19 Bally RSN's going bankrupt, 14 MLB teams potentially affected

[caulfield12]

https://www.espn.com/mlb/story/_/id/35668388/rob-manfred-mlb-ready-diamond-sports-group-pay-teams

[caulfield12]

Yay, the rest of the AL Central might be wiped out, lol.

Owning your own networks, priceless.

Brilliant work, Rick Hahn.

 

MLB (14): Arizona Diamondbacks, Atlanta Braves, Cincinnati Reds, Cleveland Guardians, Detroit Tigers, Kansas City Royals, Los Angeles Angels, Miami Marlins, Milwaukee Brewers, Minnesota Twins, St. Louis Cardinals, San Diego Padres, Tampa Bay Rays, Texas Rangers

NBA (16): Atlanta Hawks, Charlotte Hornets, Cleveland Cavaliers, Dallas Mavericks, Detroit Pistons, Indiana Pacers, Los Angeles Clippers, Memphis Grizzlies, Miami Heat, Milwaukee Bucks, Minnesota Timberwolves, New Orleans Pelicans, Oklahoma City Thunder, Orlando Magic, Phoenix Suns, San Antonio Spurs

NHL (12): Anaheim Ducks, Arizona Coyotes, Carolina Hurricanes, Columbus Blue Jackets, Dallas Stars, Detroit Red Wings, Florida Panthers, Los Angeles Kings, Minnesota Wild, Nashville Predators, St. Louis Blues, Tampa Bay Lightning

 

"The annual local broadcast revenue accounts for about 21% of MLBs overall $10.8 billion. An estimated 90% of RSNs revenue comes from the monthly subscriber fees they charge MVPDs and vMVPDs. These carriage fees are among the highest in the cable industry. Because of its high carriage fees, at times, negotiations have reached an impasse, resulting in RSNs being blacked out. Presently, Bally Sports has no carriage deals with DISH, Sling TV and YouTube TV among other distributors."

https://www.forbes.com/sites/bradadgate/2023/02/15/sinclairs-bally-sports-is-on-the-verge-of-bankruptcy-upending-local-sports-revenue-model/?sh=7e23797a25df

 

 

Ready-made quotes from Manfred in light of Bally/Diamond issues...

“I think that the investment that the club has made in talent has allowed them to grow their revenue to the point that they will be a payor under the revenue sharing system this year,” Manfred said about a  mystery team.

“The trick for smaller markets has always been sustainability. He’s made a massive financial commitment, personally, to make this all happen. And the question becomes, how long can you continue to do that? And what happens when you have to go through a rebuild? But they have done a really, really good job of capitalizing on their talent to drive their revenue.”

Edited February 16, 2023 by caulfield12

[caulfield12]

As Manfred explained MLB's backup plan, the league would try to get the games aired on local cable like usual while creating a new option for fans to stream local games, which has long been forbidden under the usual RSN structure:

"We've been really clear that if Diamond doesn't pay, under every single one of the broadcast agreements, that creates a termination right, and our clubs will proceed to terminate those contracts. In the event that MLB stepped in, what we would do is we would produce the games, we would make use of our asset, the MLB Network, to do that. We would go directly to distributors — meaning Comcast, Charter, the big distributors — and make an agreement to have those games distributed on cable networks.

"We would also be seeking flexibility on the digital side, so that when you look at MLB.tv, you'd go in, you can buy your out-of-market package like you've always had, but you would have the option to buy up into in-market games, which I see as a huge improvement for fans.

When asked if he thinks MLB would be able to replace 100 percent of the revenue that teams were due to receive, Manfred responded simply "not in the short term."

.....

Rockies/Astros/Pirates in same dilemma as AT&T Sports Network possibly imploding.

https://sports.yahoo.com/rob-manfred-says-mlb-will-handle-team-broadcasts-if-bally-sports-networks-miss-payments-002531361.html

 

The league has been preparing for DSG’s potential bankruptcy and anticipated Wednesday’s non-payment. If DSG cannot pay the teams it has contracts with, MLB is prepared to take over those TV rights and broadcast the games.

MLB, which has been streaming games since 2002, is confident it can fill the void if DSG can’t honor its contracts.

The Guardians’ contract with Bally Sports runs through 2027. They pay between $47 million and $52 million a year.

Besides the Guardians, DSG holds RSNs with Arizona, Atlanta, Cincinnati, Milwaukee, Kansas City, Detroit, Minnesota, Los Angeles Angels, St. Louis, San Diego, Tampa Bay and Texas. It also has a minority stake with the Cubs’ Marquee Network and Yankees’ Yes Network.

At one time the Guardians owned their own TV rights. Team owner Paul Dolan founded SportsTime Ohio. Dolan sold it to Fox Sports in December 2012 as Fox tried to corner the market on regional sports networks. Fox eventually sold its RSNs to Disney, which sold them to Sinclair for $10 billion in 2019 after it purchased ESPN.

Sinclair’s timing couldn’t have been worse. COVID-19 hit in 2020, causing ballparks and arenas to lock their gates to fans. As the cost of cable subscriptions rose, more and more fans became cord cutters, preferring less expensive alternatives.

https://www.cleveland.com/guardians/2023/02/guardians-tv-season-stays-blurry-as-bally-sports-parent-company-skips-debt-payment.html

Edited February 16, 2023 by caulfield12

[Ducksnort]

Just get rid of the blackout bullshit. 

[southsider2k5]

Which teams are affected, do we know?

[Quin]

25 minutes ago, caulfield12 said:

Yay, the rest of the AL Central might be wiped out, lol.

Owning your own networks, priceless.

Brilliant work, Rick Hahn.

 

MLB (14): Arizona Diamondbacks, Atlanta Braves, Cincinnati Reds, Cleveland Guardians, Detroit Tigers, Kansas City Royals, Los Angeles Angels, Miami Marlins, Milwaukee Brewers, Minnesota Twins, St. Louis Cardinals, San Diego Padres, Tampa Bay Rays, Texas Rangers

NBA (16): Atlanta Hawks, Charlotte Hornets, Cleveland Cavaliers, Dallas Mavericks, Detroit Pistons, Indiana Pacers, Los Angeles Clippers, Memphis Grizzlies, Miami Heat, Milwaukee Bucks, Minnesota Timberwolves, New Orleans Pelicans, Oklahoma City Thunder, Orlando Magic, Phoenix Suns, San Antonio Spurs

NHL (12): Anaheim Ducks, Arizona Coyotes, Carolina Hurricanes, Columbus Blue Jackets, Dallas Stars, Detroit Red Wings, Florida Panthers, Los Angeles Kings, Minnesota Wild, Nashville Predators, St. Louis Blues, Tampa Bay Lightning

 

"The annual local broadcast revenue accounts for about 21% of MLBs overall $10.8 billion. An estimated 90% of RSNs revenue comes from the monthly subscriber fees they charge MVPDs and vMVPDs. These carriage fees are among the highest in the cable industry. Because of its high carriage fees, at times, negotiations have reached an impasse, resulting in RSNs being blacked out. Presently, Bally Sports has no carriage deals with DISH, Sling TV and YouTube TV among other distributors."

https://www.forbes.com/sites/bradadgate/2023/02/15/sinclairs-bally-sports-is-on-the-verge-of-bankruptcy-upending-local-sports-revenue-model/?sh=7e23797a25df

 

 

Ready-made quotes from Manfred in light of Bally/Diamond issues...

“I think that the investment that the club has made in talent has allowed them to grow their revenue to the point that they will be a payor under the revenue sharing system this year,” Manfred said about a  mystery team.

“The trick for smaller markets has always been sustainability. He’s made a massive financial commitment, personally, to make this all happen. And the question becomes, how long can you continue to do that? And what happens when you have to go through a rebuild? But they have done a really, really good job of capitalizing on their talent to drive their revenue.”

As we all know, Rick Hahn negotiates TV contracts.

[caulfield12]

2 minutes ago, southsider2k5 said:

Which teams are affected, do we know?

The whole AL Central. Other than the Sox.  A crucial $47-52 million for the Guardians now at risk.

17 total MLB teams, if you include the three with AT&T Sports Net…including the Astros.

Partial impacts on both MARQUEE and YES due to minority ownership stakes in those networks related to Sinclair Broadcasting financial difficulties to the tune of $8+ billion.

[caulfield12]

2 minutes ago, Quin said:

As we all know, Rick Hahn negotiates TV contracts.

Well, that is his one primary skill, right?

Sarcasm detected.

This is the biggest positive news (bad for baseball, obviously, unless the local blackouts finally disappear) but the only possible way the Sox can actually compete this year.

Cleveland and the Twins will now likely struggle to make midseason moves due to the diminished financial flexibility,, and perhaps to even pay commitments to the likes of Correa/Buxton or Jose Ramirez from the Guardians’ side.

[fathom]

37 minutes ago, southsider2k5 said:

Which teams are affected, do we know?

Like it would have been posted if Padres weren’t included

[Quin]

Just now, fathom said:

Like it would have been posted if Padres weren’t included

Sir, the Royals and Guardians are also there.

[Tnetennba]

The only "DVR-proof" content is live sports, yet Bally's RSNs are going bankrupt?  What are we missing?  

Maybe making local sports as difficult to access via streaming as possible turns people off instead of forcing them to subscribe to antiquated cable systems?  I don't know.  Something doesn't add for me here.

[southsider2k5]

Just now, Tnetennba said:

The only "DVR-proof" content is live sports, yet Bally's RSNs are going bankrupt?  What are we missing?  

Maybe making local sports as difficult to access via streaming as possible turns people off instead of forcing them to subscribe to antiquated cable systems?  I don't know.  Something doesn't add for me here.

The nine figure deals ended up way out-kicking the rate of dollars that could be brought in, especially with the destruction of cable going on in slow motion.

[Tnetennba]

1 hour ago, caulfield12 said:

Yay, the rest of the AL Central might be wiped out, lol.

Owning your own networks, priceless.

Brilliant work, Rick Hahn.

 

Like, I know Hahn is the go to punching bag for a lot of us on this site, but WTF does he have to do with Bally sports going under?

[Tnetennba]

Just now, southsider2k5 said:

The nine figure deals ended up way out-kicking the rate of dollars that could be brought in, especially with the destruction of cable going on in slow motion.

So basically the RSN tv bubble burst?

[southsider2k5]

1 minute ago, Tnetennba said:

So basically the RSN tv bubble burst?

Effectively, yes.

[caulfield12]

9 minutes ago, Tnetennba said:

Like, I know Hahn is the go to punching bag for a lot of us on this site, but WTF does he have to do with Bally sports going under?

Nothing.  
 

See definition of sarcasm/parody…

Edited February 16, 2023 by caulfield12

[Tnetennba]

2 minutes ago, southsider2k5 said:

Effectively, yes.

Makes sense, and honestly isn't all that surprising.

[caulfield12]

1 minute ago, caulfield12 said:

Nothing.  
 

See definition of sarcasm/parody…

But notice the White Sox only negotiated a five year TV deal recently.  JR/Hahn knew this was coming.

[CaliSoxFanViaSWside]

48 minutes ago, caulfield12 said:

Well, that is his one primary skill, right?

Sarcasm detected.

This is the biggest positive news (bad for baseball, obviously, unless the local blackouts finally disappear) but the only possible way the Sox can actually compete this year.

Cleveland and the Twins will now likely struggle to make midseason moves due to the diminished financial flexibility,, and perhaps to even pay commitments to the likes of Correa/Buxton or Jose Ramirez from the Guardians’ side.

Manfred said they knew this was coming. That should mean all the teams involved knew it too. I highly doubt it will affect their payroll commitments. Those are guaranteed contracts. If anyone suffers you can bet it'll be the little guys picking up the tab in one way or another.

We'll have to wait and see who steps into the void this creates. Future big money contracts may be scarcer from the teams this effects.

[JoeC]

30 minutes ago, Tnetennba said:

The only "DVR-proof" content is live sports, yet Bally's RSNs are going bankrupt?  What are we missing?  

Maybe making local sports as difficult to access via streaming as possible turns people off instead of forcing them to subscribe to antiquated cable systems?  I don't know.  Something doesn't add for me here.

For one, there's no way for us to stream Bally Sports. Obviously is probably a drop in the bucket, but it can't help when you effectively limit your product's availability.

[JoeC]

8 minutes ago, CaliSoxFanViaSWside said:

Manfred said they knew this was coming. That should mean all the teams involved knew it too. I highly doubt it will affect their payroll commitments. Those are guaranteed contracts. If anyone suffers you can bet it'll be the little guys picking up the tab in one way or another.

We'll have to wait and see who steps into the void this creates. Future big money contracts may be scarcer from the teams this effects.

Makes me wonder what sort of insurance policies are waiting to be paid out....

[Quin]

26 minutes ago, caulfield12 said:

Nothing.  
 

See definition of sarcasm/parody…

 

Usually, those are somewhat funny / make a modicum of sense.

[Tnetennba]

1 hour ago, caulfield12 said:

Nothing.  
 

See definition of sarcasm/parody…

First give us a discourse on how to interpret your rambling nonsensical posts.  I know what parody, sarcasm, and satire all are.  But do you know how to make a concise coherent point?

[Tnetennba]

1 hour ago, JoeC said:

For one, there's no way for us to stream Bally Sports. Obviously is probably a drop in the bucket, but it can't help when you effectively limit your product's availability.

Zero streaming options for your RSN in the year 2023?  And I thought requiring a cable subscription to stream was asinine.

[EloyJenkins]

The trade deadline this year is going to be INSANE. The Reynolds of the worlds (stars with escalating arbitration values or near FA times) will be given away if these teams lose this revenue. Smart GMs with some savvy are salivating.