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Time Warner Cable is expected to lose $1 billion in a bum Dodgers TV deal

By SI Wire
March 24, 2015

Time Warner Cable is expected to lose $1 billion in its Los Angeles Dodgers television deal as a result of a write-down, the New York Post reported Tuesday.

Time Warner had required other cable distributors to pay $5 per subscriber month in fees to own the right to broadcast the games. However, cable companies like Charter Communications and satellite providers like DirectTV have refused to pay the fee. The Post estimates, through sources, that market value for the channel is close to $3 per subscriber per month.

Assuming Time Warner writes down the fee to around that amount, the company stands to lose nearly $1 billion in revenue over the live of the 25-year contract. Time Warner paid the Dodgers' ownership group, Guggenhiem Partners, $8.35 billion for the rights.

• Dodgers fans looking at second season of TV blackout

Verizon Communications, AT&T’s U-verse and Cox Communications have also refused to pay the fee, so only Time Warner Cable subscribers, along with those serviced by the tiny Bright House Networks, can see Dodgers games legally in the Los Angeles area.

A source told The Post that unless the deal closes, there will not be another Dodgers season broadcast on any network other than Time Warner Cable.

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