Analysis

TV Contracts — The Next Frontier of Revenue

TV Contracts — The Next Frontier of Revenue

Over on the main site, I did an article in December about what the potential value of Pittsburgh's local TV contract could be, since it is undisclosed.  I came to the conclusion by using other known TV contracts that the Pirates' deal could be worth $16.5M to $23.5M per season to them.

Joel Sherman of the NY Post had an article a few days ago discussing how TV contracts are escalating at a geometric rate and causing new "superpowers" to develop on the baseball landscape.  With their new deals, the Los Angeles Angels and Texas Rangers are now considered to be on par with the Yankees and Red Sox.  Once the Dodgers' ownership is solidified, it is expected that their new TV deal will be gargantuan as well, vaulting them into the same stratosphere.

All of that was fine and dandy with my reckoning.  And then came word yesterday that the San Diego Padres are on the verge of signing a new deal.  Their old deal was worth approximately $15M/year, but now that the Padres have a 20% ownership st...

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