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Local television may be the key to the Rockies Championship, in 2014

 

In recent news Bud Selig’s dismissal of the Dodgers proposed television bailout and the resulting bankruptcy filed by owner Frank McCourt leads to an interesting look at the value of local television deals and how the Rockies rank in their own deal.

 

Alannapool1_medium [Is Alanna Rizzo and Root Sports the secret to the Rockies success?]

 

 

One has to wonder why Bud Selig would reject a reported $3 billion deal which would have made the Dodgers the highest paid baseball team when it comes to TV agreements. The faint whispers coming out of the Dodgers rejected agreement with Fox sounds similar to the deal originally reported between the Rangers and Fox last year. Original reports claiming 20 years and $3 billion were later trimmed down to $1.5 billion over 20 years. The Rangers will benefit by an annual revenue stream of nearly $80 million during their agreement.

If reports about the Dodgers deal are true LA will gain to receive over $150 million annually. Compare those agreements with Rockies current deal valued at $20 million per year, the Monforts can barely afford two Aaron Cooks compared to the McCourt’s buying 3 A-Rod’s, 2 Teixeira's and 7 divorce attorneys. 

Star-divide

 

Want to know how the other half lives? Look at the New York Yankees who receive $80 million from YES network to broadcast up to 141 games, AND THEN, earn another $13 million from local station My9 to air the remaining 21 games. No wonder they can afford to pay (insert overpaid overhyped player’s name here __________).

Remember the good old days when ticket and hot dog sales determine payroll for a team? Well old-timer they still do, but now there’s another form of revenue and that doesn’t include money from MLB’s Advanced Media. In 2004 the cash strapped Rockies sold a 15% interest in the team to Rupert Murdock’s Fox Sports for $20 million and then signed a 10 year $200 million dollar television deal.

Yankeesmillionscopy_medium

The good news for Rockies

 fans is the deal ends in 2014 and the value of local television contracts has risen significantly. Not only are the value of local deals on the rise, but FSRM (now known as Root) has a rival network ready to compete for the rights to broadcast Rockies games. Altitude sports was still in its infancy of negotiations with Comcast when the Monforts cashed Rupert’s first check. The Avalanche and Nuggets affiliate are sure to covet a summer full of programming to attract additional viewers.

Think the extensions signed by CarGo and Tulo were the result of recent playoff runs? The truth is the Rockies Front Office was most likely expecting a huge payoff in local television dollar. Denver is the 10th ranked television market in the US which would put the Rockies projected value somewhere near the Washington Nationals agreement at $28 million, however the Nationals deal was signed way back in 2005.

The state of current deals and the Rockies recent success, and the presence of competing network Altitude Sports could push the value of the deal well over rival San Francisco Giants $30 million annual agreement. What do you think the Rockies could afford with the money from it’s new TV deal?

Poll
What could the Rockies afford with the money from a new TV deal?
An Ace, because we never have enough pitching
12 votes
A Unicorn
3 votes
Albert Pujols to play third base
16 votes
Sculpt a statue of Todd Helton out of a 14,000 foot mountain
32 votes

63 votes | Poll has closed

Eat. Drink. Be Merry. But the above FanPost does not necessarily reflect the attitudes, opinions, or views of Purple Row's staff (unless, of course, it's written by the staff [and even then, it still might not]).

Comment 26 comments  |  3 recs  | 

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This is a great post, Charlie,

and a subject that is well worth keeping an eye on over the next few years. Also, a 14,000-foot sculpture of Todd Helton is what EVERYBODY wants, right?

Just an average guy with exceptional hair. Nothing more, nothing less.
Bear Naked - My thoughts on sports, music, and life.

by Bryan Kilpatrick on Jun 28, 2011 7:22 AM MDT reply actions  

We need our own version of Mt. Rushmore

Elway, Helton, Roy, and ????

Hey Baseball Gods. FINE!!! IT HURTS!!! I HAVE SACRIFICED ALL MY TACOS TO YOU!!! WHAT MORE DO YOU WANT!!!!

by Thnikkaman on Jun 28, 2011 7:52 AM MDT up reply actions  

Mahmoud Abdul-Rauf.

Just an average guy with exceptional hair. Nothing more, nothing less.
Bear Naked - My thoughts on sports, music, and life.

by Bryan Kilpatrick on Jun 28, 2011 8:02 AM MDT up reply actions  

Not if they're playing the National Anthem at the unveiling...

"Your classless organization in your unholy city accused our Team of an unspeakable act. It was baseless, the Giants are classless, and I have no sympathy for your eternal damnation."

by RdRnnr on Jun 28, 2011 10:12 AM MDT up reply actions  

Put Issel next to Elway

The Horse and Old Horse-face

"Your classless organization in your unholy city accused our Team of an unspeakable act. It was baseless, the Giants are classless, and I have no sympathy for your eternal damnation."

by RdRnnr on Jun 28, 2011 10:12 AM MDT up reply actions  

Chauncey Billups!

We're trying to win a (#)(*@$%#)@#&$#)^ argument here!!!!

In line for seats at the Grand Junction Rockies 2012 home opener

by Junction Rox on Jun 29, 2011 11:10 AM MDT up reply actions  

: (

I'm gonna change my sig because the last time I did, we had a little winning streak. Then I changed it back, and we started losing again. It's the least I can do.

by prettyinpurple on Jun 29, 2011 11:43 AM MDT up reply actions  

Argh! I can’t get the caption to align under the picture. I’ve tried using div code and table code. It looks good in the preview, but disappears when I post it.

by Charlie77 on Jun 28, 2011 10:56 AM MDT reply actions  

The whole Dodger situation is pretty interesting..

Frank McCourt doesn’t have enough money to make payroll on June 30th and Jamie can’t afford her mortgage on the $150,000/month settlement Frank offered.

If the commissioner had allowed the new television deal the McCourt’s would have received $174 million for personal use.

by Charlie77 on Jun 28, 2011 11:18 AM MDT reply actions  

I loved Roy

but if the Avs get a representative on the Denver sports Mt Rushmore, I want it to be Lemieux, just to annoy Detroit fans.

by matthew823 on Jun 28, 2011 11:41 AM MDT reply actions  

Joe Sakic would like a word

"I think I speak for everyone in here when I say: It''s playoffs or bust"- Jason Hammel : Feared Slugger
BigGiantHead of the Ubaldo Lover's Club;OG Thugget Loyalist #4, QPU Emeritus, Proud member PR Gynocracy

by SDcat09 on Jun 28, 2011 1:33 PM MDT up reply actions  

Ray Bourque!

"I think I speak for everyone in here when I say: It''s playoffs or bust"- Jason Hammel : Feared Slugger
BigGiantHead of the Ubaldo Lover's Club;OG Thugget Loyalist #4, QPU Emeritus, Proud member PR Gynocracy

by SDcat09 on Jun 28, 2011 1:51 PM MDT up reply actions  

I once tried to convince my wife the Shjon would be a great name for a boy...

based primarily on my irrational Podein man-crush.

"Your classless organization in your unholy city accused our Team of an unspeakable act. It was baseless, the Giants are classless, and I have no sympathy for your eternal damnation."

by RdRnnr on Jun 29, 2011 5:00 PM MDT up reply actions  

Uwe Krupp

We Fear NO ONE.
Because We Know: WE ARE THE ROCKIES.

by The Lodo Magic Man on Jun 29, 2011 5:45 PM MDT up reply actions  

Interesting topic Charlie

It would be nice if the Rockies can make a couple more playoff runs the next few seasons and possibly push their ratings higher making their games an even more valueable product. They already ranked 9th in local ratings last season (although some of the teams that share a city may have had a higher ratings if half the people in the viewing area were not fans of another team).

2010 Team RSN Avg. rating
St. Louis Cardinals FS Midwest 9.70
Minnesota Twins FS North 7.85
Philadelphia Phillies CSN Philadelphia 7.20
Cincinnati Reds FS Ohio 6.52
Boston Red Sox NESN 6.25
Detroit Tigers FS Detroit 6.23
Tampa Bay Rays FS Florida 5.52
Milwaukee Brewers FS Wisconsin 5.20
Colorado Rockies FSN Rocky Mountain 4.88
Seattle Mariners FSN Northwest 4.83
San Diego Padres Cox/SD4 4.79
New York Yankees YES 4.38
Atlanta Braves Sport South 3.66
San Francisco Giants CSN Bay Area 3.48
Pittsburgh Pirates FSN Pittsburgh 3.44
New York Mets SportsNet New York 3.25
Cleveland Indians SportsTime Ohio 3.13
Baltimore Orioles MASN/MASN2 3.06
Florida Marlins FS Florida 3.05
Arizona Diamondbacks FS Arizona 2.96
Kansas City Royals FS Kansas City 2.82
Chicago Cubs CSN Chicago 2.71
Texas Rangers FS Southwest 2.66
Houston Astros FS Houston 2.46
Chicago White Sox CSN Chicago 1.85
Los Angeles Dodgers FS Prime Ticket 1.63
Washington Nationals MASN/MASN2 1.34
Los Angeles Angels FS West 1.23
Oakland A’s CSN California 1.23

NO, we are NOT going to fire Jim Tracy midseason!!!!!

The Rockies couldn't be any more offensive or less offensive all at the same time.

by RhodeIslandRoxfan on Jun 28, 2011 11:46 AM MDT reply actions  

Interesting numbers, where did you find these?

It’s funny that the bottom teams on this list are on the top ten list for revenue deals:

TEAM/NETWORK ……………..Annual Revenues……….Additional TV Revenue
New York Yankees
YES…………………………………..$80 million……………….$13 million
New York Mets
SNY…………………………………..$52 million
Los Angeles Angels
FSN West………………………….$40 million
Detroit Tigers
FSN Detroit………………………..$33 million
Los Angeles Dodgers
Prime Ticket………………………$31 million
San Francisco Giants
CSN Bay Area……………………$30 million
Seattle Mariners
FSN Northwest…………………..$29 million
Arizona Diamondbacks
FSN Arizona………………………..$28 million
Baltimore Orioles
Mid-Atlantic Sports………………$28 million
Washington Nationals
Mid-Atlantic Sports………………$28 million

by Charlie77 on Jun 28, 2011 1:37 PM MDT up reply actions  

I got them from

the bottom of this piece a couple of months ago. (Although it now looks like that table has been messed up a little)

Also, those numbers can be a little misleading when it comes to the New York, Chicago, and LA teams because all of them are in markets with two teams. Therefore these ratings, (as in, the percentage of people in the market watching the game) are automatically going to be lower because half the people in the market don’t root for that team. (Half Yankee and half Met fans for instance)

At the same time though, the New York, Chicago, and LA markets (especially NY and LA) are all so big, that even a draw from half of them is still going to get you a bigger TV deal than you will see in most markets.

The fact that the Rockies rank 9th on the ratings list with a 4.88 and have the 10th largest TV market puts them a good spot though.

NO, we are NOT going to fire Jim Tracy midseason!!!!!

The Rockies couldn't be any more offensive or less offensive all at the same time.

by RhodeIslandRoxfan on Jun 29, 2011 9:22 AM MDT up reply actions  

I'm late to the party, but don't forget Oakland/San Fran and Washington/Baltimore

as having split TV markets. That makes six of the bottom ten on ratings share come from a two team TV market. The Yankees, Nats and Orioles benefit in their contracts from owning their own networks, that’s why the latter two might have bigger than expected TV contracts for their ratings. The one that makes very little sense is Arizona.

by Rox Girl on Jul 4, 2011 3:21 PM MDT up reply actions  

The other thing about the Washington/Baltimore markets is the sheer size them

They cover all of Maryland, all of Delaware, all of Virginia, most of North Carolina, and even parts of West Virginia and PA. So even if the ratings are not all that good, they have to be hitting a decdent number of people.

NO, we are NOT going to fire Jim Tracy midseason!!!!!

The Rockies couldn't be any more offensive or less offensive all at the same time.

by RhodeIslandRoxfan on Jul 5, 2011 12:05 AM MDT up reply actions  

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