Tuesday, November 14, 2006
If the Associated Press and the Yomiuri Shimbun are correct, the Sox bid $51.1 million for D-Mat and…
* “the Red Sox minimum contract offer must at least equal the value of the bid to Seibu”
* Scott Boras will demand a contract three years or less
…then, the Sox will need $47 million or about $1.57 million per Matsuzaka start in Japanese revenue next year to for this deal to breakeven in terms of only cash flow. That ain’t gonna happen folks.
The Sox are going to get that kind of money out of NESN in the form of monthly subscriber fees paid by Comcast and the other cable providers. It is a hidden cost to Red Sox Nation unlike raising ticket prices.
Cable providers pay NESN a monthly fee per subscriber. Since YES was $2 a month per subscriber back in 2003, NESN has to be charging the same rate at this point. After covering marketing and overhead cost, we - BASIC cable customers - likely pay at least $2.50 a month to watch NESN and the Sox. With 3.0 million subscribers, NESN brings in $90 million annually before any advertising or sponsorship revenue.
Since moving nearly all of the Sox games to NESN, it has given the Olde Towne Team a near monopoly on the type of media most fans stay in touch with our summer love. (I will not even get into the techie stuff - HD, MLB.tv, iTV that complicates the situation and is not significant.) Like most monopolies without government oversight, NESN can reasonably increase rates without any significant negative consequences. Comcast and others just passes the increase cost onto us and we have not much choice but to pay the man. It is or more appropriately was our money Theo and the trio are spending.