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MLB is bracing for a whopping $1-2 billion loss if its local broadcaster fails to make payments for telecasting rights to 14 teams. The loss of such a huge sum of money could be devastating to MLB’s financial strength. Diamond Sports Group LLC, a failing subsidiary of Sinclair Broadcast Group that operates regional sports networks, is reportedly preparing to file for bankruptcy.
However, MLB is already taking steps to mitigate the potential revenue loss and is preparing to take over Sinclair's local TV broadcasts. As a result of this decision, MLB will be able to transition to Direct-to-Consumer (DTC) streaming and reclaim local media rights. Furthermore, easing the league's local blackout regulation, which is a major complaint, could be beneficial to customers.
After an extensive meeting on Thursday, here's what Major League Baseball Commissioner Rob Manfred shared with the news media about the telecasting debacle:
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"I think you should assume that if Diamond (Diamond Sports Group LLC, a subsidiary of Sinclair Broadcast Group, Inc.) doesn't broadcast, we'll be in a position to step in. Our goal would be to make games available not only within the traditional cable bundle but on the digital side, as well."
He added:
"What we do is largely dependent on how Diamond (Diamond Sports Group LLC, a subsidiary of Sinclair Broadcast Group, Inc.) and the creditors play their cards, what they decide to do. Our No. 1 goal in terms of preparations is that if for some reason Diamond isn't broadcasting, that we want to be in a position to make sure our fans are going to get their games."
"Concerned about a possible bankruptcy for Sinclair, the company that owns local broadcasting rights to 14 of the 30 Major League Baseball teams, the league has formed a new economic study committee." - 90 YS Sports
Sinclair's purchase includes exclusive local rights to 16 NBA clubs and 12 NHL teams in addition to Major League Baseball.
MLB's lucrative partnership with Apple
Major League Baseball struck an $85 million partnership with Apple last year, which led the tech giant to enter the live baseball coverage arena. Consequently, MLB broadened its reach to both domestic and foreign audiences.
"Apple and Major League Baseball announced a new partnership." - The Sporting News
This service, however, will be available exclusively to individuals who have subscribed to Apple TV+.
