Rich television rights money is changing the nature of sports, especially for baseball. Big financial TV deals are creating a huge financial disparity among the 30 Major League Baseball franchises, where rich teams like the Los Angeles Dodgers can now spend close to $500 million on yearly salaries, while, for instance, the Miami Marlins have a payroll of just $70 million. Similarly, the New York Mets pay out $400 million a year, while the Chicago White Sox’s payroll is $90 million.
In 2013 the Dodgers signed a 25-year, $8.35 billion deal with Time Warner Cable (now Charter Spectrum), and the Mets have an $85 million a year deal with SportsNet New York (SNY) up until 2035. These rights are in addition to the national license negotiated by the League.
The discrepancy between teams is blamed on the lack of a ceiling for players’ pay, which is in place at other U.S. leagues. Baseball’s pay cap is opposed by the players’ union because it is considered against free market.
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