Major League Baseball franchise the Los Angeles Dodgers are considering creating their own regional sports broadcaster in partnership with entertainment production company Dick Clark Productions, according to Forbes.
US broadcaster Fox Sports currently holds the regional television rights for the Dodgers, paying the team $350 million (€271 million) over 12 years, an average of $29 million per year. The 2013 season is the final one of the current deal.
Forbes reports that, by launching their own sports network, the Dodgers would avoid the MLB’s 34 per cent revenue-sharing tax, which applies to revenues generated by regional rights deals.
A Dodgers network would enjoy revenue from two sources: carriage fees and advertising.
Investments in regional sports networks by MLB teams the New York Yankees – in the Yes Network – and the Boston Red Sox – in the New England Sports Network – have proved successful.