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.

Brewers reliever Josh Hader in hot water over racist, homophobic tweets from 2011-12

Getty Images
22 Comments

Brewers reliever Josh Hader didn’t have a good night. He gave up four hits and a three-run homer to put the National League in a big hole in the All-Star Game. That’s the kind of thing that has to stick with you.

Oh, and he was also revealed to be a SUPER BIG racist, misogynist and homophobe. That’s gonna stick with him too, and may land him in trouble with Major League Baseball.

Someone decided to dig through Hader’s Twitter history this evening and when they did they found some ugly, ugly stuff in there from back in 2011-12.* Hader was found to have used the n-word, liberally. He said “I hate gay people.” He said some super misogynistic stuff about wanting a woman who will cook and clean for him, among other pretty damn vile things. There were multiple references to cocaine. He said “I’ll murder your family” to one person and made some total non-sequitur tweet simply saying “KKK.” You name a social media etiquette line that one can cross and Hader not only crossed it, but he totally and gleefully trampled over. If you want to see that vile stuff you can see it over at The Big Lead, which screen-capped it. I presume Hader has deleted them by now.

The news of Hader’s old, unearthed tweets bubbled out as the All-Star Game was going on, and reporters met Hader in the locker room right afterward for comment. Hader owned up to them — there was no “I was hacked” excuses offered here — saying that the tweets were a sign of immaturity when he was 17 years-old. He said he plans to apologize to his teammates, saying they don’t reflect on him as a person now. His quote: “No excuses. I was dumb and stupid.” Which, well, yes, obviously.

That may not be the end of it, however:

These tweets are old, Hader may be a different person now and people can do a lot of growing up between 17 and 24. But Major League Baseball is not happy tonight, I can assure you, that an ugly social media incident blew up during its biggest showcase of the regular season.

Will Hader be disciplined? Hard to say, given that Hader wasn’t even drafted yet when those tweets were made and given that MLB’s social media policy was not even in place then. But it would not shock me at all if more comes of this than Hader merely apologizing to his teammates. Stay tuned.

*There are several putative Hader tweets floating around Twitter right now of a more recent vintage. Hader has locked his account, however, and they cannot be confirmed, and many people who were able to access his account before it was locked said those tweets were not there before, with the suggestion that they were Photoshopped. We are neither in the position to — nor do we have the inclination to — verify which of Hader’s tweets are legitimate and which are fabricated. We know, however, that there is more than ample, awful stuff that he has owned up to and we’ll leave it at that for now.