Dodgers $1 billion: The owners of the Los Angeles Dodgers might lose $1 billion from higher revenue-sharing payments in relation to its television rights deal, reported the New York Post.
Guggenheim Baseball Management will be forced to rework a 25-year-long, $7 billion deal with Time Warner Cable, reported the Post, citing three unnamed sources close to the owners.
Guggenheim might have to hand over $130 million per year to Major League Baseball for the revenue-sharing agreement. The firm had anticipated it costing $85 million per year.
The Post noted that the higher payments could curb Guggenheim’s ability to pay off its debt caused by the 2012 purchase of the Dodgers for $2.12 billion.
Other sources told the paper that Guggenheim is prepared to hand over the new amount under a new deal.
Major League Baseball objected to the Dodgers-Time Warner deal because much of the $7 billion was guaranteed despite whether or not regional sports networks performed badly.
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