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.

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. 

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.

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?