Dodgers and Brewers

[heyzeus]

I'm so sick of the Dodgers and their ridiculous advantage over every other team.

Any of the other teams could do the same. The DeWitts are richer than the Steinbrenners.

Yes and no. The dodgers do have an MLB sanctioned sweetheart TV deal.

But the DeWitts have lots of money and don't spend it

Both things are true.

This.

When the Dodgers' previous owner filed for bankruptcy, in order to goose the sale price out of the bankruptcy proceeding (and to avoid letting the court determine the terms), MLB agreed to only take its cut of the Dodgers' TV revenue based on an old deal ($3bn). The new Dodgers owner then signed an $8.35bn TV deal, and didn't have to share any revenue from that additional $5.35 bn.

Thus, the Cardinals made about $20 million off their TV deal in 2026, and the Dodgers made about $340 million (increasing to $500 million a year by the end of their deal).

So yes, all of the owners are wealthy. Yes they could spend more than revenue if they really wanted to, although nobody likes running businesses that lose money. But yes, the Dodgers have about $320 million extra in TV revenue alone, 48% of which should have been shared with the other teams but for their sweetheart deal, and instead gives them a ton of cash to spend while still being profitable.

Can you please explain what "should have been shared with the other teams" means?

Sure. Every team is supposed to be paying 48% of their TV revenue into the pool to be divided among all of the teams. It's a way to try to equalize the disparity in media markets, because big markets like NYC/Boston/LA will command bigger TV revenues than, you know, Pittsburgh. I think the same is true for merchandise sales. Call it socialism for billionaires if you wish, as it kind of is.

But under the Dodgers' deal, they aren't paying revenue sharing at all on $5 billion of their $8.35 billion TV deal. So not only is their TV deal huge, because again it's LA, but they get to keep nearly half of 5/8 of it for themselves. It's part of a bankruptcy court order, so it would be difficult if not impossible to change it now. MLB agreed to it, so they could go back to the court to try to amend it, but good luck. The current Dodgers owners would no doubt argue that they only reason they paid so much for the team was because if this deal they struck with MLB and the prior owners in their bankruptcy proceeding.

[Fat_Bulldog]

Thanks heyzeus - that is [expletive].