Financial problems have not hid from many people, businesses, or even sports organizations during this tough economic time. But for the Los Angeles Dodgers, their problems only seem to manifest into bigger problems that will ultimately change their future for a long time. Throw in the world of media coverage and the positive and negative dimensions around it and you can have a disaster waiting to happen, or a disaster inside of another disaster. For example, team owner Frank McCourt filed for bankruptcy after not being able to pay the team’s players after losing half of his finances due to his recent divorce. So now, McCourt is ordered by the Major League Baseball Commissioner Bud Selig to sell the team in order to uphold the leagues agreement with its players and other owners for the betterment of the league as a whole. And to make things worse, or for our entertainment, more interesting, in recent news, the Dodgers are in the process of suing FOX over the sale of the team’s media rights.
The Dodgers feel that FOX is interfering with the teams bidding process of the broadcasting rights. This in turn means that the Dodgers are under the impression that FOX is using the Dodgers brand in order to make profit before the team’s status and ownership is determined. The lawsuit filed against FOX states: “Fox's efforts to take possession of property of the [Dodgers] estate and to exercise control over such property violate the automatic stay...are affecting and will continue to affect the estate adversely, including the efforts of the [Dodgers] estate to evaluate, market and potentially dispose of its existing and future media rights,” However, FOX feels as though their right to move forward is listed in the initial contract agreement between the Dodgers and FOX. “This is just the latest chapter in the current owner's ongoing scheme to avoid honoring his contractual obligations” stated FOX Vice President of Communications Chris Bellitti. This lawsuit calls for an interesting conclusion after everything is said and done because the state of the franchise is literally up in the air. Media rights are especially important in this case because it has an affect on the team’s future, selling price of the team, and the future potential profits that can be generated through media and broadcasting agreements. The next owner will want to have a huge say on the media rights in order to set their own revenue streams which is why potentially intervening with the current deal can cause many problems in both the short and long term.
The lawsuit still has a lot of aspects that will be addressed as the case continues. Either way, it is a sad chapter in a historic franchise and its fans. In a sporting industry full of lockouts, holdouts, and scandals, this media rights and broadcasting issue stands in the way of a new future for the Los Angeles Dodgers. It is now more than just selling the franchise to the highest bidder because this issue will have to be resolved in order to efficiently get the right owner/owners the right deals for the buck. This just goes to show that media plays an important part of every franchise and their income statements.
Check out more articles below to get more information about this media rights issue:
References:
Fox News. (2011, November 16). Dodgers sue fox over sale of media rights read more: http://www.myfoxla.com/dpp/sports/dodgers-sue-fox-over-sale-of-media-rights-20111116
Palank, J. (2011, November 16). Dodgers sue fox over sale of media rights . Retrieved from http://online.wsj.com/article/SB10001424052970203699404577042220194179562.html