The Future of Regional Sports Networks: Will MLB Seize Local Broadcast Rights?

The question of whether MLB team-owned regional sports networks (RSNs) like YES Network, NESN, and MASN will eventually be shut down as MLB aims to claim all local broadcast rights has gained significant attention. While it remains unclear, the shift in how RSNs operate is evident, with some moving towards the NBA's free TV model. However, it is unlikely that MLB will attempt such a move due to the vast disparity in local markets.

Separate from the intent of the question, it is possible that in the next two to three generations, as distribution models become more streamlined, MLB could adopt a structure similar to MLS, which operates as a single-entity construct. Currently, individual localized networks like NESN carry a variety of programming beyond professional baseball, such as Boston Bruins hockey games, Worcester Red Sox Triple A games, and Canadian Football League (CFL) games.

Arguments and Challenges

The primary argument is that MLB can provide the same services free of charge or at a lower cost to the consumer. However, it’s crucial to note that MLB’s goal extends beyond just controlling professional baseball. They aim to expand and control all major and minor league baseball, much like how they control the NFL. This ambitious goal is heavily contested by collegiate football, where various conferences have their own TV networks and are reluctant to give up the significant revenue that eventually contributes to individual college sports programs.

Current Landscape and Regulations

Team-owned broadcast rights for all games are a matter of intense discussion. NKB controls national broadcasts on Fox, FS1, ESPN, and TBS, and splits the revenue among all 30 teams. No changes are planned for these games.

Local RSNs like MASN, NESN, and YES Network are separate entities that negotiated local broadcast rights with their respective teams. As long as their contracts contain streaming rights and remain in force, these networks and other networks that sign similar contracts and pay the necessary rights fees will continue to broadcast games.

The subscription nature of MASN2, NESN2, and the Yes Network, as well as the Marquee Network, reflects the current business model. Additionally, there will likely be extensive litigation involved due to the significant advertising dollars at stake. Current regulations, such as MLB’s antitrust exemption, play a crucial role in the ongoing discussion of local broadcast rights.

Conclusion

While the ultimate fate of RSNs remains to be seen, it is clear that regional markets have a significant say in the distribution models of sports content. The current structure of individual localized networks and their negotiation rights with teams ensures that there is a balance between consumer access and local control. As the landscape continues to evolve, stakeholders will need to navigate these complex dynamics to ensure the best outcomes for all parties involved.