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

[Spydey629]

It is ironic isn't it. In this case it might be better to be with a RSN that is going full belly up vs one that is restructuring.

Not what I was going for, but I hear ya. I meant more that the cable outlet that charges a customer out the ying-yang for its service wants to lower its own cost-for-service...

 

[Kirk Van Houten]

 

[rsteen]

Somewhat surprised it's the MLB who agreed to this first given they seemed the most eager to claw back the rights to make their own DTC solution.
I assume this means the NHL will be also trying to agree something similar with their rights.

 

[LadyStanley]

The only sport in the Big Four you can watch without a live TV package is the NFL. The bulk of MLB, NBA, and NHL games are on cable. And the only sport made for cord cutters if MLS, IF you have AppleTV.

Not exactly. OTA channels may not be available to cord cutters if the signal does not reach them well (raises hand). You have to get live TV streaming package with local channels or cable/satellite to watch then. And Thursday games are only streaming.

The NFL package/app is for out of market teams and can only be viewed on phone (or maybe tablet) for live games. (Or you can watch replays.)

 

[mouser]

Somewhat surprised it's the MLB who agreed to this first given they seemed the most eager to claw back the rights to make their own DTC solution.
I assume this means the NHL will be also trying to agree something similar with their rights.

I don’t believe MLB has agreed to this. Appears to be a bankruptcy court related offer from Diamond Sports which MLB hasn’t responded to yet.

MLB has been adamant against giving Diamond streaming rights.

 

[rsteen]

I don’t believe MLB has agreed to this. Appears to be a bankruptcy court related offer from Diamond Sports which MLB hasn’t responded to yet.

MLB has been adamant against giving Diamond streaming rights.

Oh, that makes more sense, thanks.

 

[MMC]

 

[Marc the Habs Fan]

What do we make of this one?

There's no other big 4 team in San Diego and that network was basically created to broadcast Padres games. Is this going to be an isolated case? I believe every other Bally Sports station covers multiple teams in the big 4.

 

[KevFu]

What do we make of this one?

There's no other big 4 team in San Diego and that network was basically created to broadcast Padres games. Is this going to be an isolated case? I believe every other Bally Sports station covers multiple teams in the big 4.

The big takeaway is that how this goes will determine the future of sports broadcasting...


MLB, sources said, will provide Padres games through its MLB.TV app for free through Sunday. After that, in-market fans can continue to stream games for $19.99 a month or $74.99 for the rest of the regular season (postseason games air on national platforms). Through this process, Padres games will no longer be subject to blackouts. Local fans can also watch Padres games through a variety of cable providers -- AT&T U-Verse, DirecTV, Charter, Cox and Spectrum among them -- on a different channel. fuboTV will also continue to air Padres games through its platform.

In-game, on-air broadcasters -- typically play-by-play announcer Don Orsillo, analyst Mark Grant and on-field reporter Bob Scanlan -- are employed by the Padres and won't be affected, sources with knowledge of the situation said. Camera operators, producers and other behind-the-scenes employees are typically outsourced on a freelance basis, a model that MLB will follow.

 

[MMC]

 

[mouser]

What do we make of this one?

There's no other big 4 team in San Diego and that network was basically created to broadcast Padres games. Is this going to be an isolated case? I believe every other Bally Sports station covers multiple teams in the big 4.

From what I'm reading, Diamond is delinquent on payments, and has asked the bankruptcy judge to essentially reduce fees Diamond's contracted fees for the MLB Cincinnati, Texas, Arizona and Cleveland team deals.

Ruling from the judge expected this week. If that goes badly for Diamond we could see a lot more fireworks shortly.

 

[mouser]

Good article on the Padres contract:

"Diamond made an 11th-hour payment on its 20-year, $1.2 billion contract with the Padres — roughly $60 million a year through 2032 — on the eve of opening day, although that deal had been highlighted as one that was especially troublesome for the company amid the cord-cutting era.

The New York Post reported in March that the Padres’ deal was costing Diamond $20 million a year."

Bally Sports San Diego out as Padres broadcast partner; team, MLB will stream and broadcast games, lift local blackouts

Tuesday marked Bally Sports San Diego’s last Padres broadcast.Parent company Diamond Sports missed last week’s payment and let the grace period expire, triggering the return of broadcas…

www.sandiegouniontribune.com

 

[Marc the Habs Fan]

Interesting - would the NHL do the same? How would this affect HRR?

 

[Vamos Rafa]

So what made Bally Sports fail? What’s keeping NBC regional sports networks alive in this cord-cutting era?

 

[jkrdevil]

So what made Bally Sports fail? What’s keeping NBC regional sports networks alive in this cord-cutting era?

Debt. They bought the Fox Sports regionals at an inflated value at the peak of cable which piled on an additional debt load that they couldn’t service.

The other regionals don’t have that debt load and thus are less effected by the drop in subscribers due to cord cutting (and customers moving to services without the regionals).

 

[AtlantaWhaler]

Are any of the other teams expected to go that same direction?

 

[Kirk Van Houten]

Found this intresting and I forgot about it but MLB was close to win the rights of the RSNs back in the day.

 

[sh724]

Debt. They bought the Fox Sports regionals at an inflated value at the peak of cable which piled on an additional debt load that they couldn’t service.

The other regionals don’t have that debt load and thus are less effected by the drop in subscribers due to cord cutting (and customers moving to services without the regionals).

Its not just debt, they have paid out massive amounts in distributions and have authorized significantly more to be paid.

 

[MMC]

 

[MMC]

 

[mouser]

Not surprised in the least.

As I’ve said earlier, bankruptcy courts can void contracts, but it’s rare the judge forces a change in a contract‘s financial terms.

 

[AtlantaWhaler]

Saw an article this morning that the Braves will remain on Bally's for now.

 

[Llama19]

Diamond Sports must pay full value of contracts to Diamondbacks, Guardians, Twins, Rangers

To quote:

"A federal bankruptcy judge has ordered Diamond Sports to pay the full value of its media contracts to the Arizona Diamondbacks, Cleveland Guardians, Minnesota Twins and Texas Rangers.

Judge Christopher Lopez made the ruling on Thursday in Houston. Diamond Sports, which owns 19 networks under the Bally Sports banner, has been in Chapter 11 bankruptcy proceedings in the Southern District of Texas since it filed in March. Diamond said in a financial filing last fall it had debt of $8.67 billion."

Source: www.azcentral.com/story/sports/mlb/diamondbacks/2023/06/02/diamond-sports-must-pay-full-value-of-contracts-to-mlb-teams/70281198007/

 

[KevFu]

What’s keeping NBC regional sports networks alive in this cord-cutting era?

A. Most the NBC networks are co-owned with the franchises to some degree, which reduces the rights fees the network pays to the teams A LOT (because the team owner takes profits from the network instead to work around MLB/NBA revenue sharing rules)

B. The NBC networks are in MASSIVE markets compared to Bally's:
- Bay Area/California are in the northern half of the state and parts of Oregon and Nevada. It's like 20 million people
- Boston covers almost all of New England, which is like 14 million people.
- Chicago
- Philly
- Washington (Whole DMV).

 

[oknazevad]

A. Most the NBC networks are co-owned with the franchises to some degree, which reduces the rights fees the network pays to the teams A LOT (because the team owner takes profits from the network instead to work around MLB/NBA revenue sharing rules)

B. The NBC networks are in MASSIVE markets compared to Bally's:
- Bay Area/California are in the northern half of the state and parts of Oregon and Nevada. It's like 20 million people
- Boston covers almost all of New England, which is like 14 million people.
- Chicago
- Philly
- Washington (Whole DMV).

Should also note that NBCU doesn't have any actual stake in NBCSN Washington anymore, having sold their stake to Caps/Wizards/Mystics/Go-Go/Capital One Arena owner Monument Sports. They're still using the NBC branding under temporary license.