Regional rights deals boost MLB team values

Local cable-television rights deals provided $923 million (€705 million) of income for Major League Baseball clubs in 2011, according to Forbes.

New local broadcast rights deals for the Houston Astros, Los Angeles Angels of Anaheim and Texas Rangers, which have been agreed but are yet to start, plus expected lucrative new deals for the San Diego Padres and Los Angeles Dodgers, could increase the clubs’ collective local rights fee income to more than $1.5 billion by 2015.

Fees from local broadcasters have increased steadily from $484 million per year for league clubs in 2001. The growth fuelled a 16-per-cent average increase in team values year-on-year to $605 million per franchise in 2011.

Local cable-television rights fees now account for 40 per cent of all media revenue for league clubs, up from 26 per cent a decade ago.