Forget what you have heard. I think the Dodgers TV deal will be a lot more than a quarter of a billion a year. I think $400 million is just about right and if it is, I fully understand why Guggs and Company paid $2.1 Billion for the team.
The Dodgers hold all the cards in the negotiations with FOX:
- If they don’t reach an agreement by next Friday (and I really doubt they will. I mean why would they?), the Dodgers then can present FOX with a final DEMAND.
- FOX then has 30 days to accept or reject the offer. The final demand should be for 25 years/$10 Billion. Take it or leave it.
- If they reject it, the Dodgers can negotiate with anyone (like Time Warner) or start their own network (that would be the ticket).
- Fox would like to add the Dodgers to their purchase of half of the YES (Yankees) network, which they will eventually own totally.
- If the Dodgers leave FOX, all FOX would have is the Ducks, Kings, Angels and Clippers. Yeah, that’s not a position they want to be in.
- FOX will be forced to pay $10 Billion – It’s not worth that to TMC.
On the other hand, why not just hire an experienced Network Executive and build your own channel and keep all the money?
Here’s how to negotiate that: “$10 Billion or we are your competitors, chumps!”