Telecasting nonstop programming from Kyle Schwarber‘s tape-measure home run to Ron Santo clicking his heels after victories is a vision that runs deep in the minds of Cubs executives.
“We look forward to the day we have the rights to start our own channel,” Chairman Tom Ricketts said recently at the Cubs Convention.
But as profitably tempting as operating their own regional sports channel may be — as the Yankees can attest through the YES Network — there are many variables that have the Cubs keeping an open mind for 2020 when they can control television rights for their games.
“We’re studying it to death to look at pros and cons and weigh the risks of launching on our own or launching with a partner,” Crane Kenney, the Cubs’ business president, said.
The structuring of contracts for free agents Jason Heyward and Ben Zobrist suggests the Cubs will have deeper financial pockets in 2019 and beyond, which also will allow them to retain talents such as Kris Bryant, Kyle Schwarber and Addison Russell in their arbitration years.
“The money is still out there,” media analyst Jeff Kagan said. “(The Cubs) brand is recognized around the country, and now they’re viewed as winners.”
But Kenney realizes that grossing millions of dollars that can bankroll the player payroll easily doesn’t guarantee a new contract will be a success. Because of distribution issues, less than 40 percent of the Southern California audience has TV access to Dodgers games.
And the Pacific-12 Network hasn’t reached a deal with DirecTV to carry its football games for the last four seasons.
Kenney acknowledged that the Cubs are continuing to negotiate with Comcast SportsNet Chicago, in which they hold a 20 percent ownership stake. Two years ago, the Phillies and their local Comcast affiliate agreed to a 25-year, $2.5 billion contract.
“(But) as we have conversations, which are on-going with all sorts of partners, if somebody offers us something dramatically better, we’ll of course look at it,” Kenney said. “But what we control is the idea of launching our own network in 2019.”
But the biggest decision, should the Cubs choose their own network, is selecting the right business partner. The YES Network has achieved success through the 80 percent ownership backing of 21st Century Fox. The Dodgers’ 25-year, $8.35 billion contract is considered an anomaly because Time Warner has absorbed all the financial risks.
Kenney said the Cubs would need a two-year setup before televising games in 2020 if they choose to operate their own channel. But they won’t be rushed into making a deal soon.
“Maybe aside from changing (baseball) leadership, this is the biggest decision we’ll have,” Ricketts said. “So we have to get it right.”
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