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


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.

Report: Ben Zobrist’s price tag is currently four years, $60 million

Ben Zobrist
AP Photo/Charlie Riedel
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Ben Zobrist will turn 35 years old early next summer, but that doesn’t seem to be putting too much of a dent in his free agent value.

According to Jeff Passan of Yahoo Sports, the “sense among interested teams” is that Zobrist’s price is currently hovering around four years, $60 million and it “may go higher.”

There was a report from FOX Sports’ Ken Rosenthal on Sunday stating that the Mets have made Zobrist their “No. 1” offseason target, and over a dozen other clubs have linked to him since the World Series ended. That’s the kind of attention you command when you can both hit — Zobrist posted an .809 OPS (120 OPS+) in 2015 — and also cover a range of positions defensively.

He makes sense for just about any club looking to contend in the coming seasons.

Wilin Rosario elects to become free agent

Wilin Rosario
AP Photo/Lenny Ignelzi
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Wilin Rosario was designated for assignment by the Rockies late last month. Now, according to Thomas Harding of MLB.com, the 26-year-old former National League Rookie of the Year vote-getter has elected to become a free agent.

Rosario is a bad defensive catcher and wasn’t much better when the Rockies tried him at first base, but he should draw some interest from American League teams looking for a bench bat and part-time DH.

Rosario slugged 28 home runs for the Rockies in 2012 and he’s averaged 26 home runs for every 162 games over the course of his five-year major league career.

He boasts a .319/.356/.604 career batting line against left-handed pitching.

Orioles acquire Mark Trumbo from Mariners for Steve Clevenger

Mark Trumbo
AP Photo/Joe Nicholson

As first reported by Bob Dutton of the Tacoma Tribune and now confirmed by CBS Sports’ Jon Heyman, the Mariners have traded first baseman and corner outfielder Mark Trumbo to the Orioles in exchange for catcher and first baseman Steve Clevenger. There is also a second player headed to Baltimore in the deal.

This feels like an admission from the O’s that they’re not going to be able to re-sign Chris Davis, who is said to be looking for more than $150 million in free agency.

Clevenger was out of options and the Orioles have both Matt Wieters and Caleb Joseph coming back at the catcher position. Wieters was due to become a free agent but accepted a one-year, $15.8 million qualifying offer from Baltimore last month.

Trumbo has always been a low-OBP guy and he rates as a poor defender everywhere he has played, but the 29-year-old has averaged 31 homers and 96 RBI for every 162 games in his six-year major league career. Camden Yards is a much better place than Safeco Field for him to show that power.

Cardinals finished runner-up to Red Sox in David Price sweepstakes

David Price
AP Photo/Orlin Wagner

These kind of after-the-ink-has-dried reports have to be taken with a grain of salt for a variety of reasons, but they’re fantastic conversation-starters …

Bob Nightengale of USA Today says the Cardinals “finished runner-up” to the Red Sox in the bidding for free agent left-hander David Price, who signed with Boston on Monday for a record seven years and $217 million.

There were reports early on that the Red Sox were going to have to overpay on Price because he wanted to either stay in Toronto or make the move to the more pitcher-friendly National League. And maybe they did go significantly above and beyond the next-best offer to land him.

But the report from Nightengale serves as an indication that the Cardinals are ready and willing to spend big money ahead of next week’s Winter Meetings in Nashville. Does that chunk of change now get directed toward Jason Heyward? Or might the Cardinals pounce one of the falling dominos in this still-loaded starting pitching market? What about both?

St. Louis lost Lance Lynn to Tommy John surgery last month and both Carlos Martinez and Michael Wacha carry some injury concerns into 2016. There’s money to spend there with a new billion-dollar local television deal about ready to kick in.