The following year Ventura won 13 games for the World Champion Royals and again appeared in the playoffs and World Series.
Ventura was often in the middle of controversy — he found himself in several controversies arising out of his habit of hitting and brushing back hitters — but he was an undeniably electric young talent who was poised to anchor the Royals rotation for years to come. His loss, like that of Jose Fernandez just this past September, is incalculable to both his team, his fans and to Major League Baseball as a whole.
Our thoughts go out to his family, his friends, his teammates and his fans.
Free agent right-hander Tim Lincecum isn’t ready to hang up his cleats just yet. At least, that’s the word from Lincecum’s agent, Rick Thurman, who says the 32-year-old is still “throwing and getting ready for the season” (via Andrew Baggarly of the San Jose Mercury News).
Lincecum may not be ready to enter retirement, but another quote from Thurman suggests that he’ll be picky about where he pitches next. He doesn’t appear open to pitching overseas, and despite not having a contract for 2017 (or even any serious suitors), the right-hander is set on pitching in the big leagues this year. Whether or not he’s willing to take a bullpen role to do so remains to be seen.
While Baggarly predicts some interest in the veteran righty, there’s not much in Lincecum’s recent history to inspire faith in him as a starter, or even a reliever. He picked up a one-year, $2.5 million contract with the Angels following his hip surgery in 2015, and went 2-6 in 2016 with a 9.16 ERA, 5.4 BB/9 and 7.5 SO/9 over 38 1/3 innings. At this point, a minor league contract seems like the surest path back to major league success, though he’s unlikely to find an open spot on the Giants’ or Angels’ rosters anytime soon.