MLB and MLBPA Have Agreed to Change CBA Helping Teams Losing TV Revenue

Major League Baseball has a problem and it is doing its best to navigate through it. Several franchises are currently without tv deals and the list is only expected to grow. Therefore, MLB and MLBPA have agreed to change the CBA helping teams that are losing TV revenue.

Furthermore, if you think teams wish or want to carry on without tv money; you would be wrong. Having games broadcasted is how ball clubs make money. Well at least one of the avenues.

As Sportico nicely explains, “The sources of how sports teams and leagues make their money has not changed much over the past 40 years. Tickets, sponsorships and broadcast rights continue to be the main buckets of revenue, while concessions, parking, merchandise and non-team events fill out the income statement.”

However, the tv model a lot of sports industries are still utilizing just does not seem to work anymore. There’s many culprits as to why, like some fans cutting cable due to pricing. But with the increases happening in streaming services too now; this could once more change things in the future.

Nevertheless the issues are mounting. Networks and channels are going under. Leaving a path of destruction behind them. Alden Gonzalez confirms, “By 2025, about half of MLB’s teams could be without the television contracts that annually provided them with tens of millions of dollars, if not more. This has triggered an uncertainty that some teams point to — with strong pushback from player agents and union officials — as a primary reason for their payroll constraints.”

MLB and the TV Revenue Era

Fans also are not happy. Less money would mean that some teams would have less money to spend. Most fans want their teams to field a good product; so having funds is essential.

The Padres are feeling the pinch losing around $60 million in tv money. The Diamondbacks are also experiencing something similar, being without without a deal. And there’s other teams that are about to be on the broadcasting chopping block as well. So then, what is being done?

Well, the MLB is stepping up. The league has built out a local television department and continues to state that it is prepared to handle broadcasts for teams that fall out of their TV contracts. So then, this move also ensures that fans don’t miss any games. Moreover, MLB commissioner Rob Manfred during a World Series presser says that the league is prepared to do the same with as many as 16 teams next season.

MLB and MLBPA Have Agreed to Change CBA Helping Teams Losing TV Revenue

Nice. But what about the money aspect? Teams that still have tv deals have an edge and advantage. Well, some help is on the way. The Athletic’s Evan Drellich reveals,

“News: MLB and the MLBPA have agreed to change the CBA so that teams losing TV revenue can receive luxury-tax dollars — up to $15 million per affected club. After months of negotiation, the MLBPA thinks the change will help teams spend more on players.”

Moreover, a portion of a memo from the MLBPA, with the players’ union laying out the possible benefit of the agreement states,

“We believe this agreement should positively affect the player market by softening the impact of revenue declines, by increasing the number of clubs who have monies to spend, and by undermining the ability of clubs to weaponize recent developments in RSN markets.”

Cool. But you also need teams to actually spend the money and not pocket it along with revenue-sharing. But hey, one problem at a time right?

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