Something I don't understand regarding the Dodgers

Topnotchsy · Jan 23, 2013

Sources are reporting that Time Warner is close to reaching a deal to broadcast the Dodgers over the next 25 years. (I believe it is 25 years, though the articles I've seen have not been clear.)

I may be missing something here (and I know the money may be paid out over time) but wouldn't it have made more sense for Time Warner to just buy the team when it went up for sale in the $2 billion range? What am I missing?

Hallsgator · Jan 23, 2013

i'm sure there a lot of business reasons that you are missing and are only known by TWC execs.

or maybe they just don't want to own a team.

Topnotchsy · Jan 23, 2013

Hallsgator said:
i'm sure there a lot of business reasons that you are missing and are only known by TWC execs.

or maybe they just don't want to own a team.

I'm sure I am missing the business rationale... I'd just love to know what it is lol.

jaydub · Jan 23, 2013

After the team was owned by Fox and then McCourt I am pretty sure MLB was going to look very carefully at ownership groups before approving. I doubt another media conglomerate had a chance after the Fox years.

smapdi · Jan 23, 2013

There's something to do with owning a baseball team and taxes, I think stemming from MLB's peculiar antitrust exemption. You get a huge tax break for the first five years but then that benefit goes away, so buying a $2B team might not be a good long term investment. Thats why there is frequent ownership turnover in baseball compared to other sports. At least that's what I recall from a business article years ago, might be totally wrong. Anyway, TW might rather just have not have seen the benefit in ownership compared to just taking profits from broadcasting, since the team was in the red, at least according to all that divorce drama. or they are still dealing with the AOL losses and didn't want to take on another wholy alien enterprise.

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Something I don't understand regarding the Dodgers

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