Dodgers’ New TV Deal Could Impact Cubs’ Asking Price

Economics is a funny thing.

Often times the market value of a any commodity can be impacted by factors that are far beyond the control of the team of interest. These extraneous elements can range from value inflation to lack of performance to current market size.

Frankly, when it comes to the price of anything in baseball, all bets are off.

While players are often at the center of all these dollar talks, sometimes other commodities can come in to play. Cubs fans know this well from a recent occurrence when Theo Epstein and Jed Hoyer were both given to the Cubs for an undisclosed compensation which was to be determined later.

June 27, 2012; Chicago, IL, USA; Television actress Jane Lynch sings during the seventh inning stretch of the game between the Chicago Cubs and New York Mets at Wrigley Field. Mandatory Credit: David Banks-US PRESSWIRE

At the time, Epstein was expected to haul the Red Sox a healthy return, but as time drew on, only Chris Carpenter was to be sent to Bean Town as compensation talks dragged long. The Padres ended up getting the worst return of all for Hoyer: nothing.

The main catalyst in both those situations was time, and both ended up in the Cubs’ favor, driving the relative value of both men downwards. Funny how those outside factors can impact the value of something so much.

In the same respect, Jon Heyman tweeted today that the Dodgers new TV deal is expected to be valued at $6-$7 BILLION dollars.

Take a minute to breath and wipe the drool from your face, Cubs fans.

The Cubs will need to re-up a TV contract in 2 years when their agreement with WGN expires. Considering how lucrative the Dodgers contract will be, it can only spell a massive payday for the Cubs.

Keep in mind, it would be absolutely insane for anyone to pay $6-$7 billion for the Cubs’ broadcasting rights. LA is a much larger market with greater competition from broadcasters which drives the overall value of the product up. The Cubs’ rights would likely be worth closer to $2.5-$4 billion depending on length, competition, and the economy itself in 2014.

Regardless of the advantages that the Dodgers possess, it’s still fantastic news for the Cubs as it acts as a economic dry run for any type of TV deal which could then artificially inflate the asking price of the Cubs’ contract.

More cash equals more power in the long term, and that’s something we can all agree is a good thing for the Cubs.