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Columnist Breaks Down Dodgers DVR Financials

Great sidebar article in Forbes today by Tom Van Riper to go along with the magazine’s latest MLB baseball team valuation rankings.

From the headline (“The New Moneyball”) to the lede (“Frank McCourt shares a name with the beloved author of Angela’s Ashes and a story that’s just as pitiful…”) to the core premise, it’s required reading for anyone interested in the fortunes of the transitioning team. According to Van Riper, the Dodgers are actually worth close to what some group is about to pay for them. All because of the power of sports over the DVR:

In an age when fewer people watch television, and fewer still actually sit through the commercials, sports programming is the last bastion of appointment TV: It demands to be watched live. Some 42% of U.S. households now have a DVR, up from 29% three years ago — not coincidentally, Nielsen reports that ad spending on sports jumped 33% over that same period, to almost $11 billion annually.

“We believe there is no content more valuable in media today than live sports, and it’s a case we make with our distributors every day,” says Jeff Krolik, executive vice-president at Fox Sports Networks. This phenomenon is upending the entire sports world.

Van Riper goes on to provide a great primer on the evolution of baseball broadcast rights deals and explains how a 2010 agreement swung by the Texas Rangers changed everything.

[Photo: Tom VanHorn/Shutterstock.com]

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