MLB broadcasting rights, explained: What Bally Sports parent company bankruptcy could mean for fans in 2023
In early 2023, MLB tries to address two of its most confusing — and most hated — debacles: broadcast rights and power outages.
The vast majority of MLB games are televised over a regional sports network — or RSN. This means that broadcasting rights are handled locally, unlike, for example, the NFL, which has broadcasting rights with five companies (Fox, CBS, NBC, ESPN/ABC, Amazon Prime).
The result for baseball is that teams have to work with local networks to show games. Some major-market teams — notably the Yankees, Cubs, Mets, and Red Sox — have their own broadcast network. Others work with regional outlets.
The most common broadcast partner is Bally Sports, previously under the Fox Sports umbrella and now owned by Diamond Sports Group, a subsidiary of TV giant Sinclair. Fourteen MLB teams broadcast with Bally Sports.
Diamond Sports Group announced on Feb. 15 that it was skipping its $140 million payout, which could mean impending bankruptcy. That could open the door for MLB to take over streaming rights.
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The Sporting News breaks down what you need to know about the MLB local television situation and how Diamond Sports Group’s troubles could impact how fans watch games in 2023:
What is Diamond Sports Group?
Owned by Sinclair, Diamond Sports Group is the operating arm of the regional Bally Sports Networks which hold the broadcasting rights to 14 teams – by far the largest holding company under one roof. The second highest number is four each for NBC Sports and AT&T.
The teams currently broadcasting under the Bally banner are:
- Arizona Diamondbacks
- Atlanta Braves
- Cincinnati Red
- Cleveland Guardian
- Detroit Tigers
- Kansas City Royals
- Angels from Los Angeles
- Miami Marlin
- Milwaukee Brewers
- Minnesota twins
- St. Louis Cardinals
- San Diego Padres
- Tampa Bay Rays
- Texas Rangers
Diamond Sports Group failed to pay a $140 million interest payment on Wednesday, meaning it is now in a 30-day grace period. Should DSG fail to pay after that period, it would file for Chapter 11 bankruptcy. In addition, teams can sell the broadcast rights if DSG does not pay.
Diamond Sports Group was bought by Sinclair after Disney was forced to sell it due to antitrust concerns following its acquisition of Fox.
In its Wednesday statement, DSG wrote that it “intends to use the 30-day grace period to continue its ongoing discussions with creditors and other key stakeholders on possible strategic alternatives and deleveraging transactions to best position Diamond Sports Group for the future.” , according to ESPN .
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What does Diamond Sports Group’s failed payment mean for MLB?
Due to DSG’s financial woes, MLB could acquire broadcast rights in the short term, but this would be unlikely to be permanent.
“In the event that MLB intervened, we would produce the games,” commissioner Rob Manfred told reporters, per ESPN. “We would use our capital, the MLB network, to do this. We would go straight to the distributors — that is, Comcast, Charter, the big distributors — and make an agreement to distribute those games over cable networks. My expectation is that as part of the negotiations there would be a price negotiation. And that probably leads back to what the economics would be, but we would look for flexibility on the digital side as well.