TV Economics of Baseball: Bubble of Money Will Drive Up Salaries And Burst

Touched on the TV Model changing…worth a read, given the recent FA spending noted at MLBTradeRumors.com and others.

Deepcenterfield MLB

Your Dollars At Work To Fuel A Bubble

Unless you have been in a coma since 2008, you have heard that the U.S. Fed has employed quantitative easing (QE) to increase liquidity for their BFFs: the U.S. Banks. From investopedia:

A government monetary policy occasionally used to increase the money supply by buying government securities or other securities from the market. Quantitative easing increases the money supply by flooding financial institutions with capital, in an effort to promote increased lending and liquidity.

Onto the MLB. The TV powers that be, have employed a similar type of quantitative easing, providing a huge liquidity bump for the 30 MLB teams bottom lines. (For the actual watching of Fox, TBS, or ESPN a fan can just watch with sound on mute while listening to someone more tolerable.)

The megadeals: ESPN will increase their contribution from $306 million to $700 million per…

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