The broadcast industry was dealt another blow with Friday’s announcement that Warner Brothers Discovery will shutter its four regional sports networks, eliminating its RSN presence entirely within the next few weeks. Teams affected include the Astros, Mariners, Pirates, Rockies, Jazz, Rockets, Trail Blazers, Kraken, Penguins and Golden Knights, with most operating under the AT&T SportsNet brand (WBD owns a 40-percent stake in Root Sports Northwest, with the Mariners responsible for the other 60 percent). Per John Ourand of Sports Business Journal, those 10 teams will have until March 31st to either take back their broadcast rights or have their assets liquidated.
News of AT&T SportsNet’s demise comes on the heels of a similar development unfolding at Maryland-based Sinclair Broadcast Group. Needing to divest assets after being acquired by Disney, Fox sold its remaining RSNs to Sinclair in 2019, later rebranding them as affiliates of Bally Sports. Facing billions in debt, Diamond Sports Group, a subsidiary of Sinclair, missed a $140-million interest payment due earlier this month, thereby entering a 30-day grace period, at which point the company is expected to file Chapter 11.
Addressing Sinclair’s looming bankruptcy, commissioner Rob Manfred said MLB has a contingency plan in place to broadcast games on MLB Network or elsewhere. “In the event that MLB stepped in, what we would do is we would produce the games, we would make use of our asset with the MLB Network to do that, we would go directly to distributors, Comcast, Charter, the big distributors, and make an agreement to have those games distributed on cable networks,” said Manfred in comments to the Associated Press. “We would also be seeking flexibility on the digital side so that, when you look at MLB.TV, you could buy your out-of-market package like you always had but have the option to buy up into in-market games, something the fan has never had before, which I see as a huge improvement for fans.”
Sinclair’s RSN footprint spans 19 media markets with 42 teams in three major sports (NBA, NHL and MLB). The timing couldn’t be worse with MLB in danger of losing more than half its RSN portfolio (the Diamondbacks, Tigers, Marlins, Guardians, Royals, Cardinals, Twins, Reds, Padres, Angels, Braves, Rangers, Rays and Brewers all broadcast games on Bally) ahead of Opening Day. The league’s streaming platform, MLB.tv, would stand to benefit, potentially serving as the impetus for MLB to scrap its restrictive blackout policy—preventing fans from watching games in their home market—once and for all. Of course, the collapse of RSNs could be catastrophic with owners, citing lost television revenue, less inclined to spend money on players, reducing payroll leaguewide while diluting the product for fans. It’s a fascinating subplot that could shape the future of MLB, a league already struggling for relevance in a competitive sports landscape.
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