Last week at Piratefest, Pirates Prospects was part of a backstage Q&A with Frank Coonelly. One of the questions we asked him was if local TV contracts were the next frontier for revenues, judging by the recent TV deals signed by the Angels and Rangers. The video is courtesy of Tom Smith from Rumbunter:
Coonelly’s answer was that revenue sharing was implemented originally in the early 1990′s to counteract the disparity of local TV revenues, specifically the Yankees’ $40 million/year TV contract which at the time was “astronomical”. A portion of that money was shared with all teams that were without their own mega-deals.
Here we sit on the cusp of 2012 and now $40 million is dwarfed by the recent deals of the Angels ($150 M/year for 20 years) and the Rangers ($80 M/year for 20 years). There are some teams, the Yankees and Red Sox for example, that have formed their own networks in recent years to control their own financial destinies in the media market.
One item for conside...