The Dodgers' new ownership team paid $2 billion for the team and have a payroll over $200 million for 2013. They need a huge broadcast contract.
Better, it turns out, than they were a few weeks ago. The Dodgers — purchased by Guggenheim Baseball Management for $2 billion and with a 2013 payroll of almost $211 million — need to bring in a lot of revenue from a new broadcast contract. The team's current deal with Fox Sports, which concludes in 2013, is for $350 million.
That's peanuts compared to the crackerjack (Sorry! Ballpark humor...) deal that Fox and the Dodgers concocted and presented to Major League Baseball a couple of weeks ago, says Forbes' redoubtable sports business correspondent, Mike Ozanian: $6.1 billion, to create a hybrid regional sports network/renewal deal with Fox.
The size of that jump in the numbers should surprise no one. Guggenheim Baseball Management — a sort of sports-oriented private equity sub-firm created by Mark Walter of Chicago-based Guggenheim partners, Stan Kasten, and Magic Johnson — paid $2 billion for the Dodgers on the assumption that the broadcast contract would be ginormous.