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As a Braves fan, I see hard times a'comin
TV contracts have been spiraling upwards as teams like the Texas Rangers drive them up. Most teams are able to take advantage of this and cash in big time. Unfortunately my Atlanta Braves will not be one of them as their deals are all in the 25 year (holy crap!) range.
Here is Braves CEO Terry McGuirk on the subject
"Whenever old [TV] deals are up and new deals get realized, there are big jumps in value. I have predicted that, knew it was coming," McGuirk said. "And I think we have an undervalued local rights [deal].
"That being said, we inherited a deal that was done under [previous owner Turner Broadcasting/Time Warner] a little over four years ago, before the sale, that lasts out through 25 years. So there is no opportunity for a different deal than the one we have. Every single set of games on the different networks that we are seen on [Fox Sports South, SportSouth and Peachtree TV] are all 25-year deals or thereabouts."
McGuirk said the deals call for "cost-of-living type increases" each year, but contain no options for renegotiation.
"They were at-market deals when they were done, but the market has changed," he said. "We will have to look elsewhere for the increases that we will need in revenue to continue to build this franchise. It’s what the owners at the time decided to do, so we have to live with it. ... It’s nothing to be ashamed of, but it’s not going to be these newer deals where there is cash up front."
Asked if the TV contracts will be a competitive disadvantage for the Braves over the next two decades, McGuirk said: "Let’s just say it won’t be an advantage."
So as other teams get more money and spend more money the Braves are going to stand pat and be a small market team for a long time. It's gonna be a bumpy few decades here in Atlanta.
TV contracts have been spiraling upwards as teams like the Texas Rangers drive them up. Most teams are able to take advantage of this and cash in big time. Unfortunately my Atlanta Braves will not be one of them as their deals are all in the 25 year (holy crap!) range.
Here is Braves CEO Terry McGuirk on the subject
"Whenever old [TV] deals are up and new deals get realized, there are big jumps in value. I have predicted that, knew it was coming," McGuirk said. "And I think we have an undervalued local rights [deal].
"That being said, we inherited a deal that was done under [previous owner Turner Broadcasting/Time Warner] a little over four years ago, before the sale, that lasts out through 25 years. So there is no opportunity for a different deal than the one we have. Every single set of games on the different networks that we are seen on [Fox Sports South, SportSouth and Peachtree TV] are all 25-year deals or thereabouts."
McGuirk said the deals call for "cost-of-living type increases" each year, but contain no options for renegotiation.
"They were at-market deals when they were done, but the market has changed," he said. "We will have to look elsewhere for the increases that we will need in revenue to continue to build this franchise. It’s what the owners at the time decided to do, so we have to live with it. ... It’s nothing to be ashamed of, but it’s not going to be these newer deals where there is cash up front."
Asked if the TV contracts will be a competitive disadvantage for the Braves over the next two decades, McGuirk said: "Let’s just say it won’t be an advantage."
So as other teams get more money and spend more money the Braves are going to stand pat and be a small market team for a long time. It's gonna be a bumpy few decades here in Atlanta.
