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View Full Version : The Reds' Local TV Situation



membengal
01-29-2011, 02:18 PM
This is developing in the Phil Castellini thread, and thought it might be worth its own air.

Such an important source of revenue for local clubs nowadays (and perhaps it has always been thus) is local TV revenue. The Yankees have clearly maximized theirs with YES. The Red Sox with NESN. The Orioles even do ok with MASN. The Rangers just cashed in big time with their local Fox sports affiliate.

So, having read anecdotally that the Reds' contract with FSN Cincy/Ohio/whatever is not particularly favorable to the Reds, does anyone know when it is up?

And, to a second and perhaps even more important point, do the Reds have any competitor options to leverage against FSN when the bidding comes up for a new deal? Even if the Reds continue to get eyeballs to sets in the numbers they apparently did last year, will FSN have any incentive to really bump up the numbers in a new deal if there is really no outlet to drive the bidding?

A part of the Reds' ability to re-sign Votto three years from now etc. and make other player purchase options is tied up in TV money, I suspect, even beyond getting an appreciable bump in people in seats at the ballpark.

Ghosts of 1990
01-29-2011, 03:26 PM
I wish they had something like STO (Cleveland Indians network) to step in and bid on the station rights. Just allows a team to further it's footprint in say, a Columbus or some of the Kentucky markets.

Heath
01-29-2011, 03:37 PM
I wish they had something like STO (Cleveland Indians network) to step in and bid on the station rights. Just allows a team to further it's footprint in say, a Columbus or some of the Kentucky markets.

Why not join STO? There's plenty of programming available to be shared. Simulcast Lance McAlister's Sportstalk, etc.

Captain Hook
01-29-2011, 03:41 PM
I have no idea about the Reds current TV situation but here's a link that list all the other teams that have their own networks and a little information about how they work.

http://en.wikipedia.org/wiki/Major_League_Baseball_on_regional_sports_networks

11larkin11
01-29-2011, 04:16 PM
Why not join STO? There's plenty of programming available to be shared. Simulcast Lance McAlister's Sportstalk, etc.

The bad part of that is the amount of games they would be able to air. FSO airs 145. With a Reds/Indians share, like the old days before STO here in Columbus, you would only beable to see ~85 games a year, and about 85 Indians games a year, so Indians fans would not appreciate that either. So even if the contract is different, you'd be losing a lot of revenue by having half as many games on TV.

hebroncougar
01-29-2011, 04:27 PM
I wish the Reds would create their own network, and pair up wth someone like the Nashville Predators, Memphis Grizzlies, Indiana Pacers, Columbus Crew, and/or Columbus Blue Jackets or something similar, and shoot to expand their market. Now is the time for them to push their market outward, like the old days. Obviously only one team from some of the other major sports who have their games aired on some regional FSN networks.

westofyou
01-29-2011, 04:34 PM
The Reds have a bad contract because they were not popular and had little leverage when it was cut. But that's not the only revenue that comes from having a TV contract, there si ad revenue and the Reds will be getting an uptick on that this year. But the area is not awash in big ticket companies that use the ads on Reds games (AE doors, regional food, hip replacement surgery) Once they have cache they can cut a better contract, get better ad revenue.

http://www.bizjournals.com/cincinnati/stories/2010/08/02/story2.html




Most ad rates for Reds broadcasts are locked in for this year. But the high ratings could help the ad sales figure next year. The Reds can charge higher prices for ads if their games are reaching more people. More advertisers are likely to be willing to pay those higher prices, too, because they’re reaching more eyes and ears with their message.
“If we’re doing our jobs, we hope it translates to that,” he said.

membengal
01-29-2011, 04:42 PM
The Reds have a bad contract because they were not popular and had little leverage when it was cut. But that's not the only revenue that comes from having a TV contract, there si ad revenue and the Reds will be getting an uptick on that this year. But the area is not awash in big ticket companies that use the ads on Reds games (AE doors, regional food, hip replacement surgery) Once they have cache they can cut a better contract, get better ad revenue.

http://www.bizjournals.com/cincinnati/stories/2010/08/02/story2.html

Right, that's why I asked when it was up. They certainly have more to sell if it is up soon. Too bad about not necessarily having a second bidder to help drive that price when it is up.

membengal
01-29-2011, 04:43 PM
I wish the Reds would create their own network, and pair up wth someone like the Nashville Predators, Memphis Grizzlies, Indiana Pacers, Columbus Crew, and/or Columbus Blue Jackets or something similar, and shoot to expand their market. Now is the time for them to push their market outward, like the old days. Obviously only one team from some of the other major sports who have their games aired on some regional FSN networks.

Grizzlies and Predators are part of FSTennessee. But the idea of each of those teams regionalizing and owning a chunk of a network with someone like the Reds isn't a terrible idea. I know the Grizzlies tried to get their own network off the ground a few years ago when they were trying to find extra dollars from their TV situation.

westofyou
01-29-2011, 04:56 PM
Right, that's why I asked when it was up. They certainly have more to sell if it is up soon. Too bad about not necessarily having a second bidder to help drive that price when it is up.

Last contract started in 2007, unsure of length or terms.

http://cincinnati.reds.mlb.com/news/press_releases/press_release.jsp?ymd=20060804&content_id=1592746&vkey=pr_cin&fext=.jsp&c_id=cin

membengal
01-29-2011, 05:00 PM
Last contract started in 2007, unsure of length or terms.

http://cincinnati.reds.mlb.com/news/press_releases/press_release.jsp?ymd=20060804&content_id=1592746&vkey=pr_cin&fext=.jsp&c_id=cin

Thanks. Hope it doesn't run too much longer. Even if the Reds somehow talk the fanbase into bumping up to 2.5 million or so per year (which I know is historically not all that likely) they will need help from better dollars from the TV-side to get the payroll to where we all want it to be.

Big Klu
01-29-2011, 05:07 PM
Why not join STO? There's plenty of programming available to be shared. Simulcast Lance McAlister's Sportstalk, etc.

STO is owned by Larry Dolan, who also owns the Indians. STO was created specifically to televise the Tribe.

WVRedsFan
01-30-2011, 06:03 PM
Here's the rub. I now get all 145 games on FS Ohio. Just like in the old days when WLW had a Reds network that included Kentucky, southern Ohio, WV, and Indiana, you got maybe 25 games and it was up to the local affiliate how many of those that they would telecast, based on local sponsorship. I imagine that the prospects for local sponsorship in today's economy (especially in the swamps of Kentucky and WV) the prospects would be slim. With FSO carrying the games on DirecTV, it's not a worry to get your team out there for fans to enjoy.

Here in WV with the old Reds Network, we saw just a handful of games on Channel 3 in Huntington, which is no longer on our cable system or DirecTV, so I would be shut out. With FS Ohio, it's there for the whole nation to see 145 times a year with Extra Innings. Just like many teams in baseball and otherwise, the local bradcasts are unavailable unless you live within an area that has the local channel. the Chicago Bulls are an example. My son is an avid Bulls fan, and the game that are shown on WGN Local (20 or so) we don't get. You would be shooting yourself in the foot to go this direction.

And besides, the next contract will be much better than the last one.

Unassisted
01-30-2011, 06:15 PM
The radio deal is more favorable. The Reds are controlling their own destiny and ad rates on the radio side, since they took over selling in-game radio commercials in 2008. Hopefully they can point to that experience as a model for improving their next deal on the TV side.