Collapse of Regional Sports Networks (Diamond Sports Group files bankruptcy, Warner-Discovery looking to leave business, Xfinity drops Bally)
- Thread starter Headshot77
- Start date
Right now Ballys/Diamond Sports. They have an agreement with the NHL for the digital in-market rights (same with the NBA) and it seems like they are committed to paying the rights fees to the teams where they have the digital rights. Currently the dispute is with the MLB teams that aren’t selling them those rights.
Now who knows what losing a whole bunch of MLB rights could do to the whole deal.
KevFu
Registered User
It would make it easier for them to pay the NHL/NBA teams, because they'd have lesser debt and obligations. They'd lose some revenue from less viewers overall watching their networks, but chances are they'd come out with better looking books.
The real thing to watch for ISN'T who gets their rights fees from the RSNs and who doesn't. Because that's just the short term ending of an OLD MODEL who's days are coming to a close.
The thing to watch for is the FUTURE MODEL. Because the NHL, NBA and MLB are going to have a problem with "What future model makes the most revenue from media rights without losing fans?" The sales for the Padres in-market streaming package, and any disclosure of what Cox, DirecTV and the other cable companies paid directly to MLB for the league-produced Padres games will be quite telling.
LadyStanley
Registered User
LA Kings do not have a TV rights partner for next season and as a result, Alex Faust will not return as TV voice:
rsteen
Registered User
- Oct 1, 2022
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So he's employed by the Kings, not the network, but they're letting him go because their contract with Bally has ended? How does that make sense? They'll be on TV somewhere and they'll need someone to do PBP.
Reading the thread, it looks like they are doing a three-man simulcast.
I’m sure Faust will keep doing CFB for Fox and some late games for TNT, but for now, it looks like he is without a full -time team.
Lt Dan
F*** your ice cream!
They expect revenues will be down substantially and they are working with who(m) they have under contract.
This is a win for Kings fans. Nickson is much better than Faust
Too bad the Kings have let Alex Faust go as he is a really good broadcaster
Kirk Van Houten
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- May 7, 2019
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Chileiceman
Registered User
Jazz and VGK were on the same RSN (Root Sports Rocky Mountain), which I'm guessing is going bye bye. Colorado Rockies are there too, I wonder what will happen to them.
Kirk Van Houten
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- May 7, 2019
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For the MLB teams I think is more straight foward since we saw it with the Padres already. The MLB will take care of those broadcasts now for next year who knows.
Djp
Registered User
MLB has special rules that other leagues don’t have.
TheLegend
"Just say it 3 times..."
Diamond petitioning the court to walk away from the MLB Arizona Diamondback’s contract.
DBacks we’re one of the top creditors at the outset.
DBacks we’re one of the top creditors at the outset.
KevFu
Registered User
I don't see how the anti-trust applies to MLB taking over distribution from RSNs.
KevFu
Registered User
Bally's/DSG is specifically asking the court to walk away from the teams it does NOT own streaming rights to.
They don't have San Diego's, they walked away from San Diego.
They have Texas, they paid Texas.
They don't have Arizona, they're trying to walk away from Arizona.
They don't have San Diego's, they walked away from San Diego.
They have Texas, they paid Texas.
They don't have Arizona, they're trying to walk away from Arizona.
MMC
Global Moderator
Tom ServoMST3K
In search of a Steinbach Hero
KevFu
Registered User
Oh it definitely is for the local level. This is it, it has burst.
The national level probably won't burst because the networks and the streaming providers are partnered up.
Tom ServoMST3K
In search of a Steinbach Hero
The only thing that makes me hesitant is that Bally seemed like a complete disaster from inception onwards.
Exactly.
People continually ignore a ton of RSNs (YES, MSG, NESN, Spectrum Sportsnet, Root Sports NW, Monumental, etc. and etc.) when they make blanket statements about the state of sports media rights and/or RSNs/local.
DSG doesn't control the entirety of U.S. regional sports networks and their poor business decisions aren't connected to other RSNs. A different owner (e.g. if FOX still controlled them or if Disney was allowed to buy them) and there would be nothing about a 'burst' happening.
Even with others getting out of the RSN business, acting like ALL RSNs will be dead within the next 5 minutes is asinine.
KevFu
Registered User
Despite the appearances to the contrary, I agree with you completely.
The bubble bursting and RSNs "dying" are not the same thing. The lucrative RSNs you mentioned -- in New York, Los Angeles, Chicago, Bay Area, Philadelphia, DMV, MSP, Seattle and Denver -- of course they're fine. They're in mega markets where the volume of subscribers offsets the cost of rights fees.
What makes (or made) it "a bubble" is the ARTIFICIAL-ness. (I'm going to make up these numbers to illustrate a point here)
The SF Giants getting $100 million because there are 22 million cable subscribers from Bakersfield to Oregon is their fair market value.
The Cincinnati Reds getting $75 million because the average MLB team gets $75 million is the bubble. The Reds don't have 18m subscribers in their market (3/4 of the Giants market), so they're getting way more than their market worth. They're getting that money just because they're in the same business.
Bubbles are when the money flying around is NOT equal to the worth of the investment, but the hype surrounding the KIND of investment is so great, people throw money at bad investments, and eventually it bursts when the ROI doesn't justify the investment.
So when I say the bubble HAS BURST for local TV rights, I mean that the artificialness is gone.
The next big fight in baseball is going to be the league and small markets wanting to do DTC distribution and the big markets fighting like hell against it.
Chileiceman
Registered User
The easy solution there is just let each time decide whether to sell an in-market DTC service or not.
