Wednesday, November 23, 2011

The Los Angeles Dodgers Find Themselves in a Media Rights Bind

A recent issue regarding media rights in sports has been with the baseball team, The Los Angeles Dodgers. The LA Dodgers are suing Fox over the sale of media rights. The lawsuit stated that Fox Sports, whom broadcasts all Dodger games violated an agreement they had together protecting the Dodgers and their bankruptcy situation. The Dodgers have a pending deal with the MLB in regards to the Dodgers' media rights. After agreeing to sell the Dodger franchise, they have found themselves in a world-wind of mess. Beginning in the year 2014 and on, the Dodger's media rights will be up for sale. This soon to be settlement with the MLB is stated by Fox to be breaching their contract with them. Fox believed the Dodgers should not be selling their media rights. 
 
The Dodgers requested of the court a restraining order on Fox. This would be to protect them from messing up any media rights deals and issues.  And after suing Fox Sports in bankruptcy court this month, the initial hearing on if this immediate situation was to be dismissed or not was canceled. Reuters cites that the Dodgers have been trying to get negotiations on the sale of the team going while the Fox situation is basically on the back burner. The Dodgers are offering to sell the entire team including their media rights, which is why they prefer to make a concrete deal with the MLB before Fox Sports takes advantage of their situation. 

I think that the Dodgers should not completely abandon Fox in their sale of media rights. Being they apparently have a stringent contract, I think there should not only be a deal made with the MLB but with Fox as well. The Dodgers can not assume they can abandon their legal commitments just because they are in a very bad situation currently business-wise. If the appropriate time is taken, and parties do not try to avoid each other, I think that a solution should be relatively smooth. I am sure the Dodgers want their media rights in the right hands at the end of the day. 


Sources:

http://www.reuters.com/article/2011/11/21/us-dodgers-idUSTRE7AK2EM20111121

http://online.wsj.com/article/SB10001424052970203699404577042220194179562.html

http://www.wgal.com/r/29827191/detail.html

No comments:

Post a Comment