Members of the St. Louis Cardinals’ extended community anxious over the impending contract negotiations between the club and superstar first baseman Albert Pujols have come up with some interesting ideas.
For example, a group is planning a rally to show their support for the two sides to come to terms. Other suggestions are intended to “help” the club identify additional revenue sources, which they could then deploy in paying Pujols.
One proposal is for the Cardinals to create their own regional television network in the image of the Yankees’ wildly successful YES Network. Unfortunately, any such change would not occur quickly enough to impact the current situation.
First of all, there are major market differences between St. Louis and New York. In fact, St. Louis ranks 24th of the 30 metro markets using Nielsen DMA data, according to team president Bill DeWitt III. While he acknowledged that does not take into account “outer markets” where the Cardinals are regionally strong, it wouldn’t close the gap with The Big Apple.
Yet there is clearly considerable money to be made in team broadcast rights.
Last fall, the Texas Rangers inked a landmark 20-year contract extension with FOX Sports Southwest that takes effect in 2015. The total value of the deal is said to be a whopping $1.6 billion.
That $80 million average per season is a huge increase over the $45 million the club reportedly receives under the current contact. An additional $35 million each and every year could buy a lot of anything, including the services of several baseball players in their prime.
With the Texas situation firmly in mind, during the recent Winter Warm-Up I asked DeWitt III if conditions could be right for a similar windfall for his club.
DeWitt characterized the Texas situation as “the perfect storm” with a change in team leadership due to the previous owner who “had overly-leveraged the franchise and got into trouble that probably started with the A-Rod contract. I won’t draw any parallels,” he quipped. DeWitt also observed the Rangers cable TV footprint ranges from Arlington to Dallas to Houston.
One major reason these conditions won’t be developing soon in St. Louis is that the Cardinals have seven years remaining in their current contract with FOX Sports Midwest. The deal had been extended prior to the 2007 season.
A provision in the revised agreement that was picked up stipulates that starting in 2011, all Cardinals games not telecast nationally, about 150, will be found exclusively on the regional sports network. Available via cable and satellite, FOX Sports Midwest was rated number one among all such networks across MLB during the 2010 season. Free, on-air Sunday games, most recently shown on KSDK and a regional network, have likely disappeared forever, DeWitt acknowledged.
The team president further pointed out that there are risks in long-term deals like the one made in Texas that might limit the Cardinals’ flexibility down the road.
“To get into an extension (with FOX Sports Midwest) might be a bit premature but we are looking at everything that is happening in the industry,” DeWitt said. “Some clubs have extended very long into the future – 20-year deals. The Oakland A’s have done that (with Comcast SportsNet) and a few others.”
The Cardinals don’t seem to see a clear benefit in the trend.
“We are kind of scratching our heads thinking about that because… is that good for the club? Or is it risky if it is one of those things where sure, you might be able to lock in some big increases and maybe even bump up revenues and payrolls and so forth, but are you limiting your flexibility and options for the future – perhaps do your own cable network of things of that nature?” DeWitt asked.
With at least seven years of the status quo ahead, don’t expect incremental cash to begin flowing in to fund Pujols’ impending contract – unless a tremendous portion of his money is deferred.
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Seems slightly contradictory. On one hand the article starts out by trying to make the case that the Cardinal’s market most likely isn’t big enough to support its own TV network. while at the end the Cardinals are saying they dont want to lock themselves in long term (with an extension) because in the future they might want to do their own TV network.
However, if the Cards aren’t talking to their TV guys, their radio guys, concessionaires and any other long term partners with regard to the Pujols contract they as smart as I’d think (which is a pretty low bar already) or they really dont care whether they sign Pujols or not. Contracts are renegotiated all the time when it is to the benefit of both parties and there is no doubt that signing Pujols long term benefits those other than the Cardinals. There are plenty of guarantees the Cards to give up on the low end (raised guranteed ratings, etc.) that would also benefit Fox if they are willing to pay more for the assurance that Pujols will be on the field.
Again, either DeWitt is playing it close to the vest or he is confirming my suspicions about the business sense of people involved in baseball.
Perhaps my ordering contributed to the confusion. The market size points are more to indicate that a Yankees-size deal isn’t likely. DeWitt noted the Texas situation was large as well, partially because FOX SW had already lost the Astros and that made them even more motivated. That and the fact the Rangers deal apparently covers both the Dallas and Houston markets.
I don’t know if the Cardinals can be accused of poor business sense if they are reluctant to make a cable deal eight years and farther out into the future. As DeWitt hinted, they may decide to do something different later on.
As you note, there is nothing that would preclude them from trying to get more money from their current deal if Pujols is re-signed, but that is a chicken and egg situation now. Further, FSM might not be any more motivated to give up their current terms than the Cardinals were motivated to tear up Pujols’ current contract just because he was underpaid for the past three or four years.
Unless the current FSM deal is giving the Cards an extremely large cut above certain ratings levels FSM would be silly not to be motivated. Do they think ratings (and ad revenue, and subscriptions, and sponsorships, and on, and on) are going to be as high if Pujols isn’t on the team?
Are you carrying some water here Brian??????????
The “picture” has now been up a week……….precluding any new articles by Strauss or Gordon or Bernie………..by precedent………….. and yet, JS seems to be very well informed as to negation activities………..
I am really curious as to what anyone thinks about this “media control issue” as a tactic….. does it actually define the dynamic of those talks/silences????????…………..Lozano could care less….a worried AP…..peaking maybe…..what is he suppose to feel, being denied the love? Its clear that BD has allot of respect for AP………….intelligence………..
A week is a long time for a photo to be up, especially a picture that has no relationship at all to the story. I wasn’t going to mention it anymore as I didn’t think anyone else thought it worth a raised eyebrow. The subliminal PR theory didn’t get much traction.
I can’t imagine any reason for DBW III to express any optimism, or even acknowledge, any possible increased revenue. So I wouldn’t rule out some sort of big money media deal. The Cards are a big draw nationally and BDW is trying to grow the brand.
Last winter the Cards where on the national sports media radar most of the winter, and its the same again this year. The plant with Olney was picked up everywhere. I read a rehash on NESN yesterday.
But of course, we don’t want to become the Washington Generals of MLB, getting our pants pulled down on national TV for a living.
The Cards are a big draw nationally and BDW is trying to grow the brand.”
MLB/Fox/BD……….. = 1……. BB ……… AP is the goat here……… they will hold him up as they work the body……… he is the new poster boy……
RC will vouch for this………if you wanted to get any mileage out of AP on the field….you don’t hire TLR to do it………… BD is playing a Win/Win and he can do that because it isn’t about baseball.
AP will be tamed by the market one way or another…………
Nope WC. I know you will not believe this, but in all my years of covering the Cardinals, no one has ever asked me to run a story or even suggested it. As I said above, I asked DeWitt III a direct question and to his credit, he did not dodge it. There were no other reporters in the room as far as I know, so I have written a number of articles about his remarks, starting with the “We’re going to put an offer out there that will be the biggest contract in Cardinal history” article two weeks ago. I also posted pieces about Ballpark Village and a new Cardinals Hall of Fame from that same discussion. Ahead, I am going to run another DeWitt III summary here in which he discusses some of the team’s finances. Caymans did not come up, though. Sorry!
On the radio silence point, I understand why they are doing it. If I was them, I would try to do the same thing. The media doesn’t like it, and neither do many impatient fans. This too shall pass.
“We’re going to put an offer out there that will be the biggest contract in Cardinal history” article two weeks ago.
That statement was made to you alone? By BD III? Did he intend it as a “press release”? Could this have been an unsupported position, not part of the BD Jr plan????????? That would be a radical adjustment to the “game” in my opinion……… BDIII has made mistakes in the past, and been chastised………. “dry powder” is still with us………
It was made in a room with 100 people, but I may be the only one who caught the apparent significance of it.
If I am not mistaken, it was DeWitt Jr. who made the original “dry powder” statement back in 2005.
So it was not a podium pronouncement……..?
BD III got a serious shutdown at one point..he was silent for months… he was put in a place to absorb some of the flak about their lack of spending going into 2008 as I recall, in the Tony/ Dave rants for some players ……… it was obviously a statement he had heard in meeting he had been attending………… Papa did mention it in covering……….. later if I recall.
Westie, note it is biggest in “Cardinal” history. So they offer Pujols 7 years $150 million. Big deal.
WC, the comments were made from a lectern addressing an audience.
Right CC. The news wasn’t the amount. It was the fact that on January 17, the offer was still being spoken about in future tense.
Add to Joe Strauss’s report of virtually no communication in the last 10-12 days, followed by ‘halting’ communication. Sounds like the historic offer has still not been made.
Thats how I understood it……….. they should announce/leak soon……… its in their best interest to establish a number………..Lozano would be even happier if they didn’t……AP, not so much.
One of these days the P-D will replace angry Albert with either smiling Albert or insulted Albert.
they’ve been reading…….its gone.
They thought it was gone
Nice work on the gravatar, bb. Content and timing both superb.
Thanks for your candor Brian………..I would recommend you do a little research on the demise of the Twins/ Pohlad’s “sports network”……….at the hands Fox Sports, with backing from SLC and other regional powerhouses………. “likely” being compensated for their stand/assistance in their own contract extensions at the time……….. one of the reason you will never know the scope of the extant agreement between Fox/SLC???????? It will eventually come up…:wink:
Yes, I am aware several team-driven regional networks have come and gone. In other markets, like Houston, a competitor, in that case Comcast, won the business.
Tried to come………kicked in the pants gone………. DirectTV / Fox …embargo…….hardball…..Selig deeply involved protecting his market share……….
Hows the weather out there……….. I’ve got to run to the store and get some sunscreen……….
My dog’s bone is out back frozen to the ground. He’s having a time coming up with an answer to that. My snow shovel blew over and is frozen to the ground. Can’t even kick it loose. My dog wizzed on it. So now its frozen to the ground and glazed over with frozen dog wiz. The back gate is frozen shut. The car doors are frozen shut. Right now there is about a 1/4″ of solid ice covered by about 1″ of sleet. As I understand, there should be a good bit of snow and wind shortly. I can’t remember the last time there was a blizzard warning in St. Louis.
Chase lounge, Mike’s hard lemonade (dog piss WC style)………. honey ….thats it, right there……….
Maybe you’d fit in better in Brazil than you think!
I would do fine there. A mans world if I recall…………
The weather is just peachy in the MO Capitol.
http://img17.imageshack.us/my.php?image=z78.mp4
Here are some snippets from an interview of BDII by Joe Strauss, 7/11/2010.
Q: As the trade deadline approaches, you likely are reaching a point of no return regarding your ability to trade Pujols, if you desired. He wouldn’t clear waivers after July 31, and he achieves enough major-league service time to veto any deal after this season. How do you see that in addition to the urgency for negotiating an extension during the upcoming offseason?
BDII: That’s one of the easiest decisions we’ve ever had to make. Would we ever contemplate trading Albert: absolutely not. It’s not even a consideration. The consideration is that he’s got one more year left on his contract beyond the current season. There were some brief conversations during spring training, and it was eventually agreed upon that it wasn’t appropriate to carry talks into this season. I think the word that applies to the upcoming offseason is “optimal.” That’s the best time for us to negotiate something to keep Albert in town for a long time. Those negotiations aren’t easy for a player of Albert’s stature. It remains to be seen what we can do. But we’ll make every effort to see where it goes. I don’t have a crystal ball to say if it can get done in 24 hours or if we would go the entire winter without getting something done. It’s tough. The market can change in either direction.
Q: Team president Bill DeWitt III said publicly last summer that he questioned the club’s ability to retain Pujols if he is set on becoming the game’s highest-paid player. Does that still hold?
BDII: I’d rather not get into all that now. I’m not sure how that was presented. You get into some vague definitions. For instance, how do you define “highest paid”? Is it total dollars, AAV (average annual value)? I don’t want to stake out a position on that. It’s why you negotiate. I know our desire to keep Albert a Cardinal hasn’t changed, and every indication I’ve received is he feels the same way. But obviously there’s a process involved.
And this from a Mozielak interview by BJ Rains on 10/8/2010:
Q: Is the uncertainty with Albert’s long-term future in any way hindering what you guys can do this offseason and will that cause his situation to be a priority?
Mozeliak: “I certainly think it is independent. In terms of is he a priority to keep as a Cardinal, the answer is yes, but when we do that, that will be mutually agreeable as far as when we start talking. I know what it’s likely going to take to sign him and I can put that money in and I can allocate that money in the out years and if we don’t spend it, that means we just have those dollars to do something else.”
The whole Albert situation is absurd really. Thinking about it reminded me of this skit from years ago. Its a hoot.
http://www.youtube.com/watch?v=dFoagC5yGY0
This writer thinks the Cards have the upper hand in the negotiations with Albert
http://www.hardballtimes.com/main/blog_article/the-albert-pujols-contract-why-the-dewitts-will-win/
Not sure how you feel about the writer’s point of view, but suggesting the Cardinals have Pujols backed into a corner seems too strong to me.
Agree that it is probably too strong but I think it is good of the writer to remind us that Pujols also has some incentive to sign before this year starts.
…………………………………………………………………………….
Hate to say this about one of my own gender, but she doesn’t know what she is talking about. Honestly, though I like Pujols as a player, he is amazing to watch, I have never bought in to the image he tried to project. I believe all his pronouncements about wanting to remain a Cardinal and wanting to win and blah blah blah is phoney baloney. It is about the moolah, nothing more. Be the highest paid player in baseball and inflate an already inflated ego.
I haven’t been happy with the way the Cardinals have handled this but I am no more happy with the Pujols camp. A pox on both their houses.
Crdswmn……Here is some reading that gets down right nasty about ol TLR. ha
http://deadspin.com/5748972/the-worst-men-in-sports
I did like the he is a man playing chutes and ladders and thinks its chess.
Which led me to think of this…..
Cue the manager from Bull Durham… you throw the ball, you catch the ball, you hit the ball.. or however it goes.
Funny stuff.
Although the Tigers only made a one-year commitment to Penny, they’re confident enough in his health that they’ve already traded starter Armando Galarraga.
“I was throwing at the end of the year in case we made the playoffs,” he said on a conference call with reporters recently.”
Can you say………..insured……… Detroit isn’t blind………..they are taking a chance? No chance.
Think of how much more difficult the AP stratagem would have been for BD….had we made the playoffs…………. it isn’t about baseball……… Penny never had an incentive to come back and pitch as the team slid………. 2/3 with a 3.24……..he couldn’t win even when he was lights out with our offense….he made a prudent career decision…….BD/Mo did not object. They were covered. Penny has a good year and he does a three year deal somewhere.