MaxPower said:
All I do is Nguyen said:
I'm not familiar with the McCourt Bankruptcy. Can anyone shed light on this?
As part of the bankruptcy MLB agreed to cap the amount of the TV deal that was subject to revenue sharing. Estimates are that it saves about $66M a year that would go to revenue sharing if they were treated like any other club.
https://www.forbes.com/sites/maurybrown/2026/01/26/mlb-didnt-cut-the-dodgers-a-6-billion-revenue-sharing-shelter-bankruptcy-court-did/
I can add a bit to this as I worked most of my career in the regional sports tv business. The Dodgers benefit not only from the cap of rev share in their local TV deal, but also benefit from a local TV deal that is among the most recent to be signed (but before the collapse of the cable/satellite ecosystem became apparent). The Dodgers and a large cable company co-own the regional network. That deal also has a guarantee of payments to the Dodgers from the regional tv network (on top of the rights fees), guaranteed by partner that co-owns the network, regardless of actual network profit or loss.
The estimate is the Dodgers are getting around $225 to $250 million per year from their regional rights (including the tv network guaranteed payment). No other team is getting anything close to this amount and most have had to take a significant haircut on their rights fees recently as the former Fox regions (and others) went into bankruptcy.
the Dodgers deal still has many years on it so they have revenue certainty that other teams don't. The system was already broken, but the Dodgers deal has broken the system completely. And the fact that MLB gave the Dodgers the rev share shelter only exacerbates the utter imbalance.