Annual Professional Baseball Broadcasting Rights Fee

Annual Professional Baseball Broadcasting Rights Fee of 99 Billion Won… A Great Help to the Club

As the annual professional baseball broadcasting rights fee,

which includes TV and wired/wireless, reached 99 billion won,

the livelihoods of the 10 teams were also relieved.

The KBO Secretariat extended the TV broadcasting rights contract

with the three terrestrial broadcasters for three years for an annual average of 54 billion won, the same as the existing contract.

In addition, it signed an exclusive contract for wired and wireless broadcasting with CJ ENM,

which owns video streaming (OTT) service company Tving,

and agreed to receive an average of 45 billion won per year for three years.

The KBO Secretariat distributes the 99 billion won in annual broadcasting rights fees received from media companies equally to the 10 teams over 3 to 4 times. 온라인카지노

Wired and wireless broadcasting rights fees more than doubled from the previous annual average of 22 billion won,

and the annual broadcasting rights income received by each club increased by 2.3 billion won (30%) from 7.6 billion won to 9.9 billion won as of last year.

This is just 100 million won less than 10 billion won.

The 10 professional clubs appear to be pleased with the increase in broadcasting rights fees.

Representatives of each club, who were dissatisfied with the integrated marketing led by the KBO Secretariat and the establishment of KBO.com,

reportedly praised the KBO Secretariat for successfully completing negotiations on broadcasting rights.

This is because the amount of support that must be requested from the parent company has decreased accordingly.

An official from one club also said, “Considering that the cost of spring training held overseas every year is about 1 billion won,

the 2.3 billion won income from the increase in broadcasting rights is the amount that can be used to go to overseas training two more times.”

“There is now room to actively pursue other businesses, such as marketing,” he said.

Each club’s annual broadcasting rights income of 9.9 billion won accounts for a significant portion of the team’s operating expenses.

On the 5th, we looked at the team operating expenses (activity expenses) in each club’s 2022 audit report published in March of last year through the Financial Supervisory Service’s electronic disclosure system, and found that the seven clubs that recorded related items spent between 26.2 billion won and 59.6 billion won.

It is difficult to make simple comparisons as each club has different financial statement forms and cost calculation methods,

but it can be estimated that an average of approximately 36.6 billion won is spent on annual team operating expenses.

Broadcasting rights income accounts for 27% of the cost.

Clubs that use less operating expenses are more dependent on income from broadcasting rights.

The 2023 audit reports for the 10 clubs are scheduled to be published within this month.

As wired and wireless broadcasting rights fees rose significantly,

the era of free viewing came to an end and the era of paid viewing began.

Now, the responsibility to prove that professional baseball is content worth paying to watch lies with the 10 professional baseball teams and players.