La Velle's 3-2 Pitch: Three observations and two predictions on Sundays.
. . .
It's tough being a Twins fan at the moment. There's no television deal for next season and there have been no impactful roster moves by a team that won the American League Central in 2023.
As temperatures drop into the single digits, fans need reasons to look ahead to spring training, which begins next month in sunny and warm Florida. Instead, everyone is waiting to see how this mess with the Diamond Sports Group, parent company of the Bally Sports networks, plays out.
I'm here to offer reasons to remain optimistic, for the short- and long-term. Diamond's bankruptcy is one reason Major League Baseball is looking to change how local television revenue is being distributed.
A hearing scheduled for last Wednesday in U.S. bankruptcy court in Texas was postponed 10 days to next Friday. It's being viewed as a sign that the sides are closing in on a settlement. That could mean the Twins would be on Bally Sports North for one more season while a long-term plan is constructed. Diamond has contracts with 11 other teams, so the hot stove league has cooled off because many teams are unsure of what television revenue they are getting, or not getting, to boost their spending power. The Twins are exploring other options if the Bally's option falls apart. Don't worry. Clarity is coming.
Here's the bigger picture. While national television revenue — from ESPN, Fox, etc. — is distributed equally among teams, local television revenue is not. That disparity gives larger markets an advantage from a payroll standpoint. For instance, the Twins received $54.8 million from their Bally deal last season. They anticipate a drop in that revenue this season, which will led to them reduce payroll by around $25 million. The World Series champion Texas Rangers reportedly made about $111 million from their local TV deal.
Those numbers were learned through court proceedings. Just think what the Yankees and Dodgers, who own their own television networks, are pulling in.