Fox Sports Protests To Dodgers’ Broadcasting Rights Marketing Plan

by San Antonio Attorney

Fox Sports protests on the Los Angeles Dodgers’ proposal to employ Blackstone Group to promote its broadcasting rights that could possibly start a conflict with the biggest supporter of the team’s owner.

Fox Sports is the primary television partner of the Dodgers. In court papers filed on Friday, the broadcaster said that the marketing plan proposed by Blackstone violates the present arrangement to broadcast the games of the baseball team throughout the 2013 Major League Baseball season. In addition, it violates the exclusive negotiation rights of Fox Sports until November 2012.

Fox Sports is owned by News Corp. which is also the owner of The Wall Street Journal.

The employment of Blackstone to promote the media rights of the Dodgers is part of the team’s bankruptcy exit plan. The plan will ensure that the team ownership of Frank McCourt stays intact, while their television partner could be angered by their move.

The Dodgers team has already received in advance the payments for its media rights this year. Moreover, Fox Sports had agreed to a $2.7 billion deal that extends its media rights for another 17 years. It was the agreement that could have helped the Dodgers to avert a bankruptcy filing.

The proposal was rejected by MLB Commissioner Bud Selig because a percentage of a $385 million financing that was included with the contract renewal would only be used for McCourt’s divorce settlement.

The team has not yet formally filed a request with the bankruptcy court to allow it to market its media rights. A court hearing on the Dodgers’ request to employ Blackstone is scheduled on August 16.

If the team’s owner is not able to sell the media rights, he would have to sell the team or part of it. Before the filing of bankruptcy, the Dodger Stadium, its surrounding land, and ticket revenue have already been put up for financing collateral by McCourt.

Leave a Comment

Previous post:

Next post: