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How the Dodgers' New TV Contract Exemplifies Major League Baseball's Problems

Cable subscribers are subsidizing a dying industry

How the Dodgers' New TV Contract Exemplifies Major League Baseball's Problems

Police in riot gear guard the dugouts, preparing for the worst, with German shepherds at heel. This is Philadelphia in 1980, after all.

It's the bottom of the ninth. Two strikes. Two out. Bases loaded.

Human rocket Willie Wilson of the Kansas City Royals hugs the plate, curiously dressed in full powder blue, a color fancied by baseball teams and wedding parties of the era.

Webster University economist Patrick Rishe: "I think baseball is seen as archaic. It moves at a slower pace. Their athleticism doesn't jump off the screen."
PHOTO BY TOM CARLSON
Webster University economist Patrick Rishe: "I think baseball is seen as archaic. It moves at a slower pace. Their athleticism doesn't jump off the screen."

His nemesis this evening is Phillies closer Tug McGraw, whose fame will later be shadowed by that of his son, country singer Tim McGraw. The screwball artist fires a pitch letter-high, but Wilson can only flail. Kansas City's insurgency is repelled. The Phillies win their first World Series since forming during the presidency of Chester A. Arthur.

A record 54 million people tune into the game that night. It is perhaps the last time baseball can legitimately call itself America's national pastime.

Fast-forward to the fall of 2012. Marco Scutaro cracks a 10th-inning single into the wet outfield of Detroit, nudging the San Francisco Giants to a World Series sweep. The Nielsen ratings soon will reveal how far baseball has plunged.

An average of just 12 million people tune into the 2012 World Series — a collapse of nearly 80 percent from McGraw's heroics three decades earlier. In head-to-head competition, a regular-season NFL game will lap the Series by 10 million viewers. Geek sitcom The Big Bang Theory will pummel it by 5 million.

Even the investigative drama Person of Interest — featuring "a software genius and an ex-CIA operative who work together to prevent violent crimes before they can happen" — will beat the Series by 2 million viewers.

Baseball commissioner Bud Selig has little to say about this spurning of affections. This flight of fans, after all, is very old news.

Last October's contest marked the seventh straight Series to produce record-low ratings. Baseball's defenders have tried to explain the numbers away, citing late East Coast start times, an outbreak of entertainment alternatives and the favored wail of curmudgeons everywhere: that a younger, lesser generation of men prefers to whack pixelated zombies than witness the splendor of Pablo Sandoval going yard.

Others claim the Tigers and Giants failed to ignite the country's passion. "I am of the belief that the matchup of the World Series is always important," says Professor Wayne McDonnell Jr., known as "Dr. Baseball" for his study of sports at New York University.

But of America's three major sports, only baseball needs excuses.

The NFL's ratings remain on a march to the heavens; 108 million people watched the last Super Bowl. Viewership for the NBA Finals — though reduced from the days of Bird, Magic and Jordan — is once again climbing skyward.

Meanwhile, baseball's ratings continue to plummet, irrespective of month or matchup. Those record-low Series of the last seven years featured the game's biggest attractions, from the moneyed villains of Boston and New York to storied franchises like St. Louis and San Francisco. None stanched the bleeding.

Regular-season games have declined equally. Fox's Saturday audience has gone down an average of 800,000 since 2001. Sunday-night ESPN telecasts have shriveled by a million viewers in just the past six years.

In any other industry, such staggering drops would raise alarms of a rotting ship. One might presume that TV execs are screening Selig's calls. But the exact opposite is happening.

ESPN, Fox and Turner recently struck deals that double their annual payments to MLB. The Los Angeles Dodgers soon will ink a 25-year pact for local rights that's worth an estimated $7 billion to $8 billion.

If it all seems incongruent, born of the same economics that brought you bank bailouts and the housing crisis, that's because it is. Baseball, you see, is expecting you to pick up the tab.

In an age of stagnant wages, the average cable or satellite bill is expected to reach $200 by 2020 — even before extra fees for phone and Internet are added in.

"It's an unsustainable model for sports rights to escalate at a pace that's exponentially higher than wages for families," says Dan York, DirecTV's chief content officer. "It's coming to the breaking point."

Banking on the slowest falling star

Inside broadcasting's executive suites, the Holy Grail has a new name: "appointment TV," considered the last defense against a fierce and fast-encroaching enemy, the DVR.

The problem for networks is that viewers are no longer showing up when they're supposed to. Instead of planning Tuesday nights around, say, Justified, people are recording shows to watch at their convenience. And, unless they have a fondness for commercial interruptions, they'll be fast-forwarding through their daily regimen of Geico ads. Which makes Justified less valuable to advertisers.

Human nature, however, isn't partial to watching a baseball game three days after it's played. Viewers still want to see it live, even if it means opening their homes to Flo from Progressive.

"Live sports and a few other events, like the Oscars, are still must-see programming," says Maureen Huff of Time Warner Cable, the company soon to be writing those very large checks to the Dodgers.

Advertisers also see sports as the best weapon for reaching young men, who are known to have a special gift for eluding commercial reach. Never mind that baseball's youthful audience has gone AWOL. More women 50 and older watched the last World Series than did men under 49. But compared with shows featuring babe cops and reality fare, the game's ratings practically shine.

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13 comments
billdale
billdale

I have never subscribed to cable or satellite, and never will so long as they play these games where everyone is forced to order a bloated menu and agree to pay such outrageous fees. If I can pick and choose which channels I watch, and can simply pay for those channeIs I actually watch, I may finally subscribe to cable for the first time-- until then, I'll get by on what is broadcast for free, and what I care to see at walk-in theaters, what is available online, and what's available while I'm at the gym. I refuse to give in to bullies.

I would never watch baseball or football in their present form: hours of sitting and waiting for players to execute a few spare minutes of action... that's insane. If I want to watch sports, I'll watch Kobe and company as they work out vigorously throughout an entire game... or, even better, burn some calories myself rather than be a mere spectator, getting fat on a couch with a remote in hand.

SaMo
SaMo

"Viewership for the NBA Finals — though reduced from the days of Bird, Magic and Jordan — is once again climbing skyward."

This is simply not true.  Nielsen ratings for the NBA finals have declined from 10.6 to 10.2 to 10.1 over the past three years. 

NativeAngeleno
NativeAngeleno

You assume too much, mainly that the status will remain in quo across the board.

As people revolt against cable and satellite bills, the cost will have to be downgraded. This will become the case especially after the dollar is devalued down to it actual worth, maybe a nickel.

Prices for everything will drop accordingly, after a while. People will still crave their diversions, tho, so baseball will be there and just have to adjust, along with everyone and everything else.

It could well turn out that ballplayers and owners alike will have to downgrade their years of pillaging the glory hole to a more common status of "survival, plus".  An equilibrium will be found that pays the average multi-millionaire player the then-equivalent of a few hundred thousand dollars instead, the average billionaire owner a few hundred million. Baseball's take will have shrunken to meet fans' discretionary spending. That's all. 

The economics will not kill the game. I would offer the assertion that no other game is POPULAR enough to be played, to adequate attendance, 6 days a week, ESPECIALLY in baseball's apecial season, summer, when no other game can even be played, beside soccer. And soccer especially in the US will never replace baseball. It doesn't even replace baseball in countries where there is nothing else BUT soccer!

As the years go by and the old like me (63) die off, we will be replaced by other then-oldsters, now 30 and 10.  The slower game is for those who age their way into appreciation of it. You may not have learned to appreciate this fact yet,m if ever.

Whether national contracts will disappear altogether---they won't---so long as enough local interest exists, no matter the state of the economy, the game will be played.  I have watched my oldest child, now 26, go from disdaining the game to really loving it, in part because her boyfriend does. They have their own favorite team they follow. As they age, they will appreciate their allegiance more.  Ask any fan who is now old when they started really watching, and attending spring training, and the like. It's as they age. That's how it works, that's how it stays extant. Screw the demographics, they do not tell the end of the story. And the economics always adjust to the availability of spending money. I haveno worry baseball will be around and loved way off into the future. I know too many people way younger than me who have discovered they love it. In LA in particualr, baseball is moving away from the Northeast into the new center of the baseball universe hereabouts, That switch is bolstering new allegiances atop the old which will remain, tho a little diminished. Baseball is evolving, and because of it will survive. 

DemBoyz213
DemBoyz213

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jkkdistrict
jkkdistrict

How is Willie Wilson batting in the bottom of the ninth in Philadelphia?

louispfreely
louispfreely

I subscribe to MLB.tv and use a VPN to get around the blackout to watch Dodger games.  I know a bunch of other guys who do the same thing.  We ain't showing up on your stats. 

Rhoberly Gillon
Rhoberly Gillon

I do not like this at all! Unfair, I don't watch sports, and I don't care at all about them

Ed Kim
Ed Kim

Greed. But maybe it will be like a house. Buy something you can barely afford and hope you financially "grown into it." I haven't been able to take a close look at the numbers so I don't know if "growing into it" is possible.

apalemick
apalemick

Most everyone I know watches online now.

abramsrl
abramsrl

Steroids made for big players and big ratings.

pizzmoe
pizzmoe

@jkkdistrict Good observation!  He most certainly did not bat in the bottom of the 9th, but it made the story more dramatic, right? Makes you wonder what other facts were fudged

NativeAngeleno
NativeAngeleno

@Rhoberly Gillon Why are you reading this?!

Overwhelm your congressman into passing a law that forces cable and satellite to de-bundle your costs. Until you do that, stop whining about it.

 
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