Cubs TV Deal – Marquee Increases?

I wrote a piece the other day that was virtually unnoticed, and possibly unnecessary (you be the judge). In it I hit on the new Cubs TV deal and the formation of the Marquee Sports Network and some potential issues some will have with it.

In the 24 some odd hours since, costs have become a big concern for some. I personally missed this as I’d pay it if they charged $20 a month per subscriber, but there’s some out there with real budgetary concerns. I hope to calm you a bit.

Costs

Right now, CSN Chicago costs Chicago subscribers around $4.40 a month. ESPN costs between $7.21 and $8.00. There are some other Cubs affiliates that might also pass along costs, while hidden, through your current cable provider as well.

The belief is that the Cubs network should be worth about, if not more, than CSN as the Cubs ratings alone were as much as the other three teams CSN carried (White Sox, Blackhawks, and Bulls). So on a light side we are discussing a $4.40 increase, and since the Cubs will want to place other quality Cubs or other sports content on the channel, let’s just say $5.00 a month.

So that’s the preliminary cost per subscriber, $5. $60 a year to watch Cubs baseball.

Now, there is the suspicion that CSN, and some others, will reduce their monthly fee. Since half of the ratings from CSN are leaving, it is a harder sell for CSN to cable providers and customers to maintain a $4.40 cost. It shouldn’t be a leap to think CSN’s cost will reduce with the absence of Cubs games.

Assuming this, Marquee Sports Network will likely cost around $5 per subscriber, give or take a quarter or so. CSN will likely reduce to around $4.00. This would make the additional monthly charge sit around $4 – $4.50 per user, or $48 to $54 a year to watch Cubs baseball and any additional content they produce.

Politics

There is absolutely no way, possible, that Marquee Sports Network will force any political thought or messaging down your throat. So, rest assured, Len Kasper and Jim Deshaies will not be reading a script.

I am not going to throw politics down anyone’s throat. You are free to side on the right, you are free to side on the left. You are brilliant if you are conservative, you are equally brilliant if you are liberal. However, I can see how someone would be very concerned about sending a $5 donation to Sinclair Broadcast Group, which spends much of their time on the further right of the spectrum, if you are a democrat.

I don’t like supporting causes that I do not like, as such, I can choose what to do with my money when it comes to supporting an organization’s cause or fundraising. The trick here is, the Cubs are a product you want to consume, but a portion of your $5 will absolutely end up in the hands of an organization you may not like.

Here’s the thing, if you have a 401k, mutual fund, or any other sort of fund where there are investments in a multitude of organizations – you absolutely support organization’s that do not share your political beliefs. I am not saying you’re a hypocrite if you are choosing to draw the line in the sand when it comes to Sinclair and the Cubs, I am simply saying it is near impossible for someone to have a clear conscience on where their dollars end up. It ultimately will end up being your choice on where you spend your dollar, but have some relief in knowing a vast majority of your money will go to the Cubs coffers, allowing them to continue to be a first-class baseball organization.

I just won’t buy the channel

That is your right, and no one will tell you how to spend your dollar… well… except cable companies…

Right now, a lot of cable channels have their costs subsidized within the cable package which you already have. So that $115 bucks you send to Comcast or Directv or U-Verse already accommodates for the cost of the many channels you already watch. If you like it or not, you are already sending Sinclair money through the 190+ channels they already operate within the Chicago television market, most of which are subsidized through your regular cable package.

This is how most customers have ESPN already. I mean, look at Xfinity’s (Comcast) TV packages. Each and every single cable package they offer already include ESPN and their $8.00 per subscriber cost. This is a similar view you will have with almost every cable provider there is.

Here are the channels which are operated by Sinclair that you might already be paying for without your knowledge:

Illinois:

• Champaign-Springfield-Decatur:
  • WICD (ABC)
  • WBUI (CW)
  • WICS (ABC)
  • WRSP (Fox)
  • WCCU (Fox)
• Peoria-Bloomington:
  • WHOI (ABC)
• Quincy/Hannibal, Missouri/Keokuk, Iowa:
  • KHQA (ABC/CBS)

This might not be *fair* but this is the cable industry as we know it.

Cutting the cable

It hasn’t been announced, at least not to my knowledge, that the Cubs would add a streaming service under Marquee. Games appear to still be streamed on YouTube, and will be available on MLB At Bat or MLB TV, however these will absolutely still adhere to the broadcast blackout rules set forth by the league.

If there were a streaming service, you would likely have to already have a subscription to the regular channel or would purchase a streaming service that would likely be more than the $5ish it would cost via your regular provider.

In either case, unless you are seeking them out through some social media streaming site, you are paying the Cubs and Sinclair.

I’m tired of them nickeling and diming their diehard fans

There’s no one that could change your mind on this point. You likely watched the Cubs on WGN throughout your life and might be upset at what appears to be a money-grab for something that was once free.

Sure, the Ricketts family will turn a profit on this idea, but let’s not think for a second that that is the only thing this is about.

At the Cubs Convention, Tom Ricketts mentioned how about half of the Cubs ticket revenue goes back to the league. So the Cubs average ticket price is just over $58, and the Cubs have 81 games at beautiful Wrigley Field and averaged 38,793 per game. That would put a total ticket revenue around $182,250,000. If the Cubs do indeed send nearly half of that to the league, as Tom suggests, that’s around $91,000,000 that the Cubs keep. That isn’t enough to pay the Cubs starting rotation.

Point being, with the business of baseball being what it is, creating a station might be the only way the Cubs could ensure that they didn’t fleece their fanbase. Stick with me here…

If an average ticket costs $58, and the Cubs pulled in $182 million, and were only able to retain half of that, they couldn’t even pay their pitchers. The Cubs, without the help of other media opportunities that they and all other teams have, their payroll would have a payroll below the Pittsburgh Pirates and the Miami Marlins. In order for the Cubs to make enough through the gates to pay their existing payroll, the Cubs would need to charge an average of $140 per ticket.

Fans already complain that they can’t bring a family to a ballgame, they’d legitimately need to take out a loan to do it at that price.

All MLB teams, like all businesses, are looking for ways to earn more. All MLB teams are doing naming rights, marketing partnerships, media partnerships, and looking at creating their own regional stations. I mean, the Tampa Bay Rays are doing this, so of course the Cubs will.

Ultimately, I get that fans are frustrated with a lot of this. I understand the political backlash, I understand the feeling of being price-gouged, I understand the idea that the Cubs ownership are losing touch with the fanbase. All I say is, if you’ve ever typed out, said, or wore clothing that said, “In (fill in Joe, Theo, or Tom here) we trust,” I’d say give them the opportunity to prove they failed.