Craig Edwards at FanGraphs looks at estimates of the local TV revenue for teams. Market size matters:
Given the number of other variables — like how long ago a team signed its contract, the team’s popularity, its regional appeal, and its ratings — a correlation coefficient of .64 is fairly strong. Especially for the simplicity of the categories utilized on the axes — that is, merely the number of households in the principal market and the 2016 television revenue estimates. Teams and networks make their money on getting their broadcasts to appear within the standard cable lineup and charging a per-subscriber fee, and the result is that more homes means more money to give to teams. And that’s the not only big-market advantage.
Which is why it’s good that entities like MLBAM are providing a balance to the local money. The large amount of money generated by their web presence and streaming services means most teams can still afford some excellent players. Yes, local money makes a difference, but it’s not the killer it was in 1990s.
from baseballmusings.com http://ift.tt/1Ude8TV
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