Also would like to add that 34 percent of all Local TV revenue goes to the MLB and then redistributed to the 30 teams equally so I imagine that this number is based off of a formula (Yankees wouldn't choose $90M if this weren't the case).
The good news for the Royals is that the Dodgers, and any other team that signs a monster local TV deal, send 34 percent of that annual revenue to Major League Baseball, according to Uhlich.
MLB then distributes the money evenly among all 30 teams. However, teams are finding a loophole. Money made off a team’s equity stake is not shared.
Chris Bevilacqua, the founder and CEO of Bevilacqua Media Company, explained last year on Forbes’ “SportsMoney” program:
“What you really are seeing is teams that are becoming media companies, they’re taking equity ownership properties,” Bevilacqua said. “So once you get into owning the actual media and having the intellectual property rights, the economics just become greater and greater.”
But there is risk, too. The Dodgers’ deal is expected to call for a network dedicated to the team (a la The Longhorn Network). If advertisers don’t pay as expected, that could cut into a team’s profits.
And there is a chance for viewer backlash. The Dodgers’ deal means another channel for cable companies to pay for, and that cost is passed along to the viewer, whether or not they are fans.
Read more here: http://www.kansascity.com/2013/01/24/4029709/baseball-tv-deals-growing-more.html#storylink=cpy