Fox’s $6.1 Billion Dodgers Deal in Limbo

Dec 19, 2012  •  Post A Comment

The $6.1 billion television rights contract between Fox Sports and the Los Angeles Dodgers is in limbo, as the team and Major League Baseball negotiate over how the money will be split with the league, according to The Hollywood Reporter.

The new TV contract with Fox Sports would create a Dodgers-branded regional sports network, with Dick Clark Productions managing it, the piece adds.

The Dodgers reportedly want to structure the deal so that the team keeps most of the money, but MLB wants its "full cut of revenue sharing from any TV deal," the story reports.

Under the deal negotiated between Fox and the Dodgers, the first $84.5 million of licensing revenue would be shared with MLB, which then shares the money with all teams to help teams in smaller markets, the story adds.

The dispute is over a $100 million annual dividend from the regional sports network, with MLB arguing it’s part of the TV revenue and subject to profit sharing, according to the article. The Dodgers, however, believe it’s a bonus for the risk the owners took when they bought the team, and the MLB shouldn’t share in it, the piece reports.

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