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Wednesday, May 4, 2016

Yankees TV revenue: more for Steinbrenner Kids but less for the team?

I don't pretend to really understand this but ...

Estimated TV Revenues for All 30 MLB Teams
by Craig Edwards - April 25, 2016 fangraphs.com

Regional Sports Networks (RSNs) ... local cable television deals ...

average annual value ... smaller sum at the beginning of a contract and increasing over time. Television contracts are often structured in this ... way ... estimated 2016 television money by assuming a yearly 4% increase in money paid to teams ...

only contracted revenue — i.e. to omit revenue generated from an ownership stake in a network. However, due to the lack of publicly available information, it’s best to regard these numbers as estimates. Note that, particularly with respect to the Chicago teams, as well as the Los Angeles Angels and Boston Red Sox, that the revenue estimates actually might include money from network ownership. It was difficult to parse those figures...


... big-market teams are reaping most of the benefits while the small-market teams are left with a relative pittance ...

Teams and networks make their money on getting their broadcasts to appear within the standard cable lineup and charging a per-subscriber fee, and the result is that more homes means more money to give to teams...

the Dodgers own 100% of the network ...

For the most part, the teams receiving an ownership share of the network are in the big markets...

The ownership shares are incredibly important when it comes to revenue-sharing because any money gained as an owner of a network is shielded from revenue-sharing ...

The Yankees used to have a much higher share of the YES Network, but have sold off most of it to FOX over the past few years for roughly $2 billion. It’s no surprise, then, that the Yankees are voicing their displeasure about revenue-sharing given that much of their revenue used to be sheltered from the rest of MLB through the network, but those sheltered revenues have been decreasing.


In all, MLB teams are receiving an estimated $1.5 billion on their local cable deals without considering ownership interests.
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The article lists the teams by TV revenue in millions in 2016. Here are some:
1. Dodgers $204
2. Angels $118
3. Yankees $98
4. Red Sox $80

14. Mets $46
15. Nationals $46

26. Royals (2015 champions)
27. Marlins $20
28. Rockies $20
29. Rays $20
Blue Jays unknown

So does this mean more money in the pockets of the Steinbrenner Kids but less for the team?

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