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MLB Creates Economic Group As Local TV Broadcasters Face Bankruptcy

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NEW YORK — Concerned about possible bankruptcy of the company that owns the local broadcasting rights to 14 of the 30 Major League Baseball teams, the league formed a new economic inquiry committee to meet next week in Palm Beach, Fla. We are going to meet at the owners meeting. .

The committee’s existence was revealed to the Associated Press by a person familiar with the plan.

The commission will also examine earnings disparities among MLB teams.

Los Angeles Dodgers president Mark Walter and Detroit Tigers president Chris Illich are members of the committee, sources said.

Baseball executives should be prepared in recent weeks if rights payments aren’t made by Diamond Sports Group, a subsidiary of Sinclair Broadcast Group, which operates the network under the Bally Sports name, Sports said. Networks have lost subscribers and revenue due to cord cuts in recent years.

Diamond owns the broadcasting rights to the Arizona Diamondbacks, Atlanta Braves, Cincinnati Reds, Cleveland Guardians, Detroit Tigers, Kansas City Royals, Los Angeles Angels, Miami Marlins, Milwaukee Brewers, Minnesota Twins, St. Louis Cardinals, San Diego Padres and Tampa. I’m here. Bay Rays and Texas Rangers.

Marquee Sports Network, co-owned by the Cubs and Sinclair, will not be affected by Diamond’s declaration of bankruptcy.

Billy Chambers, who was Sinclair’s chief financial officer, started working for MLB this week as executive vice president of local media.

The Walt Disney Company acquired 21st Century Fox in March 2019, acquiring a regional sports network.

In August, Sinclair announced it had acquired 21 regional sports networks and Fox College Sports from Disney, valuing those assets at $10.6 billion.

At that time, Disney sold its stake acquired from Fox in the Yankees’ YES network to a newly formed group of investors that included Yankee Global Enterprises and Sinclair. Enterprise value of $3.47 billion.

Sinclair also holds rights to many NBA and NHL teams.

Salaries have risen this offseason following last year’s agreement with the players union on a five-year labor contract. Also, last year’s payrolls increased by 12.6% to his $4.56 billion, breaking the previous record set in 2017 and is expected to rise further this year. Entering his third season under owner Steve Cohen, New York his Mets now project a salary of around $370 million.

MLB’s latest commission of inquiry tracks the pair over the past quarter century. One, a joint management union committee that began after the 1990 lockout, recommended in 1992 to abolish salary arbitration and allow players to qualify for free agency after three years instead of six. I rejected the management’s proposal for a salary cap.

The other was a committee held in 1999 and 2000 that recommended a luxury tax rate hike, shared 40% to 50% of local revenue after deducting ballpark costs, and attended meetings. Proposed an uneven distribution of new national broadcast, license and Internet revenues to help low-income clubs. minimum wage.


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Written by Natalia Chi

Chicago Popular; Chicago breaking news, weather and live video. Covering local politics, health, traffic and sports for Chicago, the suburbs and northwest Indiana.

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