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.

Marlins clinch 1st playoff berth since 2003, beat Yanks 4-3

Brad Penner-USA TODAY Sports
5 Comments

NEW YORK — Forced from the field by COVID-19, the Miami Marlins returned with enough force to reach the playoffs for the first time since their 2003 championship.

An NL-worst 57-105 a year ago, they sealed the improbable berth on the field of the team that Miami CEO Derek Jeter and manager Don Mattingly once captained.

“I think this is a good lesson for everyone. It really goes back to the players believing,” Mattingly said Friday night after a 4-3, 10-inning win over the New York Yankees.

Miami will start the playoffs on the road Wednesday, its first postseason game since winning the 2003 World Series as the Florida Marlins, capped by a Game 6 victory in the Bronx over Jeter and his New York teammates at the previous version of Yankee Stadium.

“We play loose. We got nothing to lose. We’re playing with house money.,” said Brandon Kintzler, who got DJ LeMahieu to ground into a game-ending double play with the bases loaded after Jesus Aguilar hit a sacrifice fly in the top of the 10th. “We are a dangerous team. And we really don’t care if anyone says we’re overachievers.”

Miami (30-28), second behind Atlanta in the NL East, became the first team to make the playoffs in the year following a 100-loss season. The Marlins achieved the feat despite being beset by a virus outbreak early this season that prevented them from playing for more than a week.

After the final out, Marlins players ran onto the field, formed a line and exchanged non socially-distant hugs, then posed for photos across the mound.

“I can’t contain the tears, because it’s a lot of grind, a lot of passion,” shortstop Miguel Rojas said. “It wasn’t just the virus. Last year we lost 100 games. But we came out this year with the hope everything was going to be better. When we had the outbreak, the guys who got an opportunity to help the organization, thank you for everything you did.”

Miami was one of baseball’s great doubts at the start of the most shortened season since 1878, forced off the field when 18 players tested positive for COVID-19 following the opening series in Philadelphia.

“Yeah, we’ve been through a lot. Other teams have been through a lot, too,” Mattingly said “This just not a been a great situation. It’s just good to be able to put the game back on the map.”

New York (32-26) had already wrapped up a playoff spot but has lost five of six following a 10-game winning streak and is assured of starting the playoffs on the road. Toronto clinched a berth by beating the Yankees on Thursday.

“I don’t like any time somebody celebrates on our field or if we’re at somebody else’s place and they celebrate on their field,” Yankees star Aaron Judge said. “I’m seeing that too much.”

Mattingly captained the Yankees from 1991-95 and is in his fifth season managing the Marlins, Jeter captained the Yankees from 2003-14 as part of a career that included five World Series titles in 20 seasons and is part of the group headed by Bruce Sherman that bought the Marlins in October 2017.

Garrett Cooper, traded to the Marlins by the Yankees after the 2017 season, hit a three-run homer in the first inning off J.A. Happ.

After the Yankees tied it on Aaron Hicks‘ two-run double off Sandy Alcantara in the third and Judge’s RBI single off Yimi Garcia in the eighth following an error by the pitcher on a pickoff throw, the Marlins regained the lead with an unearned run in the 10th against Chad Green (3-3).

Jon Berti sacrificed pinch-runner Monte Harrison to third and, with the infield in, Starling Marte grounded to shortstop. Gleyber Torres ran at Harrison and threw to the plate, and catcher Kyle Higashioka‘s throw to third hit Harrison in the back, giving the Yankees a four-error night for the second time in three games.

With runners at second and third, Aguilar hit a sacrifice fly.

Brad Boxberger (1-0) walked his leadoff batter in the ninth but got Luke Voit to ground into a double play, and Kintzler held on for his 12th save in 14 chances.

Miami ended the second-longest postseason drought in the majors – the Seattle Mariners have been absent since 2001.

Miami returned Aug. 4 following an eight-day layoff with reinforcements from its alternate training site, the trade market and the waiver wire to replace the 18 players on the injured list and won its first five games.

“We’re just starting,” said Alcantara, who handed a 3-2 lead to his bullpen in the eighth. “We’ve got to keep doing what we’re doing.”

TOSSED

Yankees manager Aaron Boone was ejected for arguing from the dugout in the first inning. Plate umpire John Tumpane called out Judge on a full-count slider that appeared to drop well below the knees and Boone argued during the next pitch, to Hicks, then was ejected. Television microphones caught several of Boone’s profane shouts.

“Reacting to a terrible call and then following it up,” Boone said. “Obviously, we see Aaron get called a lot on some bad ones down.”

ODD

Pinch-runner Michael Tauchman stole second base in the eighth following a leadoff single by Gary Sanchez but was sent back to first because Tumpane interfered with the throw by catcher Chad Wallach. Clint Frazier struck out on the next pitch and snapped his bat over a leg.

SLOPPY

New York took the major league lead with 47 errors. Sanchez was called for catcher’s interference for the third time in five days and fourth time this month.

REMEMBERING

Mattingly thought of Jose Fernandez, the former Marlins All-Star pitcher who died four years earlier to the night at age 24 while piloting a boat that crashed. An investigation found he was legally drunk and had cocaine in his system. The night also marked the sixth anniversary of Jeter’s final game at Yankee Stadium.

UP NEXT

RHP Deivi Garcia (2-2, 4.88) starts Saturday for the Yankees and LHP Trevor Rogers (1-2, 6.84) for the Marlins. Garcia will be making the sixth start of his rookie season.