After the fall-out from CBS' financial problems from their four-year-long television contract with Major League Baseball, MLB decided to go into the business of producing the telecasts themselves. After a four-year hiatus, ABC and NBC returned to Major League Baseball under the umbrella of a revenue sharing venture called "The Baseball Network."
Under a six-year plan, Major League Baseball was intended to receive 85% of the first $140 million in advertising revenue (or 87.5% of advertising revenues and corporate sponsorship from the games until sales top a specified level), 50% of the next $30 million, and 80% of any additional money. Prior to this, Major League Baseball was projected to take a projected 55% cut in rights fees and receive a typical rights fee from the networks. When compared to the previous TV deal with CBS, The Baseball Network was supposed to bring in 50% less of the broadcasting revenue. The advertisers were reportedly excited about the arrangement with The Baseball Network because the new package included several changes intended to boost ratings, especially among younger viewers.
Arranging broadcasts through The Baseball Network seemed, on the surface, to benefit NBC and ABC since it gave them a monopoly on broadcasting Major League Baseball. It also stood to benefit the networks because they reduced the risk associated with purchasing the broadcast rights outright. NBC and ABC attempted to create a loss-free environment for each other.
After NBC's coverage of the 1994 All-Star Game was complete, NBC was scheduled to televise six regular season games on Fridays or Saturdays in prime time. The networks had exclusive rights for the 12 regular season dates, in that no regional or national cable service or over-the-air broadcaster may telecast an MLB game on those dates. Baseball Night in America usually aired up to 14 games based on the viewers' region (affiliates chose games of local interest to carry) as opposed to a traditional coast-to-coast format. ABC would then pick up where NBC left off by televising six more regular season games. The regular season games fell under the Baseball Night in America umbrella which premiered on July 16, 1994.
In even numbered years, NBC would have the rights to the All-Star Game and both League Championship Series while ABC would have the World Series and newly created Division Series. In odd numbered years the postseason and All-Star Game television rights were supposed to alternate.
The long term plans for The Baseball Network crumbled when the players went on strike on August 12, 1994 (thus forcing the cancellation of the World Series). In July 1995, ABC and NBC, who wound up having to share the duties of televising the 1995 World Series as a way to recoup (with ABC broadcasting Games 1, 4, and 5 and NBC broadcasting Games 2, 3, and 6), announced that they were opting out of their agreement with Major League Baseball. Both networks figured that as the delayed 1995 baseball season opened without a labor agreement, there was no guarantee against another strike. Others would argue that a primary reason for its failure was its abandoning of localized markets in favor of more lucrative and stable advertising contracts afforded by turning to a national model of broadcasting. Both networks soon publicly vowed to cut all ties with Major League Baseball for the remainder of the 20th century.
In the end, the venture would lose $95 million in advertising and nearly $500 million in national and local spending.
Also in 1994, ESPN renewed its baseball contract for six years (through the 1999 season). The new deal was worth $42.5 million per year and $255 million overall. The deal was ultimately voided after the 1995 season and ESPN was pretty much forced to restructure their contract.
Under a six-year plan, Major League Baseball was intended to receive 85% of the first $140 million in advertising revenue (or 87.5% of advertising revenues and corporate sponsorship from the games until sales top a specified level), 50% of the next $30 million, and 80% of any additional money. Prior to this, Major League Baseball was projected to take a projected 55% cut in rights fees and receive a typical rights fee from the networks. When compared to the previous TV deal with CBS, The Baseball Network was supposed to bring in 50% less of the broadcasting revenue. The advertisers were reportedly excited about the arrangement with The Baseball Network because the new package included several changes intended to boost ratings, especially among younger viewers.
Arranging broadcasts through The Baseball Network seemed, on the surface, to benefit NBC and ABC since it gave them a monopoly on broadcasting Major League Baseball. It also stood to benefit the networks because they reduced the risk associated with purchasing the broadcast rights outright. NBC and ABC attempted to create a loss-free environment for each other.
After NBC's coverage of the 1994 All-Star Game was complete, NBC was scheduled to televise six regular season games on Fridays or Saturdays in prime time. The networks had exclusive rights for the 12 regular season dates, in that no regional or national cable service or over-the-air broadcaster may telecast an MLB game on those dates. Baseball Night in America usually aired up to 14 games based on the viewers' region (affiliates chose games of local interest to carry) as opposed to a traditional coast-to-coast format. ABC would then pick up where NBC left off by televising six more regular season games. The regular season games fell under the Baseball Night in America umbrella which premiered on July 16, 1994.
In even numbered years, NBC would have the rights to the All-Star Game and both League Championship Series while ABC would have the World Series and newly created Division Series. In odd numbered years the postseason and All-Star Game television rights were supposed to alternate.
The long term plans for The Baseball Network crumbled when the players went on strike on August 12, 1994 (thus forcing the cancellation of the World Series). In July 1995, ABC and NBC, who wound up having to share the duties of televising the 1995 World Series as a way to recoup (with ABC broadcasting Games 1, 4, and 5 and NBC broadcasting Games 2, 3, and 6), announced that they were opting out of their agreement with Major League Baseball. Both networks figured that as the delayed 1995 baseball season opened without a labor agreement, there was no guarantee against another strike. Others would argue that a primary reason for its failure was its abandoning of localized markets in favor of more lucrative and stable advertising contracts afforded by turning to a national model of broadcasting. Both networks soon publicly vowed to cut all ties with Major League Baseball for the remainder of the 20th century.
In the end, the venture would lose $95 million in advertising and nearly $500 million in national and local spending.
Also in 1994, ESPN renewed its baseball contract for six years (through the 1999 season). The new deal was worth $42.5 million per year and $255 million overall. The deal was ultimately voided after the 1995 season and ESPN was pretty much forced to restructure their contract.
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