Monday, February 1, 2016

Cable's Decline Could Spell Trouble For MLB And Sox

The Providence Journal's Brian MacPherson lays out a convincing case that the waning influence of cable television could soon have a dramatic impact on the financial solvency of major league baseball teams—including your own Boston Red Sox. Several teams—most notably the Dodgers—signed multi-billion dollar deals with cable operators back when cable still seemed like the smart choice. With plummeting subscriptions—and the rise in new alternative technologies like streaming—those cable mega-deals don't look so sweet. Most teams can hedge their bets due to "guaranteed" money from long-term contracts. But others—like the Red Sox—have different problems due to their direct ownership of cable outlets like NESN. John Henry could start seeing a dramatic drop in team revenues if people start dumping NESN—which is generally regarded as a second-rate operation at best. So, Dave Dombrowski better spend while he can—a revolution may be coming.