Dodgers TV Deal Explained: Is MLB Giving Them Special Treatment?

The Los Angeles Dodgers just made another splash — a $240 million commitment to Kyle Tucker. This move does more than stack their already loaded roster.

It’s kicked up an old debate in Major League Baseball. People are talking (again) about competitive balance, TV revenue, and whether the Dodgers still enjoy a unique financial edge from a controversial settlement more than a decade ago.

The Origin of the Dodgers’ TV Revenue Advantage

To see why every major Dodgers signing stirs up outrage, you’ve got to rewind to 2011. Back then, owner Frank McCourt tried to land a huge local TV extension with Fox Sports, reportedly worth $3 billion.

Major League Baseball shot down the deal. They said it wasn’t in the league’s best interests.

McCourt’s next move? He put the franchise into bankruptcy, which led to a court-supervised sale. MLB, trying to protect its long-term financial stake, made a settlement that would end up fueling the Dodgers’ financial firepower.

A Settlement That Changed the Math

In the agreement, MLB agreed to value the Dodgers’ local TV rights using the rejected Fox deal, not the open market. That artificially lowered the “fair-market value” used to figure out how much local revenue the Dodgers needed to share with the league.

This became a huge break for the franchise.

Guggenheim’s Purchase and the Time Warner Windfall

When Guggenheim Baseball Management bought the Dodgers for $2.15 billion, they pointed to that MLB settlement as a big reason the deal made sense. Turns out, they were right.

By 2013, the Dodgers sold their local TV rights to Time Warner Cable for a jaw-dropping $8.35 billion. At the time, it was the richest local TV deal in sports history.

Why Revenue Sharing Never Fully Caught Up

Because of the earlier settlement, MLB first calculated its share of the Dodgers’ TV money based on an $84 million annual baseline. Later, they bumped that up to about $130 million, but it still didn’t match the real value.

Even as MLB’s share of local revenue rose from 34% to 48%, the Dodgers kept tens of millions of dollars each year that would’ve gone to smaller-market teams.

SportsNet LA and Long-Term Stability

These days, the Dodgers’ TV setup is the envy of the league. Their current SportsNet LA deal averages around $334 million per year and could top $500 million annually by 2038.

While other franchises scramble as regional sports network values drop, the Dodgers sit in a surprisingly secure spot.

Ownership and Distribution Matter

The Dodgers basically own SportsNet LA through AMP. Their distribution deal with Charter — a company worth about $55 billion — shields them from the chaos in other markets.

That kind of stability lets Los Angeles chase elite talent year after year. Meanwhile, rivals often struggle to keep their payrolls flexible.

What Comes Next for MLB and the Dodgers

The future isn’t guaranteed to stay this rosy. MLB has said it wants to centralize broadcast rights as soon as 2028, aiming for a league-wide streaming service.

That plan would force teams to give up their local TV rights. Will the Dodgers fight it? Hard to say, but it’s bound to get interesting.

The Dodgers Hold the Leverage

Any proposal like this would probably come with big demands from the Dodgers. Their local TV deal is one of the most valuable in all of sports.

Concessions—whether money or structural changes—seem pretty much unavoidable.

Labor tensions are bubbling up. Collective bargaining is on the way, and owners keep pushing for a salary cap.

That could even lead to another work stoppage, which nobody really wants.

For now, the Dodgers hold all the cards. Still, as MLB grapples with revenue sharing and media shakeups, the way Los Angeles has built its powerhouse could be in for a real challenge soon.

 
Here is the source article for this story: Q&A: What’s the deal with the Dodgers’ TV deal? Is MLB giving them special treatment?