Tuesday, January 21, 2014

Reds rank dead last in television revenue among major league teams

According to Awful Announcing, the Reds aren't doing so well, comparatively speaking, to the other 29 franchises in major league baseball. At least when it comes to producing television revenue.

Not only is Cincinnati's local television deal with Fox Sports Ohio, which pays the club $10 million on an annual basis, the lowest annual television deal in Major League Baseball, the Reds also rank dead last in total television revenue, too.

The good news for the Reds is that MLB's new national contract with ESPN, Fox, and Turner will more than double the amount of cash each team will receive from the three networks. Each team will go from pulling in $25.33 million per year to roughly $52 million beginning in 2014. But because all teams will get an equal slice of the revenue pie, the Reds really don't gain an advantage, as all of the other franchises receive the massive boost in revenue, too.

Overall, the Reds earned nearly $45 million in total television revenue in 2013. This figure comes from their local television deal, the national television deal that MLB has, and MLB's shared revenue clause, which mandates that 34 percent of a team's local television money goes into a pool shared by all 30 teams.

Fortunately, this total is projected to skyrocket in 2014, as the Reds will reportedly rake in $73.48 million. However, this sum still ranks dead last among all MLB teams. The next closest team to the Reds is surprisingly the Cardinals at $76.12 million. By comparison, the Dodgers lead all teams with a projected total of $179.08 million. So, it's not hard to see why they have been on a spending spree lately.

One thing the Reds have to look forward to in the not-so-distant future is the re-working of their current local television deal. Like many clubs, the Reds are slated to receive a big boost in annual revenue from local television money, and it's only a matter of time before they sign on the dotted line.


Anonymous said...

And if I remember correctly, the Reds have the #1 viewing % of all teams. Looks like FSO is getting a deal.

Anonymous said...

FSO also has the worst video and broadcast equipment in all MLB . Even their HD is pisspoor.

second rate operation at best . I always watch the visiting feed for reds games .