Daniel Shirey
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gettyimages.comMLB's Media Overhaul
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According to reports from ESPN, Major League Baseball commissioner Rob Manfred is focusing on a long-term media rights plan for all 30 teams, aiming to nationalize broadcast rights by 2028 to maximize revenue and eliminate local blackouts.
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Impact of Diamond's Bankruptcy
Diamond Sports Group's bankruptcy has significantly reshaped the landscape of regional sports broadcasting, particularly for Major League Baseball teams. The company, which operated Bally Sports channels, announced it would stop broadcasting games for 11 of the 12 MLB teams it currently televises in 2025
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. This decision has created uncertainty for affected teams, who must now either renegotiate with Diamond or find new broadcast partners.
The bankruptcy's impact extends beyond MLB. Diamond's portfolio has shrunk from 19 regional sports networks to 16, and its deals with professional teams have decreased from 42 to 27 across MLB, NBA, and NHL2
. This restructuring has led to reduced rights fees for teams, with Diamond's projections showing payments to sports teams declining from $1.5 billion in 2024 to $953 million in 20253
. The situation has accelerated MLB's plans to nationalize local media rights, potentially leading to a new era of sports broadcasting where streaming services like Amazon, Apple, and YouTube could play larger roles in local game distribution4
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.5 sources
Future of Regional Sports Networks
The traditional Regional Sports Network (RSN) model is facing significant challenges due to cord-cutting and changing viewer habits, prompting MLB to explore new broadcasting strategies. As RSNs struggle financially, MLB is considering a shift towards a more centralized, national streaming model
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. This potential overhaul could involve creating national packages intended for streaming distribution, with plans to announce new arrangements by 2028 when many current TV rights contracts expire2
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Key developments in this transition include:
- MLB taking over local rights for some teams, like the Arizona Diamondbacks and San Diego Padres1
- Discussions about a national broadcast package potentially including half the league's teams1
- Exploration of partnerships with major streaming companies to build products for a broader audience1
- Efforts to address longstanding blackout issues and increase the sport's national reach3
- Consideration of bundling streaming app subscriptions with other fan experiences to create comprehensive VIP team service offerings4
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. However, the transition faces challenges, including negotiations with the players' union and convincing large-market teams to relinquish control of their profitable local media rights5
.5 sources
Challenges in Nationalizing Rights
MLB's plan to nationalize media rights faces significant challenges, particularly from large-market teams. Franchises like the New York Yankees, Los Angeles Dodgers, and Boston Red Sox, which earn substantial revenue from their current local rights deals, have little incentive to join a centralized system
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. The disparity in valuations between large and small market teams' local rights complicates the creation of a revenue-sharing agreement that satisfies all parties1
. Additionally, MLB must navigate existing contracts, including ESPN's opt-out clause after the upcoming season, and negotiate a new collective bargaining agreement following 2026, which will have major implications for revenue sharing in the league1
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- The league needs to convince approximately two-thirds of teams to adopt the nationalized strategy by 20281.
- Manfred acknowledges the need to demonstrate to clubs that joining the centralized system is in their economic interest2.
- The transition may lead to a temporary widening of revenue gaps between big-market clubs and those affected by the Diamond Sports Group bankruptcy3.
3 sources
Related
What are the main obstacles in achieving national control of media rights
How might nationalizing media rights affect fan engagement
What are the potential financial implications for smaller market teams
How could this change impact the relationship between MLB and regional sports networks
What strategies are being considered to address labor concerns
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