Could the Dodgers’ giant TV deal be the beginning of the end for giant TV deals?

57 Comments

We talk a lot about the skyrocketing TV deals baseball teams are getting from cable operators these days. One wonders, though, whether or not we’re witnessing a bubble that’s going to soon burst. If it does, we may look at the Dodgers’ new TV deal as the beginning of the end.

The Dodgers TV deal with Time Warner is reported to be upwards of $8 billion. To pay for that, Time Warner is going to charge other carriers (Direct TV, Dish Network, other cable systems) $4 or $5 per subscriber for the right to carry the new Los Angeles Dodgers network they’re operating, with those costs passed on to the other carriers’ customers. This is how all sports TV rights deals go. It’s just way bigger with the Dodgers and Time Warner.

Many — probably most — of the customers who are seeing their cable bill go up are not Dodgers fans. They just want to watch Nick Jr. or History Channel or BBC America or any number of other channels. But, because you can’t (for the most part anyway) pick and choose which channels you get, the non-sports watchers are helping subsidize the sports watchers. Again, this is how it always works, but this time the rate hikes in question are going to be quite large.

Joe Flint and Bill Shaikin of the L.A. Times write about this today, and they talk to one former TV executive who thinks that such a pattern is unsustainable:

But non-sports fans and pay TV companies are increasingly frustrated at having to pick up the tab for big sports deals. There have been calls to sell sports channels “a la carte,” or separately from other programming.

The Dodger agreement with Time Warner Cable may be a tipping point.

“That is the solution everyone should be looking at seriously,” said Derek Chang, a former senior executive at satellite broadcaster DirecTV. Such a move, he added, may be the only way to lower the cost of TV sports. “Ultimately the market for fees would then reset.”

All it takes is a political groundswell — and someone talking about how we should think of the children who just want to watch “Spongebob” is a great way to get that going — for Congress to wade in and either begin legislating or begin threatening to legislate with respect to cable TV in such a way that a la carte pricing becomes available.  If it does, companies in Time Warner’s position won’t be able to demand across-the-board rights fees like they are now and, in turn, they won’t be able to offer sports teams like the Dodgers the billions of dollars in rights fees like they’re currently doing.

If that bubble bursts, down with it comes the TV money. Then down go the franchise values, which are escalating due to the TV money sports teams are attracting. If team values go down, team payrolls will eventually come down too.  No aspect of baseball finances would be untouched by it.

Will it happen? I don’t know. And if it does, I don’t know when. But I also know that no bubble in history has ever failed to burst, and that when they do burst, the bubbles tend to take down just about everyone.

And That Happened: Monday’s Scores and Highlights

Getty Images
Leave a comment

Here are the scores. Here are the highlights:

Indians 15, Rangers 9: The Rangers took a 4-0 lead after one, a 7-1 lead after two and had a 9-2 lead heading into the bottom of the fourth before the Indians decided to wake up and score 13 unanswered runs. Francisco Lindor, Lonnie Chisenhall and Carlos Santana each had three RBI as the Indians scored a run in the fourth, four in the fifth, five in the sixth and added three in the seventh. Cleveland set their season high in runs and tied their season best with 19 hits. Every starter except Kipnis had at least two hits. They also regained first place in the central because . . .

Red Sox 4, Twins 1: Chris Sale outpitched Jose Berrios, allowing one run and striking out nine while working into the seventh inning. The Sox got to Berrios early with two in the first, including a Mitch Moreland homer. It was his third straight game with a dong.

Cubs 5, Nationals 4: It was only a 2-0 game heading into the ninth when the Cubs piled on three insurance runs. They needed all of the insurance as the Nats scored four in the bottom half. Close —Wade Davis had to struck out Ryan Zimmerman with runners on second and third to end the game — but no cigar. Willson Contreras hit a leadoff homer. Catchers don’t lead off that much. Jason Kendall used to do it a lot. Kurt Suzuki and John Jaso have. I feel like Russell Martin did a fair amount. But it’s not common. You could probably take all of the catchers who have batted leadoff more than ten times a year in the past 25 years, put them in a Volkswagon Vanagon with the Westphalia camper mod and still have a lot of room leftover for bikes and stuff.

Diamondbacks 6, Phillies 1: Zack Greinke wasn’t efficient — he needed 102 pitches to make it through five innings — but the Phillies got bubkis off of him regardless. Left fielder Chris Herrmann homered and walked with the bases loaded to drive in two. Daniel Delscalso drove in three with a pair of RBI singles.

Cardinals 8, Reds 2: Randal Grichuk homered for the second straight game. He had been in the minors until this past Sunday, spending about a month down there after being demoted for poor play. In his two games since coming back up he’s 4-for-10 with two homers and four RBI. Jedd Gyorko homered too. Michael Wacha, who has been terrible recently, allowed only one run on five hits in six innings. The Reds bein’ kinda interesting and frisky seems like a million years ago.

Yankees 6, White Sox 5: The Yankees had a 6-1 lead heading into the bottom of the ninth. They held on to win, but the Sox made it interesting, scoring four runs off of Chasen Shreve — who gave up a three-run shot to Tim Anderson — and Aroldis Chapman, who gave up an RBI double. Tyler Austin homered and the bottom third of the Yankees order — Chase Headley, Austin Romine and Ronald Torreyes — each knocked in a run.

Giants 9, Rockies 2: San Francisco snaps a five-game skid overall and a nine-game skid against the Rockies as Jeff Samardzija struck out five and worked into into the seventh. Buster Posey hit an RBI double. Brandon Belt and Denard Span each hit RBI triples. Colorado now, just recently the talk of the league, has dropped six straight. They’ve been outscored 57-17 in those losses.

Angels 4, Dodgers 0: Another skid was snapped: the Dodgers’ ten-game winning streak. Doing the snapping was Ricky Nolasco, who snapped a winless streak of ten starts. Nolasco shut out the Dodgers into the seventh inning, only to be knocked out by a comebacker that hit his shin. He’s fine. For the Dodgers, the silver lining here was that Rich Hill pitched seven innings. He lost, but it was the first time he made past five innings all year.

Rockies acquire Zac Rosscup from Cubs

Patrick Gorski/Icon Sportswire/Corbis via Getty Images
2 Comments

The Rockies announced a minor swap of relief pitchers on Monday evening. The Cubs sent lefty Zac Rosscup to the Rockies in exchange for right-hander Matt Carasiti.

Rosscup, 29, was designated for assignment by the Cubs last Thursday. He spent only two-thirds of an inning in the majors this year and has a 5.32 career ERA across 47 1/3 innings. Rosscup has spent most of the season with Triple-A Iowa, posting a 2.60 ERA in 27 2/3 innings.

Carasiti, 25, spent 15 2/3 innings in the majors last year, putting up an ugly 9.19 ERA. With Triple-A Albuquerque this season, he compiled a 2.37 ERA and a 43/13 K/BB ratio in 30 1/3 innings.