Monday, March 08, 2004
REELING IN THE EVIL EMPIRE?
Later this month, three people have the power to significantly reduce the possibility of the MFY topping the $200 million dollar payroll figure. Louis Bechtle, Stanley Sporkin and Richard Aurelio may have more say about the MFY 2005 player salary budget than anyone directly affiliated with MLB. The three make up the arbitration panel that will decide the fate of the Yankees’ YES Network on Cablevision, which has 2.9 million subscribers in the NYC metro area and owned by former Red Sox bidder and Boy George hater, Charlie Dolan.
As Doug Pappas states on his blog,
The big issue is whether YES will air on the expanded basic cable tier, which will force all Cablevision subscribers to pay for it, or as a premium channel which most Cablevision subscribers won't buy. The arbitrators will also determine the price Cablevision must pay for YES, and the length of the contract between YES and Cablevision.
Moreover, if Cablevision wins and is able to move YES to a premium tier, clauses in YES's contracts with other New York-area cable systems will allow these operators to do the same. YES currently collects an average of $2.12 per month for every cable subscriber with expanded basic. If relegated to a premium tier then even at a higher price per customer, its revenues would be likely to fall by 50% or more.
It is estimated that the MFY are operating very close to break even in 2004 with a payroll of $185 million. If the ruling is in the MFY favor resulting in YES airing on the expanded basic cable tier like NESN, than it should increase the MFY revenue from cable operators and player’s payroll. If the panel sides with Cablevision, it will at least make Boy George think twice about adding players because he and his partners will likely be operating at a loss. An experience the MFY organization has probably not dealt with in sometime.
Later this month, three people have the power to significantly reduce the possibility of the MFY topping the $200 million dollar payroll figure. Louis Bechtle, Stanley Sporkin and Richard Aurelio may have more say about the MFY 2005 player salary budget than anyone directly affiliated with MLB. The three make up the arbitration panel that will decide the fate of the Yankees’ YES Network on Cablevision, which has 2.9 million subscribers in the NYC metro area and owned by former Red Sox bidder and Boy George hater, Charlie Dolan.
As Doug Pappas states on his blog,
The big issue is whether YES will air on the expanded basic cable tier, which will force all Cablevision subscribers to pay for it, or as a premium channel which most Cablevision subscribers won't buy. The arbitrators will also determine the price Cablevision must pay for YES, and the length of the contract between YES and Cablevision.
Moreover, if Cablevision wins and is able to move YES to a premium tier, clauses in YES's contracts with other New York-area cable systems will allow these operators to do the same. YES currently collects an average of $2.12 per month for every cable subscriber with expanded basic. If relegated to a premium tier then even at a higher price per customer, its revenues would be likely to fall by 50% or more.
It is estimated that the MFY are operating very close to break even in 2004 with a payroll of $185 million. If the ruling is in the MFY favor resulting in YES airing on the expanded basic cable tier like NESN, than it should increase the MFY revenue from cable operators and player’s payroll. If the panel sides with Cablevision, it will at least make Boy George think twice about adding players because he and his partners will likely be operating at a loss. An experience the MFY organization has probably not dealt with in sometime.
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Thank you - Red Sox!
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