How Rising Sports Fees Imperil TV’s Business Model


How Rising Sports Fees Imperil TV’s Business Model

Here is an exceprt from a very interesting article:


There’s one baseball record that’s likely to be broken in the coming weeks, when no games are to be played.


News Corp.’s Fox Sports Net appears set to hit a new high mark for sports programming rights, paying an estimated $6 billion to $7 billion to air Los Angeles Dodgers Major League Baseball games on its L.A.- area regional sports networks for the next 25 years.


That deal, expected to be announced before year-end, could have even broader implications than just being the most money ever paid for a single sports team’s TV rights. To some, it could be the final straw that forces a fundamental change in TV distributors’ overall programming-cost structure.


The Dodger deal isn’t the only reason the industry’s eyes are focused on Los Angeles. In the past year, two other major long-term rights deals — for the National Basketball Association’s Los Angeles Lakers and baseball’s Los Angeles Angels of Anaheim — were struck, totalling another estimated $6 billion.

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Re: How Rising Sports Fees Imperil TV’s Business Model

And people wonder why ticket prices are so high to go to the games and why the channels are asking so much for carriage fees.

” Auto racing, bull fighting, and mountain climbing are the only real sports … all others are games.”- Ernest Hemingway
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