MLB commissioner Rob Manfred confirmed the league’s interest in acquiring the 22 previously Fox-owned regional sports networks currently up for sale. Manfred first signaled interest in a conversation with the website JohnWallStreet last month and then publicly affirmed that interest in a Fox Business interview on Tuesday.
Earlier this year, 21st Century Fox sold those RSNs to Disney, but the Justice Department stipulated that Disney then had to sell these networks to avoid antitrust litigation. The headline early in the process was Amazon’s reported bid for the RSNs, a move that is in line with the tech giant’s recent moves to host NBA League Pass and PGA Tour Live.
These 22 RSNs broadcast games for 15 MLB teams and 29 pro franchises in other sports. Fox Sports Arizona, for instance, carries MLB’s Diamondbacks, the NBA’s Suns, and the NHL’s Coyotes. (Sports Business Journal tabulated the full list.)
In speaking with Fox Business’ Maria Bartiromo, Manfred explicitly said “we are interested in the regionals” before discussing their value.
“In 12 markets, baseball on the regional sports networks is the No. 1 programming throughout the summer,” Manfred told Fox Business. “In 24 of 25 markets that we operate in, we’re the number one programming on cable. So these regional sport networks are really valuable, valuable assets, and we think that the combination of that traditional mode of delivery and the digital rights that we control is an opportunity for the game.”
SportTechie Takeaway
If MLB were to purchase these RSNs and gain control over the in-market broadcast rights of half its franchises, that would go a long way toward replicating the NFL’s fully centralized model. Manfred added in the TV interview that “our fans want to be able to consume the games on the platforms that they’re naturally on,” while making reference to the exclusive weekly game on Facebook during the 2018 season. Each RSN currently pays about $2 million to the league for its in-market streaming rights, according to the New York Post, but MLB may shift those rights into the hands of the clubs.
That could be lucrative for each franchise given the resources of the major digital players, like Amazon and Google’s YouTubeTV. A few clubs in digital-friendly MLS already have in-market deals with YouTubeTV and Disney’s ESPN+ to be their primary carrier of matches. It’s unclear if ESPN+ could be a bidder for any of these individual MLB team rights given the mandate to sell the whole package.