"In a settlement with McCourt - and to avoid the risk of the judge imposing a deal less favorable to the league - MLB agreed the fair-market value of a Dodgers TV deal would be based on the very Fox deal that Selig had rejected. Why did that matter? That value was $84 million for the first year and would increase thereafter, with the league taking its standard 34% cut and sharing that among all its teams."
"However, with a bidding war looming between Fox Sports and Time Warner Cable, Selig knew the rights would be worth more than Fox had offered in its extension with McCourt, who needed immediate cash. In bankruptcy court, an attorney for Guggenheim, the winning bidder and still the Dodgers' owner, said the settlement represented a "substantial component of the value proposition of the transaction" - that is, a primary justification for the then-record $2.15-billion purchase price."
"The Dodgers' $240-million signing of Kyle Tucker revived anguished cries that the team is ruining baseball. It also revived a strange chapter in team history, with frenzied online commentary that the signing of Tucker was made possible in large part because Major League Baseball long ago rewarded the Dodgers' owners with preferential financial treatment that continues to this day. Is that true? Yes and no."
Kyle Tucker's $240-million signing reignited criticism that the Dodgers benefited from long-standing financial advantages. In 2011, after then-Commissioner Bud Selig rejected a proposed $3-billion local television extension with Fox Sports, owner Frank McCourt placed the team into bankruptcy. MLB settled with McCourt and agreed to base the fair-market value of Dodgers local TV rights on the Fox deal Selig had rejected. That valuation set first-year value at $84 million, with the league taking its standard 34% cut and sharing proceeds among all clubs. Guggenheim, the winning bidder, said the settlement was a substantial component of the team's purchase price.
Read at Los Angeles Times
Unable to calculate read time
Collection
[
|
...
]