BAM!

I’m starting to think MLBAM is the greatest company ever created.

The Walt Disney Company announced that it has agreed to purchase the majority stake in BAMTech, the digital media company spun off from MLB Advanced Media.

Disney had already purchased a 33% stake in BAMTech, in two installments totaling $1 billion, and under that agreement it had an option to acquire a majority stake over several years. Disney will now acquire an additional 42% stake, for $1.58 billion. Major League Baseball and its 30 team owners will retain 15% of the company, with other partners such as the NHL retaining minority interests.

Basically, MLBAM developed an excellent streaming technology because no one else had done it. That turned out to be much more valuable than all the fantasy rights they lost. They are doing the right thing here, selling the tech to experts in broadcast media, while retaining a very lucrative dividend for the team owners. Well done.

There is no longer an excuse for small market teams to complain about not being able to afford great players. Do the Padres finally want to win a World Series? Go buy the players. Do the Nationals want to keep Bryce Harper? Here’s $50 million a year. There is no longer the need for the asinine rules that keep you players relatively poor; no need for the draft or a six year reserve clause. Let all the players be free to play where they want for the money they can negotiate. The playing field among teams is going to be as level as it will ever be.

from baseballmusings.com http://ift.tt/2vELhCz