FanShot

The Dodgers’ new owners could reap hundreds of millions of dollars in benefits from the...

16

The Dodgers’ new owners could reap hundreds of millions of dollars in benefits from the confidential terms of a U.S. Bankruptcy Court settlement between former owner Frank McCourt and Major League Baseball. The terms can be enforced for up to 40 years, with final authority over distribution of the Dodgers’ television revenue granted to the court rather than to MLB, according to two people familiar with the sale process but not authorized to discuss it. As a result, the Dodgers’ new owners could retain millions each year that otherwise would be shared with other teams. ... McCourt took the Dodgers into bankruptcy last year, after Selig rejected a proposed television contract with Fox Sports. That contract called for the Dodgers to receive a minority ownership stake in Prime Ticket and annual rights fees starting at $84 million, with an annual increase of 4%. The league takes 34% of each team's television revenue and distributes it to other teams via revenue sharing. The league can assess an additional charge if it determines a team-owned television outlet is paying an annual rights fee under fair market value. Under the confidential terms of the settlement with McCourt, the league agreed that the annual rights fees in the proposed Fox contract represented fair market value, according to three people familiar with the sale agreement. Guggenheim Baseball, the Dodgers’ new owners, can negotiate a new television contract as soon as this fall, with Fox Sports, Time Warner Cable and perhaps CBS expected to bid. If the Dodgers accept an annual rights fee, they would simply pay 34% of whatever money they receive into the revenue-sharing pool. However, the Dodgers are expected to pursue a regional sports network, on their own or in partnership with Fox, TWC or another television outlet. Guggenheim could establish a media company separate from the Dodgers, then have the company pay the team in accordance with the proposed Fox contract and keep the remaining revenue. The difference could be tens of millions each year, according to media analysts.

Bill Shaikin, Los Angeles Times
X
Log In Sign Up

forgot?
Log In Sign Up

Please choose a new SB Nation username and password

As part of the new SB Nation launch, prior users will need to choose a permanent username, along with a new password.

Your username will be used to login to SB Nation going forward.

I already have a Vox Media account!

Verify Vox Media account

Please login to your Vox Media account. This account will be linked to your previously existing Eater account.

Please choose a new SB Nation username and password

As part of the new SB Nation launch, prior MT authors will need to choose a new username and password.

Your username will be used to login to SB Nation going forward.

Forgot password?

We'll email you a reset link.

If you signed up using a 3rd party account like Facebook or Twitter, please login with it instead.

Forgot password?

Try another email?

Almost done,

By becoming a registered user, you are also agreeing to our Terms and confirming that you have read our Privacy Policy.

Join Sactown Royalty

You must be a member of Sactown Royalty to participate.

We have our own Community Guidelines at Sactown Royalty. You should read them.

Join Sactown Royalty

You must be a member of Sactown Royalty to participate.

We have our own Community Guidelines at Sactown Royalty. You should read them.

Spinner.vc97ec6e

Authenticating

Great!

Choose an available username to complete sign up.

In order to provide our users with a better overall experience, we ask for more information from Facebook when using it to login so that we can learn more about our audience and provide you with the best possible experience. We do not store specific user data and the sharing of it is not required to login with Facebook.

tracking_pixel_9347_tracker