Chip R (06-02-2023),Ron Madden (06-02-2023)
REDREAD (06-02-2023)
For all but a handful of teams next year, they are going to need to cut payroll by at least 20%.
Any team that Bally has stiffed will be free agents but so far that doesn't include our Reds. Furthermore, is there a model out there where MLB can replace the dollars paid out by Bally? It's complicated 'cause the big boys are generating lots of cash from their huge subscription fees. They're not going to likely give up their blackout rights. I don't know where this is going but I'm glad I'm not Manfred right now. I think he'd much rather juggle a labor dispute than this
https://www.espn.com/mlb/story/_/id/...le-mlb-nba-nhl
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Basically all but the big markets will have to cut payroll, making the divide between the haves and have nots even greater
REDREAD (06-02-2023)
Hoping to change my username to 75769024
Wayne Krivsky (06-02-2023)
Teams aren’t losing that much, just 20% of their TV money for the remainder of the season. I also think nearly every team expected this and calculated this risk into this year’s payroll. I am guessing the possibility of losing all their TV money this year was the Reds rationalization for cutting payroll so drastically this season.
Hoping to change my username to 75769024
Good point. But the opportunity cost? That's a decent relief pitcher isn't it? Especially when other teams won't have the money in their budget next year.
As an owner you probably wished you hadn't taken a dump on your fanbase by asking them where else were they going to go. Tickets and gate receipts mean more than ever before.
Last edited by mgbrown66; 06-02-2023 at 10:59 AM.
And in the case of the Reds that 20% should be pretty easily recouped in attendance numbers as long as the team continues to overperform preseason expectations. The Bally situation should not be an excuse for teams to cut payroll, nor should players/fans accept that thought process.
The issue is next year, not this year. Not much teams can do to cut payroll this year. As for the Reds they haven't had their revenues cut by Bally as of yet
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The Reds have already cut payroll. Us fans painfully know that
Right. The big issue is what happens next year. If Bally’s goes under, the Reds should be free agents on their TV deal and be able to shop around for another deal.
The question is “can they get as good a deal?” Considering that Bally’s had a hard time staying in business under the deals they negotiated, it’s likely someone else will want to pay less. The best outcome for the Reds, I think, is if MLB decides to take over everyone’s TV deals, making it a national market like the NFL. But I doubt MLB will do that.
Hoping to change my username to 75769024
Chip R (06-02-2023),Wayne Krivsky (06-02-2023)
Yeah if anything the Reds should be one of the least affected teams by this, at least in the short term. Long term we will have to wait and see what MLB does. I'm skeptical networks are looking at Bally right now and are eager to offer big money for MLB TV rights. It's very possible that 20% cut in TV money could be the new norm.
20% of 40 million is 8 million.. That's pretty significant, esp with our penny-pinching ownership.
Also, isn't there speculation that the Reds deal is really 50-60 million?
One of the linked articles said the suns got about 40 million, and even the Marlins made a lot more than that.
Seems like the Reds would get a deal that would be at least as good as the Marlins.
But yea, all speculation, our sneaky owners never made the TV deal public, so they could cry poor.
Last edited by REDREAD; 06-02-2023 at 02:13 PM.
[Phil ] Castellini celebrated the team's farm system and noted the team had promising prospects who would one day be great Reds -- and then joke then they'd be ex-Reds, saying "of course we're going to lose them". #SellTheTeamBob
Nov. 13, 2007: One of the greatest days in Reds history: John Allen gets the boot!
Right but it gives them an excuse to cut payroll. "Hey, we were going to spend but we didn't get all of our TV money that we projected so now we can't."
The Reds should not be affected by this because A. They are still getting all their TV money and B. They have a lot of money coming off the payroll in 2024 with few players due large raises. They could actually zig when other teams zag. While other teams cut back on payroll, the Reds theoretically get a big contract or two and still have a payroll under $100M.
REDREAD (06-02-2023)
Another article on the topic...
Court Rules In MLB’s Favor In Diamond Bankruptcy Hearing
By Anthony Franco | June 1, 2023 at 9:43pm CDT
There was a notable development in the Diamond Sports Group bankruptcy saga this evening. The court ruled in Major League Baseball’s favor on yesterday’s hearing regarding Diamond’s efforts to restructure a number of its local broadcasting deals.
The broadcasting conglomerate has temporarily been paying reduced rights fees (75%, according to Alden González of ESPN) to the Twins, Guardians, Diamondbacks, Reds and Rangers since filing for bankruptcy two and a half months ago. Diamond had sought a ruling that’d require the team to renegotiate their broadcasting contracts to more accurately align with the current market value of broadcasting rights — which has dropped sharply in recent years due to the rise of cord-cutting, contributing to Diamond’s bankruptcy filing. That argument wasn’t persuasive to the court, which concluded that a change in the market “doesn’t mean the contract price is clearly unreasonable” (relayed by Evan Drellich of the Athletic). As a result, Diamond is now responsible for backpay to the five organizations it had been paying the reduced rate. According to González, the court hasn’t yet set the deadline for those payments. If Diamond fails to meet its responsibilities by whatever dates are ultimately chosen, MLB would have the ability to reclaim the broadcasting rights for those clubs from the Bally networks.
“MLB appreciates the ruling from the federal bankruptcy court in Houston requiring Diamond to pay the full contractual rate to clubs,” the league said in a statement relayed by González. “As always, we hope Diamond will continue to broadcast games and meet its contractual obligations to clubs.” Diamond carried broadcasts for 14 major league teams entering the season. It forfeited the ability to carry Padres’ games earlier this week by opting not to meet a scheduled payment in that contract. MLB promptly took over in-market broadcasting and is making those games available both for streaming on MLB.TV and via other cable platforms. The league reiterated this evening it is prepared to do so for any other contracts which Diamond lets lapse. Today’s ruling increases the odds of Diamond abandoning other deals, though the corporation hasn’t announced any immediate plans to do so.
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