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Sox reach new TV deal with NBC Sports


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3 hours ago, Heads22 said:

So I use a family members login for the NBCSN games, as I can't get DIRECTV where I live. I'd probably still pay 90 bucks for the 60 games I can't watch thru WGN.

I'm surprised you can't get DIRECTV.  The satellite TV is usually most everywhere.

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The White Sox cable deal with NBC Sports Chicago expires after the 2019 season. That agreement averaged about $55 million in rights fees for the team. The rights fee could double in the next deal. The money could even be greater if the 55 games or so that are broadcast on WGN, whose deal with the White Sox also expires after 2019, are consumed by NBC Sports.

The ratings for the White Sox on NBC Sports have been very low. Bryce Harper could alleviate much of that problem. Moreover, the RSN makes money on advertising and pays dividends to its owners (the Chicago Cubs and Blackhawks also own stakes in the RSN). Higher ratings would bring in more advertising revenue and pay for some of higher rights fee to the White Sox.

The upcoming sale by Walt Disney of the 22 RSNs it acquired from Fox is likely to heat up the competition for streaming revenue in baseball with potential new players like Amazon.

Comcast posted net income of $23 billion last year. Harper’s deal is a check that makes sense for Comcast and one it could easily afford.

Found this at Forbes.

https://www.forbes.com/sites/mikeozanian/2018/12/13/comcast-could-easily-write-check-for-bryce-harpers-white-sox-contract/#1a9984de2f00

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The thing I find most interesting with the above article is you could almost make a case that a Harper signing is just as much in Comcast's interests as the White Sox...if not moreso.

Not only that, but it could have another unintended effect, which is also bumping up the value of the Cubs' deal, essentially making their subscription rates so prohibitive that most of Chicago is blocked from viewing the games (see LA Dodgers).

 

If you were even talking an extra $35 million per year for Harper, that would more than pay for itself and still provide an extra $10-20 million per season (not even accounting for increased revenue kickbacks due to more expensive advertising rates)...and THAT'S with a historically-low payroll.

Edited by caulfield12
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On 12/18/2018 at 9:20 PM, Tony said:

The Cubs new TV deal could get VERY interesting if they go with Sinclair.

- NBCSports Chicago (Comcast) is just losing a team, the station basically stays the same. Ownership stake just gets shifted around. 

- The Cubs are starting an entirely new RSN, and happen to be joining up with a gigantic competitor to Comcast. 

With cable where it’s at right now and so many people “cutting the cord” cable companies aren’t jumping for joy when a new channel comes into town and asking for a big sub fee. Comcast is the biggest cable provider in Chicago and already have a sports network that carries a Chicago baseball team. How much are they really going to offer the Cubs for their new network for distribution? This is exactly what happened with the Dodgers and Spectrum. Dangerous game the Cubs are playing...

For the Sox sake, I really hope the Cubs deal goes down exactly like the Dodgers and hopefully than the Sox can capitalize with an exciting team which fans can watch (since still 3 years later...most of LA can not watch the Dodgers). 

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On 12/19/2018 at 8:38 AM, jenksycat said:

I assume it's due to these massive TV deals forbidding it?  If that is the case then I don't see it happening any time soon unless they're able to go market by market as the TV deals expire...but then at that point the TV deals may not be as massive if they don't get a monopoly on the games.  A real catch 22

This. The reason they pay massive money for these TV deals is for exclusive rights in their prime market.  

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