In a recent report, Lee outlined how the Dodgers have historically benefited from the revenue-sharing system as a result of the club’s bankruptcy and subsequent sale in 2012. Lee reports that teams typically share about one-third of their local television revenue, but the Dodgers, in the midst of their bankruptcy proceedings in federal court, secured a much more favorable rate of about 10%.
Given the Dodgers have by far the most lucrative local broadcast deal in MLB (a ludicrous $334 million per year), Lee estimates the team could avoid contributing about $66 million per year to the league’s revenue-sharing pool under its special arrangement. That, of course, doesn’t sit well with fans of other clubs, who in recent years have seen the Dodgers buy their way to one of the most stacked rosters in the history of the game.
Previously, it was unknown exactly how long the Dodgers would retain these favorable terms. But Lee revealed in his report, citing a league source, that the agreement goes through 2039, when the Dodgers’ current local broadcast deal expires. In other words, the team’s built-in advantages could benefit them for another 13 years.