MLB "is expected to exact huge increases" in its TV
rights fees when its contracts with Fox and NBC come up for
renewal over the next several months, according to Steve
McClellan in BROADCASTING & CABLE's annual Special Report on
MLB's TV rights. Sources say that MLB "thinks it can get at
least double what it is currently getting" from Fox and NBC,
and McClellan writes that "several factors suggest" MLB will
"come close to getting what it wants." Those factors
include interest from CBS and, "to a lesser extent," ABC, as
well as ESPN's recent renewal of its MLB cable rights
package, which saw ESPN's annual payments increase from $43M
in '99 to $175M by 2003. Another factor is the fact that
both Fox and NBC "have been pleased, overall" with their MLB
packages and both "want to renew." Sources note that
"neither Fox nor NBC is getting rich" with their respective
baseball pacts, but "neither are they losing money," with
one source estimating each "make an operating profit of less
than" $10M a year on the packages. Fox currently pays an
average of $115M a year for its MLB contract, while NBC
currently pays an average $95M a year (B&C, 3/27).
GOING REGIONAL: In a sidebar, B&C's Kim McAvoy writes
that Fox Sports Net (FSN) is "aggressively acquiring" local
MLB cable and over-the-air rights in an effort "that appears
to be succeeding." Nearly half of MLB teams "have sold both
over-the-air and cable games to either Fox or its
affiliates," representing an estimated $189.4M in fees this
season. FSN Exec VP & COO Bob Thompson said that FSN's
decision to acquire a team's local rights is "made on a
case-by-case basis." McAvoy writes that with FSN's recent
acquisition of local rights for the Rangers and Cardinals,
there is "little doubt" that FSN's total of 21 RSNs "will
dominate the local baseball scene" (B&C, 3/27 issue).
