They can’t formally begin talks until Oct. 15, but Fox Sports and the Los Angeles Dodgers are said to have started preliminary discussions on a new cable pact. Last year, Fox and former Dodgers owner Frank McCourt struck a 20-year, $3B deal that included a provision giving the Dodgers 30% of the Fox Sports channel. But, Baseball Commissioner Bud Selig did not allow that pact to proceed. Citing a source familiar with the current talks, Reuters reports the renewal being discussed since May would “almost certainly exceed” the kiboshed deal and include joint ownership of English and Spanish language channels. According to the Reuters source, no financials have been discussed, but sports consultant Marc Ganis said the new deal could cost $4B or more. Fox and the Dodgers’ current deal expires at the end of next year.
The Dodgers have been spending big on players recently and the talks are thought to be part of the equation. Ganis told Reuters that Stan Kasten, one of the team’s new owners, “is one of the smartest guys in sports. He wanted to make sure he had a long-term TV commitment in the billions before he went out to make those deals.” Fox has a six-week exclusivity window that starts Oct. 15, but should the parties fail to come to an agreement, Time Warner Cable could step in. In June, it was reported the cable giant was eyeing the Dodgers rights to add to its new So. Cal. regional sports networks that launch Oct. 1. “We are hopeful that we will have an opportunity to speak with the new ownership,” TWC Sports president David Rone told Sports Business Daily at the time. The Dodgers were purchased by a consortium in March for $2.15B, a record price for a U.S. sports franchise, and much of the team’s value is wrapped up in the next TV rights deal.

FOX AND DODGERS? No thanks…these are people who traded Piazza, loaned McCourt $$ behind the back of MLB and have News Shows rated last in truth telling…I’d pass and create my own network..
2.15 billion for the team is going to look like a bargain after the tv rights are sold.
Completely explains why the Dodgers were willing to take on $261 million in contracts over the weekend.
Does this qualify at confirmation Frank McCourt was undercutting the team in exchange for upfront money when he was willing to take $2 billion for the same term?
The new owners are smart folks although 2.15 billion for the team seemed to all to be rather high. In order to get a return on their money, the new owners are spending lots more to build a solid franchise to get them into contention and begin to bring fans back to the stadium.
So, this all makes sense as this story indicates another billion has been added to the cable broadcast rights possible package.
The results will be greatly influenced by the team’s performance and the fans returning.
I have to give credit to the new owners for taking a risk at this level, and I hope it pays off for all.
Wonderful news for teams in cities like KC, Pittsburgh, Cleveland, Cincy and the like. What a brilliant non-level playing field. Salaries with absolutely no ceiling, no parity whatsoever, no real chance for most teams to earn a profit, and virtually no chance for a smaller market team to make the playoffs, let alone win a World Series. Welcome to baseball…the most dysfunctional, poorly-run sport in history.
The Dodgers are finally acting like a large market team. It’s becoming enjoyable to watch again.