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At the New York Times this week, Kevin Draper wrote about the television ratings that are way down for many of the sports playing during the coronavirus pandemic. The short version of the conclusion reached within is that there is little reason to panic just yet because it’s unclear exactly why Americans aren’t watching sports on TV like they usually do, and that’s a reasonable take. However, maybe there is a reason to be on alert when it comes to how Major League Baseball will inevitably react to lower ratings and what that could mean going forward for their massive television contracts.
Back in the 1980s, MLB signed a split television contract with two major networks, ABC and NBC, that would run between 1984 and 1989 and cover weekly national broadcasts and the World Series. The deal was a massive victory for MLB at the time, as they initially valued the entirety of what they were offering over five years at $900 million, but then managed to convince ABC and NBC to each take half by stretching the deal to six years, and in turn ended up pulling in $1.125 billion in 1983 dollars. Today, that’s the equivalent of a little under $3 billion.
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