SBD/December 19, 2012/Media

Dodgers Reportedly Reach TV Deal With Fox That Includes Team-Branded RSN

Fox would reportedly pay the Dodgers a guaranteed dividend of $100M per year
Dodgers Owner Guggenheim Baseball Management has “reached a tentative deal on a new TV contract with Fox Sports that includes creation of a Dodgers-branded regional sports network that could be managed by Dick Clark Productions,” according to sources cited by Alex Ben Block of HOLLYWOOD REPORTER. However, the new contract “remains in limbo" as discussions between the Dodgers and MLB about revenue sharing for the estimated $6.1B the deal "will generate over the next 25 years." Sources said that under the deal the Dodgers and Fox have negotiated, the first $84.5M of TV licensing revenue is "subject to being shared with the league.” That cut is “spread among all teams to help supplement small-city teams that do not have as big a media market to tap.” Block cited a Forbes report as showing that “one possible scenario would have the Dodgers and Fox joining together to create the regional sports network.” In this scenario, Fox would “handle the money (ad sales) and pay the team the $84 million annual rights fee, plus the annual increases, but would also pay a guaranteed dividend of $100 million a year.” Sources said that it is that bonus payment that the Dodgers and MLB "are at odds over.” Block reported Dick Clark Productions is "being discussed as production partner following the September acquisition of the company by another affiliate of Guggenheim Partners.” Once a deal is done, Fox also will have to "work out agreements with regional cable systems and national satellite providers, which will be asked to pay a subscriber fee for the rights” (HOLLYWOODREPORTER.com, 12/18).
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