Just signed a 20 year $7 billion TV contract with Time Warner...

That's $350 million a year...

I'm assuming the Angels aren't going to get as good a deal (L.A, vs. Orange County), but maybe $250 million per year...

The price to play, just went up a lot...

The soft cap will limit some of the spending. Wishful thinking says these TV contracts will lower ticket prices and more importantly, beer prices.

i agree henchmen: wishful thinking...

Sheesh... that isn't even "wishful" thinking... that's a pipe dream. lol

Once prices go up... from there, they only go up more.

Payroll worry? Nor do the Angels. LAA get better. Rangers get older & gimpier.
Onward to 90 W's?

Makes the FO look a lot smarter, not throwing it's future prospects at teams for 30+ aged players when the upside with development for our young guys can have the same ceiling. Not much of a proponent for having a roster full of hired guns-it works less often than it fails. I like good team chemistry and the kids brought through the system have the same experiences together and are already part of an extended family.

I don't think "making payroll" was ever a problem with any team I do however think the cap is going to screw a lot of these teams that over spend. Heck even the Yankees want to get under the cap! I think LAA is going to be really pissed off at Depoto (sp?) in a couple of yrs with both Hammy and Pujols killing there cap! and although we think the dodgers screwed themselves on Grienkies contract but if he stays healthy he'll opt out and the dodgers ar looking good again (cap wise).

I'm with Porcurion build the farm and let the kids play!

hey joe, with them (LAD) rolling in 350m/year from their tv deal alone, why would they need to worry about the luxury tax? that's the point of this thread

they could have a $300m payroll and only need to pay $55m tax maximum (55 being after 3 years, before that it's much less)

Flapjack,

You're assuming all ownership groups are will to "waste" money by paying upwards of 42.5% in taxes for the amount over the cap. I'd say a $55M tax bill (just for paying too much in salary, not including actual Federal amounts) isn't something any group of investors will be OK with.

The owners got exactly what they wanted with the soft cap. Leeway to spend, but also enough penalties to justify keeping player contracts at a "reasonable" level. Like everything else smart investors do, this was a move to make more money. They aren't going to negate those savings by cutting a check to the Commish's office.

Jesus H. Christ I am in the wrong business... thank God and Josh Hamilton for the salary cap!

If you ever planned on being an agent, now might be a decent time.

Don't forget, there is (limited) revenue sharing. So the Dodgers will have to share a portion of that TV deal. Probably somewhere between 30%.

This article has a good overview on it. Skip down a bit.

^^^Sorry meant to say somewhere between 34% and 48%, some of which will go right back to them though^^^

Do we know when and how much $$ the Rangers TV deal is going to be?

Most accounts I've read say it's for 20 years, and that it's for either $1.6 billion or 3 billion.

Joey talked about this a year ago, and yet I've heard nothing authoritative on the matter since.

@Andy, I asked the Ranger's CFO about its overall value last year when I met her, and she very strongly said she could not discuss the details. I suspect we won't know until the deal actually kicks in, if ever.