Exactly. By way of example, the Texas Rangers recently signed a 20-year, $1.6b deal with Fox Sports Southwest[1]. That renewal happened four years prior to th

Exactly. By way of example, the Texas Rangers recently signed a 20-year, $1.6b deal with Fox Sports Southwest[1]. That renewal happened four years prior to the expiration of the current contract. Why? To keep Comcast--who is trying to make a run for the Astros' TV rights--or Mark Cuban's HDNet from taking over. Fox Sports can afford the huge payment because it collects money from cable MSOs, satellite providers, and telcos (FiOS and U-Verse both carry FSSW) in addition to advertising rates. Over-the-air broadcasts are funded solely by ad rates unless the station has negotiated a retransmission agreement that pays, which most have, but at a lower rate than "cable-only" channels. 1 - http://www.chron.com/disp/story.mpl/sports/bb/7220803.html http://www.chron.com/disp/story.mpl/sports/bb/7220803.html