Collapse of Regional Sports Networks (Diamond Sports Group files bankruptcy, Warner-Discovery looking to leave business, Xfinity drops Bally)

[CHRDANHUTCH]

When the Rangers and Knicks stopped using WOR as an overflow channel following the 88-89 season, they had MSG2. Where I was (Nassau County) MSG 2 was not a full-time channel. MSG 2 would get shown on The Family Channel for pre-game through Post-game and then revert back to The Family Channel. Sportschannel did the same as they carried Mets, Yankees, Devils, Islanders, and Nets. If they were carrying more than 1 at the same time, one would be on Sportschannel Plus, which I believe would take over The Weather Channel. This was in the days of the cable box with the buttons. 3 rows of 13 channels, so simply adding a channel wasn't possible.

YUP, same before the advent of NESN + as a separate stand alone channel.... they'd use the Community channel aka Great Falls TV....

 

[KevFu]

Their business model and TV packages in general were always a ripoff. Basically subsidizing crap you didn't watch. Better to pay a type of fee for what you actually want. In the past, I've bought sports packages where I just don't have the time to watch the games. Its not worth it. Everything benefits networks, teams, players and the fan was screwed.

The cable business model was the all cable subscribers are paying for every channel, whether they watch it or not.

The streaming revolution has taken the revenues from people who didn't watch off the board for the sports teams. And that's why the teams are gonna lose a lot of revenue. That slice of the pie is just gone.

This is something I was thinking about. For argument's sake, whatever happens with this situation happens. Then, other RSN's slowly start bowing out as contracts expire. Can the OTA's, as you said the non-majors, pay enough for local rights to make the teams/league happy, well at least somewhat happy? As a kid in the 80s, I remember half of the Mets games being on Sportschannel and hald on WOR-9. Yankees were split between Sportschannel and WPIX-11. Rangers and Knicks had WOR-9 as an overflow channel until 1989 when both played at the same time.

I think lots of people are confusing the distribution of TV as a "Channel" vs a "Program." The leagues can sell the games they produce as syndicated content. So the local team could be on different channels in different markets. This was done by college sports a lot in the 1980s/1990s.

You could see afternoon weekend games being bought by ABC/CBS/NBC/FOX, but you won't see the broadcast networks just being the home of 70 NHL/NBA or 150 MLB games because the affiliates are only allowed to preempt network programming a handful of times a year.

The most likely situation would probably be selling games to local Ion stations. Ion, being OTA, is available in more homes and gets higher ratings than cable networks like TNT, TBS, USA, etc. As cord-cutter numbers grow, Ion has really grown, too. Because it's free to cord cutters.

Their owner (Scripps) is looking to elevate the networks and actually has talked with the Pac-12.

Ion and the leagues talking could be a win-win.

Well, there's always expansion for owners to off-set the loss of revenue!

I want the record to reflect that I said this BEFORE seeing the Bucci tweet.

 

[varsaku]

The cable business model was the all cable subscribers are paying for every channel, whether they watch it or not.

The streaming revolution has taken the revenues from people who didn't watch off the board for the sports teams. And that's why the teams are gonna lose a lot of revenue. That slice of the pie is just gone.





I think lots of people are confusing the distribution of TV as a "Channel" vs a "Program." The leagues can sell the games they produce as syndicated content. So the local team could be on different channels in different markets. This was done by college sports a lot in the 1980s/1990s.

You could see afternoon weekend games being bought by ABC/CBS/NBC/FOX, but you won't see the broadcast networks just being the home of 70 NHL/NBA or 150 MLB games because the affiliates are only allowed to preempt network programming a handful of times a year.

The most likely situation would probably be selling games to local Ion stations. Ion, being OTA, is available in more homes and gets higher ratings than cable networks like TNT, TBS, USA, etc. As cord-cutter numbers grow, Ion has really grown, too. Because it's free to cord cutters.

Their owner (Scripps) is looking to elevate the networks and actually has talked with the Pac-12.

Ion and the leagues talking could be a win-win.



I want the record to reflect that I said this BEFORE seeing the Bucci tweet.

Wouldn't the revenue fall be harder with the rumored expansion. There would be more mouths to feed with a probably smaller TV contract or at best flat deal. This seems like a short sighted move to expand now.

 

[rsteen]

Expansion helps the owners because the expansion fees aren't HRR. A new franchise won't help the cap unless it makes above-average revenue in the first year.

Is there anything from the Vegas expansion about how it affected the cap or the cap calculations? Seattle was during the flat cap so it was already decoupled from current HRR.

 

[patnyrnyg]

The cable business model was the all cable subscribers are paying for every channel, whether they watch it or not.

The streaming revolution has taken the revenues from people who didn't watch off the board for the sports teams. And that's why the teams are gonna lose a lot of revenue. That slice of the pie is just gone.





I think lots of people are confusing the distribution of TV as a "Channel" vs a "Program." The leagues can sell the games they produce as syndicated content. So the local team could be on different channels in different markets. This was done by college sports a lot in the 1980s/1990s.

You could see afternoon weekend games being bought by ABC/CBS/NBC/FOX, but you won't see the broadcast networks just being the home of 70 NHL/NBA or 150 MLB games because the affiliates are only allowed to preempt network programming a handful of times a year.

The most likely situation would probably be selling games to local Ion stations. Ion, being OTA, is available in more homes and gets higher ratings than cable networks like TNT, TBS, USA, etc. As cord-cutter numbers grow, Ion has really grown, too. Because it's free to cord cutters.

Their owner (Scripps) is looking to elevate the networks and actually has talked with the Pac-12.

Ion and the leagues talking could be a win-win.



I want the record to reflect that I said this BEFORE seeing the Bucci tweet.

What are "Ion stations"? I have an antenna along with cable. On the antenna, I get channels like 11-2 (Antenna TV) and 5-2, 5-3. Are these Ion stations?

 

[Llama19]

What are "Ion stations"? I have an antenna along with cable. On the antenna, I get channels like 11-2 (Antenna TV) and 5-2, 5-3. Are these Ion stations?

Ion Media/television are over-the-air channels...are local to each market...

However...it was acquired by the E. W. Scripps Company and merged with its Katz Broadcasting subsidiary...

Here is the Wiki link to list of local stations for various markets:
en.wikipedia.org/wiki/List_of_stations_owned_and_operated_by_Ion_Media

 

[KevFu]

For the most part, Ion just runs syndicated shows they buy from studios.

They're actually the ideal TV partner for MLB, NHL, NBA to sell games the leagues produces because they have an affiliate covering EVERY ONE of the 23 cities with a team on Ballys in NHL, NBA, MLB.

They don't quite have the affiliate coverage everywhere (Remember, local rights cover every square inch of the continental US... But because they are OTA, there's no carriage disputes, so they're probably on more TVs than Ballys period.

 

[mouser]

 

[jkrdevil]

Per Sports Business Journal, sounds like every team that Ballys/Diamond Sports owns the rights too are being paid except for the Arizona Diamondbacks

Sports Media: What to expect with Diamond Sports bankruptcy

Diamond Sports Group is expected to file for bankruptcy protection by Friday, March 17, which affects its 19 regional sports networks. Most observers expect the filing to happen as soon as March 16.

www.sportsbusinessjournal.com

And there was this tidbit:

7. What about the NBA and NHL? Are their teams at risk?
NBA executives have been working with Diamond to figure out a plan to move forward. The NBA wants to make sure that its teams continue to receive their local rights fees payments for, at least, the next two years when the league goes to market with its national rights. It’s in the NBA’s best financial interest to try to keep Diamond afloat until that time. The NHL also is working with Diamond to reach a solution. At the end of 2021, the NHL was the first league to cut a digital rights deal with Diamond, and sources say the league is looking to accommodate the company. Of all the leagues, the NHL is, perhaps, in the best position in the unlikely event that Diamond fails to carry its games. The NHL already has a deal that allows ESPN to carry the league’s out-of-market games on ESPN+. The league could fashion a deal that would give ESPN the in-market rights, too.

 

[mouser]

 

[mouser]

Article notes three other MLB teams that could be at risk including Padres with a $60m/year deal.

3. Are other teams in peril?
So far, Diamond has paid all of its rights fees on time, except for the Diamondbacks. Multiple sources point to three other MLB clubs that have rights deals that are considered extremely favorable to the teams and could face the same situation as the Diamondbacks. One is the San Diego Padres, which has a deal with Bally Sports San Diego that pays the team an average of $60 million annually through 2032. The Cleveland Guardians and Cincinnati Reds, which have rights deals with Bally Sports Ohio, also have deals that greatly favor the teams, sources said. Sports Business Journal has not been able to determine the value of those two deals.

 

[Major4Boarding]

#7 somewhat answers our question in the other thread

7. What about the NBA and NHL? Are their teams at risk?
NBA executives have been working with Diamond to figure out a plan to move forward. The NBA wants to make sure that its teams continue to receive their local rights fees payments for, at least, the next two years when the league goes to market with its national rights. It’s in the NBA’s best financial interest to try to keep Diamond afloat until that time. The NHL also is working with Diamond to reach a solution. At the end of 2021, the NHL was the first league to cut a digital rights deal with Diamond, and sources say the league is looking to accommodate the company. Of all the leagues, the NHL is, perhaps, in the best position in the unlikely event that Diamond fails to carry its games. The NHL already has a deal that allows ESPN to carry the league’s out-of-market games on ESPN+. The league could fashion a deal that would give ESPN the in-market rights, too.

 

[mouser]

Diamond Sports expected to file bankruptcy this week.

 

[Spydey629]

Diamond Sports expected to file bankruptcy this week.

But still no word on what is happening with the AT&T Sportsnet (Warner/Discovery) markets. March 30th is going to be here quickly...

 

[patnyrnyg]

Saw an article over the weekend and can't find it now, so not sure if it was an old article or new. MLB saying they will stream the games for impacted teams for free in-market. Not finalized on how yet, my guess would be through the MLB app with the blackouts removed. Secondly, they would use the regular broadcasters of the games.

 

[varsaku]

Saw an article over the weekend and can't find it now, so not sure if it was an old article or new. MLB saying they will stream the games for impacted teams for free in-market. Not finalized on how yet, my guess would be through the MLB app with the blackouts removed. Secondly, they would use the regular broadcasters of the games.

That would be a lot of lost revenue if that is the case. What happens in MLB if the team doesn't have a local broadcaster for a long period of time? Are there any revenue sharing from local broadcasting revenue in MLB to keep teams afloat?

 

[patnyrnyg]

That would be a lot of lost revenue if that is the case. What happens in MLB if the team doesn't have a local broadcaster for a long period of time? Are there any revenue sharing from local broadcasting revenue in MLB to keep teams afloat?

Short-term lost revenue, but the long-term impact will be MUCH worse if the games are not shown at all.

 

[IU Hawks fan]

That would be a lot of lost revenue if that is the case. What happens in MLB if the team doesn't have a local broadcaster for a long period of time? Are there any revenue sharing from local broadcasting revenue in MLB to keep teams afloat?

48% of all local revenue is shared.

 

[Crede777]

Bally is looking to cut its four costliest MLB contracts.

Bally Sports is then expected to use the bankruptcy proceedings to reject the contracts of four teams, including the Cleveland Guardians, Cincinnati Reds, Arizona Diamondbacks and the San Diego Padres, the reports say.


These teams cost Bally Sports millions more than they were making in cable subscriptions and ad revenue.

This again worries me about how Bally may approach deals with less lucrative NHL markets.

Reports: Bally Sports expected to lose rights to Guardians, other MLB teams

Major League Baseball is preparing to take over the broadcasts of several teams’ games, including the Cleveland Guardians, as their regional sports network heads toward bankruptcy, according …

fox8.com

 

[patnyrnyg]

Bally is looking to cut its four costliest MLB contracts.

This again worries me about how Bally may approach deals with less lucrative NHL markets.

Reports: Bally Sports expected to lose rights to Guardians, other MLB teams

Major League Baseball is preparing to take over the broadcasts of several teams’ games, including the Cleveland Guardians, as their regional sports network heads toward bankruptcy, according …

fox8.com

that's the article, but not that website, so probably the NYPost original.

 

[MMC]

 

[Taro Tsujimoto]

 

[mouser]

Some additional details from Ourand

 

[MMC]

 

[GKJ]

Guess it's about to get serious