In recent years, regional sports networks have faced numerous financial challenges, including declining viewership and the rise of streaming services, leading to difficulties in paying for the broadcasting rights of major league teams. This has left Major League Baseball (MLB) with a possible takeover of local broadcasts for 17 teams as these regional sports networks struggle financially.
MLB close to taking over multiple local broadcasts
In response to this changing landscape, MLB has established a new local media department and hired three new executives to prepare for a possible takeover of these local broadcasts. The new hires are Doug Johnson, who will serve as senior vice president and executive producer of local media; Greg Pennell, who will be the senior vice president of local media; and Kendall Burgess, who will serve as vice president of local media technical operations.
The main objective of this new department is to ensure that MLB can continue to distribute games despite the financial difficulties faced by regional sports networks. MLB Chief Revenue Officer Noah Garden noted that the new hires are an important step in their preparation to address the changing landscape of MLB game distribution in light of the increasing challenges and pressure facing regional sports networks.
Bally Sports may be close to filing for bankruptcy
The Diamond Sports Group, which operates under the name Bally Sports, has the rights to 14 major league teams and has skipped about $140 million in interest payments. The company has nearly $1 billion in rights payments, mostly to baseball teams, due in the first quarter this year, and a bankruptcy filing is possible. Additionally, Warner Bros. Discovery’s AT&T SportsNet networks recently informed the Colorado Rockies, Houston Astros, and Pittsburgh Pirates that they do not have the money to make scheduled rights fee payments.
Overall, the new hires and the establishment of a new local media department reflect MLB’s commitment to finding new ways to distribute games and address the challenges faced by regional sports networks. The new department and executives will report to MLB’s executive vice president for local media, Billy Chambers, who joined the company from Sinclair Broadcast Group.
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