Unraveling MLB's Media Rights Maze with Expert Insights
Baseball's Media Landscape Shifts
The recent conclusion of Diamond Sports Group's bankruptcy has brought a sense of relief to Major League Baseball commissioner Rob Manfred. As he stated during the owners meetings, the league managed to maximize economics for the clubs without losing a single game. This short-term certainty sets the stage for the long-term media rights plan.
A bankruptcy judge's approval last Thursday marked a significant milestone. Diamond, the country's largest regional sports network operator, emerged from bankruptcy 20 months after filing for Chapter 11. This sets the stage for potential changes in how MLB teams' media rights are handled.
Teams and Contracts in Focus
Diamond's reorganization plan affects six MLB teams that negotiated new deals - the Atlanta Braves, Detroit Tigers, Los Angeles Angels, Miami Marlins, St. Louis Cardinals, and Tampa Bay Rays. Their contracts expire by 2028, coinciding with MLB's major national deals ending. This presents an opportunity for MLB to negotiate broadcast rights for roughly half its teams.
The league's ultimate goal is to hold linear and digital rights for all 30 clubs, maximizing revenue and eliminating local blackouts. However, convincing stable regional sports network-owning clubs to relinquish control is a challenge. Teams like the Boston Red Sox, Los Angeles Dodgers, and New York Yankees hold significant sway.
Broadcast Rights and Team Dynamics
In 2025, MLB will broadcast games for several teams, including the Arizona Diamondbacks, Cincinnati Reds, Cleveland Guardians, Colorado Rockies, Milwaukee Brewers, Minnesota Twins, and San Diego Padres. The Texas Rangers and Kansas City Royals are still undecided. The addition of Diamond's teams could ensure a national umbrella with at least 14 to 16 teams.
The biggest question surrounds the big-market teams. Yankees owner Hal Steinbrenner, who owns 25% of the YES Network, said discussions haven't begun. The Mets, on the other hand, don't own a portion of SNY. Packaging teams together requires approval from the players' union due to revenue sharing changes.
Manfred emphasized that while there are mechanics and existing agreements to work through, the potential for increased revenue over the long haul is a compelling factor. "If you're making a change that you believe is going to substantially increase your revenue, it gives you that great thing that helps you solve a lot of problems. It's called money," he said.