Will Big Media/Tech Firms Bid on MLB’s Local Broadcasting Rights?

The regional sports network turmoil rippling through MLB might not be nearing its final innings. Not even close.

Diamond Sports Group, which owns and operates the nationwide group of Bally Sports networks affiliated with several major pro sports teams in the NBA, NHL, and MLB, is still in the process of restructuring following a bankruptcy declaration.

According to ESPN, Diamond is scheduled to present its new NBA and NHL deals to a bankruptcy judge on Sept. 3. If Diamond does not emerge from bankruptcy, the new deals will end at the conclusion of the leagues’ 2024-25 seasons.

Diamond also has 12 MLB teams in its portfolio. Three of them (the Texas Rangers, Cleveland Guardians, and Minnesota Twins) signed one-year contracts before the start of the season. Additionally, Diamond holds the direct-to-consumer rights for five smaller-market MLB teams.

The question looming over all the Diamond-affiliated teams: where will fans watch their games if their networks do not emerge from bankruptcy?

According to John Ourand of Puck, the answer could lie with some familiar players in the tech and media spaces:

Several of the world’s biggest media and technology companies — Amazon, Apple, Google/YouTube, and NBCUniversal — are checking in with MLB on a regular basis about the possibility of getting local rights as they come available. A Diamond default would strike the mother lode.

ESPN, for its part, has been in contact with MLB for more than a year — even before Diamond filed for bankruptcy. At a media day event in Bristol on Wednesday, chairman Jimmy Pitaro revealed that he would be very interested in putting those rights on the ESPN “flagship” streaming service he’s planning to launch next fall.

“If Major League Baseball is able to put together a group of teams, we would love to be able to do a larger deal,” he said.

The report raises a potentially intriguing scenario: fans who already subscribe to ESPN, Amazon Prime Video, Apple TV+, YouTube, and/or Peacock’s streaming packages can have their favorite team’s 162-game schedule added to their slate of viewing options. More likely, in many cases, such a package would entice new subscribers to invest in the existing streamer’s offerings.

With the apparent collapse of the RSN model in all but a handful of the nation’s largest media markets, this potential scenario only seems more likely.

For now, all eyes are on the outcome of Diamond Sports’ progress in court. It could determine whether the outside bids start flowing into MLB sooner or later. According to Puck, this appears to be a question of “when,” not “if.”