MLB can expect annual revenue to grow by more than $1B
in the next four years, according to Bill King in a
SPORTSBUSINESS JOURNAL cover story. But King writes that
"prosperity will only magnify the economic disparity that
already haunts the game's leaders" and will turn MLB's "long
standing financial king," the Yankees, into a "behemoth that
generates" $281M in annual revenue -- $70M more than its
nearest competitor, the Indians. King attributes the
revenue increase to "escalating" TV rights fees, the
"christening of eight new stadiums" and an "annual revenue
escalation of 5 percent, which is the industry standard that
teams and leagues present to creditors and investors." King
adds that the SPORTSBUSINESS JOURNAL study of MLB revenues
and the "direction in which they're moving" indicates MLB is
"headed for disparity on steroids." Padres President & CEO
Larry Lucchino said after reviewing the study, "So a gap
that's currently bad and unworkable will become worse and
more unworkable, unless there's some greater revenue sharing
or centralization of revenue sources" (SBJ, 1/10 issue).
CHAMPS SEE THE MONEY FLOW: BRIDGE NEWS' Jennifer Allen
reported that the Yankees' local TV rights "may double" in
value as a result of negotiations set to "start soon"
between the team and Cablevision. Pilson Communications
President Neal Pilson: "It might be worth $1 billion to
[Cablevision Chair Charles] Dolan over a long term to head
off the Yankees going to the competition." The team's
current 12-year, $493M deal with Cablevision expires after
the 2000 season (BRIDGE NEWS, 1/10).
