Big news: The Chicago Cubs and Sinclair Broadcast Group are partnering to launch a new network that will exclusively broadcast the team’s games.
The new network is launching in 2020 and will mark the first time in 70+ years (1948) that at least a portion of the Cubs games will not air on local broadcast TV.
Current deal: NBC Sports Chicago gets $4.20/subscriber/month which is split between the Bulls, Cubs, White Sox, and Blackhawks.
New deal: The new network plans to charge ≈ $5.00/subscriber/month.
Flashback #1: Sources: Cubs To Go Own Way In TV Venture
The Cubs will get paid $750K per game next year for TV rights.
How much more could they make? How about 3X more! The Dodgers make ≈$2M per game in local broadcast rights through SportsNet LA.
Flashback #2: The bids are in for RSN sale
Monthly subscriber fees for Fox’s priciest RSNs:
1) YES Network — $6.37
2) Fox Sports Detroit — $5.84
3) Fox Sports Arizona — $4.84
4) Fox Sports Ohio — $4.07
5) Fox Sports Wisconsin — $3.22
The Dodgers are guaranteed $8.35B over 25 years from Charter Communications.
That breaks down to an average of $334M/year!
In order to break even, the Network needs to make $1,988 from every pay-TV subscriber in the region or an average of $80/subscriber/year.
More deals: Sinclair Broadcast Group is also in the running for the 22 RSNs that Major League Baseball is selling.