Early Sunday morning, Twitter was abuzz with news that the Dodgers and Fox Sports West had agreed to a 25-year broadcast deal valued between $6 billion and $7 billion. By Sunday afternoon, Bill Shaikin of the Los Angeles Times had confirmed the outline of the deal, but cautioned that the Dodgers and Fox were still negotiating, with a November 30 deadline looming.
As I explained last week in this post, the parties’ existing agreement gave Fox an exclusive, 45-day window in which to negotiate a new deal to govern the 2014 season and beyond. Hence, the November 30 deadline. If an agreement isn’t inked by Friday, the Dodgers must submit a final offer to Fox by December 7. Fox then has 30 days to accept or reject the offer. If Fox rejects the offer, the Dodgers are free to negotiate with whomever they want.
However the negotiations play out, it’s clear now that the Dodgers’ local TV revenue is about to enter the stratosphere. A 25-year deal worth between $6 billion and $7 billion would net the Dodgers between $240 million and $280 million per year. Per year. That’s more than any team has ever spent on player salaries in a single season — even the Yankees. And it’s nearly double the amount of local TV revenue pulled in annually by the team with the second-most lucrative deal — the other Los Angeles team (the Angels) — which entered into a 17-year deal with Fox Sports West worth $2.5 billion.
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