Can I watch my favorite team? Is this the end of blackouts? What RSN mess means for MLB
Diamond Sports Group, which owns 19 regional sports networks (RSNs), has ventured into bankruptcy, a predictable development that will nonetheless have a major impact on the way fans watch games and the way teams profit off them.
Diamond, a Sinclair subsidiary that is known to viewers as Bally Sports, stands as the largest distributor of live sports within the United States — and it is in serious financial turmoil. The company took on $8 billion of debt to acquire the RSNs in 2019, watched as the rate of cord-cutting accelerated throughout the country and was forced to file for a Chapter 11 restructuring last week.
It’s a situation that promises to have wide-ranging effects, particularly, given the timing, within Major League Baseball. What does it mean for fans? For the future of live programming? For sports? Answers to some of the most pertinent questions — including, yes, blackouts — are below.
Which teams does this affect? Will fans be able to watch their games?
Diamond Sports Group runs the RSNs for 42 teams across MLB (14 teams), the NHL (12 teams) and the NBA (16 teams). The latter two leagues are navigating the tail end of their respective seasons, leaving time for this process to play out. MLB, however, is less than two weeks away from Opening Day, creating a heightened sense of urgency. But both MLB and Diamond Sports Group have been adamant that fans won’t miss any of their games.
Bally Sports broadcasts the Arizona Diamondbacks, Atlanta Braves, Cincinnati Reds, Cleveland Guardians, Detroit Tigers, Kansas City Royals, Los Angeles Angels, Miami Marlins, Milwaukee Brewers, Minnesota Twins, San Diego Padres, St. Louis Cardinals, Tampa Bay Rays and Texas Rangers.
Diamond Sports Group’s CEO, David Preschlack, who was hired in December, wrote in a statement last Tuesday that the company “will continue broadcasting games and connecting fans across the country with the sports and teams they love.” MLB, in its own statement, wrote: “Despite Diamond’s economic situation, there is every expectation that they will continue televising all games they are committed to during the bankruptcy process. Major League Baseball is ready to produce and distribute games to fans in their local markets in the event that Diamond or any other regional sports network is unable to do so as required by their agreement with our Clubs.”
If MLB needs to take over the broadcasts, how would it work?
Some of the details are still uncertain. Some have questioned whether MLB has the capability to take over broadcasting duties if it comes to that, but MLB appears confident it can pull it off. The details are still a bit hazy, but the league recently started a local media division, fronted by Billy Chambers, Sinclair’s former chief financial officer. The short-term plan would be to offer streaming through its MLB.TV app at a yet-to-be-determined price (it’ll be cheaper than the current price to stream out-of-market games, according to a league source) and also air games on a yet-to-be-determined cable channel.
MLB would have to negotiate deals with cable companies to make the latter happen. That would take time, but a league source downplayed that factor, pointing to how long Diamond’s financial unraveling has been anticipated. Putting together games also requires a lot of employees (producers, camera operators, broadcasters, etc.). MLB, a league source said, might turn to a lot of the people who worked those jobs for Bally Sports in their respective markets, many of whom do so on a freelance basis.
So … what happens next? How long until we know where the 14 teams will end up?
A lot could happen really fast. Between now and April 30, 13 of the 14 teams under the Bally Sports umbrella are owed their rights fees, an industry source said, potentially forcing a lot of quick decisions from Diamond Sports Group and its creditors.
In order to remain in business, Diamond needs to maintain agreements with at least some of its teams. And in order to maintain those agreements, they need to, well, pay them. Skipping payments would allow said teams to break free from their contracts, as MLB commissioner Rob Manfred mentioned last month.
A breach of contract triggers a court hearing, and that process can take anywhere from a few days to a few months. While that is playing out, Diamond would be incentivized to continue airing games because it would be generating subscription revenue without having to pay rights fees.
But there’s a good chance that Diamond’s creditors eventually decide to drop some of the least profitable teams from the portfolio. In that case, MLB would need to step in. A league source anticipates that MLB will handle broadcasting for at least five teams in the very near future. So far, Diamond Sports Group has missed payments to the D-backs and, more recently, the Padres, triggering the contractual grace period that will probably lead to MLB taking over.
Can MLB really get the rights to the Bally Sports teams so quickly?
The answer to that question will be dictated entirely by what Diamond Sports Group decides to do with its portfolio. Long term, the company hopes to build a more stable business by propping up its direct-to-consumer platform, Bally Sports+. But streaming rights are needed. Diamond Sports Group has the right to stream for all 16 of its NBA teams and for all 12 of its NHL teams. But it can only do so with five of the 14 MLB teams — the Royals, Brewers, Rays, Marlins and Tigers, all of which are smaller-market clubs. It wants to acquire streaming rights for the nine other teams and eventually turn its platform into a one-stop shop for fans, where they can also purchase tickets, buy merchandise and place bets.
But MLB, sources said, has been unwilling to provide more streaming rights to a company that has not proved to be financially stable. MLB has no intention of also offering the rights to sell tickets or merchandise to Diamond Sports Group, essentially turning the company into a direct competitor.
The bankruptcy proceedings will turn Diamond’s debt into equity for its largest secured creditors. Those creditors will essentially run the company, and not securing streaming rights is expected to significantly influence which teams those creditors decide to hold onto and which teams they decide to shed. We’ve already seen the beginning of this play out with the D-backs and Padres. Other teams will follow.
Could this ultimately mean the end of blackouts?
Potentially. Here’s how it would work, in an ideal sense: As teams free themselves from their RSN contracts, either intentionally when their deals expire or unintentionally when they’re not paid what’s owed to them, MLB would absorb them one by one. At that point, it can air games, say, on its Extra Innings channel (the long-term plan would be to regionalize MLB Network) and also through MLB.TV for local fans, since there would no longer be a competitor in the local market blocking them from doing so.
It isn’t quite so simple, and it would require making deals with cable companies that also provide internet service. But MLB seems confident it can pull it off. In order to wipe blackouts out entirely, MLB needs to secure the television rights to all 30 teams. At the moment, it has the rights to zero — and that will be the case as long as Diamond continues to meet its contractual obligations. However, several sources within MLB and those knowledgeable on the RSN industry predict that soon teams will start to be shed, with Diamond’s creditors eliminating the less profitable ones.
How will all of this affect the product on the field — revenue, payrolls, etc.?
In the short term, it won’t have any impact; payrolls are set, contracts are fully guaranteed.
Long term … well, that’s what’s causing concern.
In the aggregate, major league teams draw somewhere in the neighborhood of 20% of their revenue through their RSN deals, many of which are robust (for example, near the end of 2011, the Angels signed a 20-year deal worth a reported $3 billion with what was then Fox). Diamond’s financial turmoil — and more broadly the continual erosion of the traditional cable model — promises to alter the financial landscape of the sport. Teams are all but guaranteed to generate less revenue because of it in the short term — but MLB is hopeful that the trade-off will be long-term gains.
The league’s ultimate goal is to place broadcasting rights — both through the linear cable model and on over-the-top platforms — under one umbrella. This has long been MLB’s plan; Diamond’s Chapter 11 filing simply put the wheels in motion a little earlier than the league would have wanted.
When all games are broadcast on streaming platforms, which many consider an inevitability, the league would aim to create a direct line to revenue from subscriptions and advertising, while also hoping to strike deals with other streaming companies. Under a model like this, all the revenue would essentially fall in one bucket, and it would be up to the 30 owners — and the MLB Players’ Association is also going to want to be involved — to determine how it gets split up.
A league source, pointing to the rapid rate at which the traditional cable model is deteriorating, predicted that all 30 teams would fall under its umbrella within two to three years. But some league executives believe that highly profitable big-market teams such as the New York Yankees and Boston Red Sox, both of whom own their networks, would never agree to that type of structure.
Speaking of the Yankees and Red Sox, what’s the status of the 16 teams NOT involved with Diamond Sports Group?
Four teams — the Colorado Rockies, Houston Astros, Pittsburgh Pirates and, to a lesser extent, Seattle Mariners — are under Warner Bros. Discovery, which previously revealed plans to shed its RSN commitments by the end of the month, creating a completely different scenario. (The other 12 major league teams are with broadcasting companies that, at least for now, are stable.)
Warner Bros. Discovery announced in late February that it was planning to exit the regional sports business, saying teams had until the end of March to reclaim their media rights or the company would move into a Chapter 7 liquidation. The company, a league source said, has been a cooperative partner through the process. The expectation is that broadcasts for the Pirates, Rockies and Astros will be unchanged in 2023. In 2024, they’ll fold into MLB’s broader strategy. The Mariners, meanwhile, run their own RSN and pay Warner Bros. Discovery a service fee to operate it for them. They are expected to be unaffected.
For now.
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Chris Low, ESPN Senior Writer
Tennessee‘s Nico Iamaleava has been cleared medically to play Saturday against Georgia and is set to return as the Vols’ starting quarterback, sources told ESPN.
Iamaleava, a redshirt freshman, missed the second half of the 33-14 win over Mississippi State last week after suffering a blow to the head. He was listed as questionable earlier this week on the SEC availability report but has been removed in the latest report.
Iamaleava practiced this week, including team periods, and there was optimism among the staff that he was trending in the right direction and would be able to play. But the final call was made by medical personnel. Iamaleava was examined by doctors for what sources told ESPN were concussion-like symptoms after leaving the Mississippi State game. He did not return to the sideline for the second half.
Tennessee coach Josh Heupel said on Monday that he felt like Iamaleava would be in “great shape for Saturday” and noted that Iamaleava was with the team earlier Monday morning for meetings and team activities. The Vols’ first full-scale practice was Tuesday.
Iamaleava was having his most productive outing against an SEC team this season before leaving the game against Mississippi State. He completed 8 of 13 passes for 174 yards, no interceptions and a pair of touchdowns as Tennessee built a 20-7 halftime lead. In Iamaleava’s previous five SEC games, he had accounted for three touchdowns and turned it over five times. He was also sacked 15 times in those five games.
Redshirt senior Gaston Moore filled in for Iamaleava in the second half last week and finished 5-of-8 for 38 yards with no touchdowns or interceptions.
Getting Iamaleava back for the Georgia game is big news for Tennessee, which is right in the middle of the SEC championship race and College Football Playoff picture.
Receiver Dont’e Thornton (hand) has also been given the green light to play for Tennessee after earlier being listed as questionable.
Week 12 is here as we take a look at an SEC matchup that has College Football Playoff implications, learn about three of the nation’s top passers who all played under the same coach and see what’s going on in the Big 12.
No. 7 Tennessee will visit Sanford Stadium as it takes on conference opponent No. 12 Georgia on Saturday night. With so much at stake, what can each team improve on ahead of this SEC showdown?
The Big 12 has six teams in the hunt for a spot in the conference title game. With the final CFP rankings coming out in less than a month, what scenario looks most realistic for the conference in terms of how many of its teams could make the 12-team field?
Our college football experts preview big games and storylines ahead of the Week 12 slate.
Jump to a section:
Tennessee-Georgia | The coach behind three top QB passers
What’s going on in the Big 12 | Quotes of the Week
What has each team done well in conference play? What improvements can be made?
It has been a historic (and dominant) season for Tennessee’s defense, which has yet to give up more than 19 points in any of its nine games. Against SEC competition, the Volunteers lead the conference in scoring defense, giving up 16.7 points per game, and also lead the way in third-down defense and red zone defense. In other words, they’ve given up very little of anything on defense and are buoyed by a line that’s both talented and deep. Tennessee plays a ton of players up front and has been especially good at forcing key turnovers. In 23 trips inside its own 20-yard line, the Vols have forced six turnovers.
The reality is that Tennessee has played to its defense for much of this season out of necessity. The offense has lacked consistency and struggled to generate explosive plays, particularly in the passing game. It’s not all on redshirt freshman quarterback Nico Iamaleava, either. Iamaleava has thrown only five touchdown passes in six SEC games, and the Vols are tied for 10th with an average of 7.5 yards per completion. Iamaleava, who sustained a head injury in a win over Mississippi State last week, has been the victim of poor pass protection at times, and his receivers have dropped some costly passes. Iamaleava has also been shaky when it comes to overthrowing receivers and occasionally holding onto the ball too long.
The bright spot on offense for Tennessee has been running back Dylan Sampson, who has a school-record 20 rushing touchdowns. He has been a constant for the Vols on offense and has an SEC-leading 772 rushing yards and 11 touchdowns in conference play. As good as he has been, the Vols are probably going to need more from their passing game to win in Athens. — Chris Low
The Bulldogs didn’t do much of anything well in last week’s 28-10 loss at Ole Miss, which was the first time in a long time that Kirby Smart’s team was manhandled on the lines of scrimmage.
The good news for Georgia: It’s heading home to Sanford Stadium for the first time in more than a month. Georgia hasn’t dropped back-to-back games in the regular season since 2016, Smart’s first season, and it has bounced back after each of its past eight losses. The Bulldogs have won seven of their past eight games against the Volunteers.
For all of quarterback Carson Beck‘s turnovers, Georgia’s problems on offense probably start up front. The offensive line hasn’t done a good job of protecting him, and the Bulldogs’ lack of a potent running game has prevented them from effectively utilizing play-action passes. Their banged-up offensive line is going to face another formidable defensive front Saturday. Georgia has 27 dropped passes, fourth most in the FBS, according to TruMedia, so its receivers need to become more reliable as well. — Mark Schlabach
The coach behind three of college football’s top passers
Miami‘s Cam Ward, Washington State‘s John Mateer and North Texas‘ Chandler Morris are three of the top five quarterbacks in total offense this season in FBS. All three have the same head coach to thank for where they are today.
North Texas coach Eric Morris coached Ward at Incarnate Word and Washington State, recruited Mateer to the Cougars and signed Morris out of the transfer portal this offseason. All three hailed from Texas and are putting up big numbers this season. Morris, a Mike Leach disciple, knows what he’s looking for when it comes to QBs.
For each one, the journey was different. Ward was a zero-star recruit out of West Columbia, Texas, played in a wing-T offense and had no scholarship offers. But he showed up to Incarnate Word’s camp in 2019 and impressed with his quick release and accuracy. Morris saw appealing traits, too, in Ward’s multisport talents.
“He was such a good basketball player,” Morris said. “He was a bigger guy who could really handle the ball and move with ease. He had a twitch and quickness about him that was almost Mahomes-esque, where he’s not fast but you see him get out of the pocket and scramble and he’s nifty on his feet. He saw the floor great and shot the basketball great.
“It might be easier at an FCS school to take that risk, but it was something we were really confident in.”
Ward came in with extreme confidence, telling coaches he’d win the starting job over their returning all-conference player (and he did). He followed Morris to Pullman, Washington, out of loyalty to the coach who believed in him. Now he’s playing on a big stage, chasing a College Football Playoff bid and a Heisman Trophy with the No. 9 Hurricanes.
“It’s been fun to watch him flourish and get rewarded for being patient all these years,” Morris said.
When Morris left UIW to become Washington State’s offensive coordinator in 2022, he brought Ward but needed another QB. On his first recruiting trip in Texas, he stopped by to check out Mateer. The two-star recruit had a prolific senior season at Little Elm High School but was committed to Central Arkansas. Morris didn’t understand what FBS programs were missing and convinced Mateer to flip.
After two seasons behind Ward, Mateer has emerged as one of the top dual-threat QBs in college football with 2,332 passing yards, 805 rushing yards (excluding sacks) and 33 total TDs.
“I think the sky’s the limit,” Ward said. “He’s just so dang hard to tackle in the open field. Just a kid that loves ball and was under-recruited. The tide’s turned and he ends up being a big-time ballplayer.”
Chandler Morris was not an under-the-radar talent, but he’s having his best season yet at North Texas. He began his career at Oklahoma, won the starting job at TCU in 2022, sustained a knee injury in its season opener and then watched Max Duggan lead the Horned Frogs to the national title game.
Morris had a six-game stint as TCU’s starter last season before injuring the same knee. At UNT, he’s leading the nation’s No. 3 passing offense with 3,244 total yards and 30 TDs. Like Ward and Mateer, he processes information quickly, makes plays with his feet and throws outside the pocket with accuracy. If you ask Eric Morris, those traits are a must in today’s game. When paired with his version of Air Raid ball, you get big-time results.
“It’s been fun to see him get his swagger back,” Morris said.
Eric Morris points to Patrick Mahomes, Lamar Jackson and Jayden Daniels. The QBs thriving at the highest level are becoming unstoppable by creating plays out of the pocket. And so are his guys.
“Everybody obviously watches Cam and the magic he makes,” Morris said, “but I think all three of ’em can make plays when it’s not a perfect play call. There are a bunch of really good pure passers nowadays, but that’s what sets them all apart.” — Max Olson
What’s going on in the Big 12?
Two-thirds of the way through the Big 12 schedule, six teams are still in the hunt for a title-game appearance: BYU (6-0), Colorado (5-1), Arizona State, Iowa State, Kansas State and West Virginia, all of which are 4-2. There are too many variables to discuss all the scenarios, but the conference has a straightforward tiebreaker policy.
It’s possible to come up with scenarios in which the Big 12 could get two bids, one bid or shut out altogether.
For the Big 12 to get two bids, BYU probably would have to finish 12-0, then lose a close game in the championship to a two-loss team (Colorado, Iowa State or Kansas State). A 12-1 BYU team would get consideration, but it would become a question of how far it would fall and what else happens around the country.
The most likely scenario is the Big 12 will get one team in: whichever one wins the conference title game. If BYU wins out, it will have a bye, but if it slips up even once — or if another team wins the title — Boise State might be in position to get a first-round bye, assuming the Broncos win out.
The doomsday scenario in the Big 12 is if the conference champion has two or three losses and Army and Boise State win out. If that’s the case, there is a good possibility both of those schools would be ranked ahead of the Big 12 champion and the Big 12 would be left out. — Kyle Bonagura
Quotes of the Week
“They’re stubborn, man. They’re physical. He is an elite runner. The runs they run are sometimes nontraditional. They run some runs that other people don’t run because of the space in the box. He’s very patient. He hits small creases. He’s hard to tackle. How many touchdowns has he got in the SEC? Twenty-something? That’s crazy. In the SEC? The SEC is the hardest league in the world to run the ball in on because they’ve got the most size defensive lineman, and he continues to do it at a crazy pace to me.” — Kirby Smart on Volunteers tailback Dylan Sampson.
“I never try to take a step back. I try to take a step up. I’m always putting my head out the window. I’m trying to see around the corner, not trying to see straight ahead. It’s normalcy for everybody to see what’s in front of them. I’m trying to see around the corner. That’s the relationship I have with the Lord, to help me see around the corner so I can help navigate these young men as well as the women that’s attached to our program to a better way and a better life. So I don’t get caught up in the ‘You go, boys!’ or the ‘You ain’t nothing.’ You know, if I would’ve listened to you guys earlier, I’ve gotta listen to you now. So I might as well just put some headphones on and block you out. Notice I don’t have a sponsor for headphones, but that would’ve been a good placement for a sponsor.” — Deion Sanders when asked if he takes time to step back and appreciate the magnitude of Colorado’s turnaround.
“I hope anyone who has ambitions about playing in the National Football League, let’s see what you’ve got against Clemson. Let’s see you play your best game here. If you weren’t focused for Virginia, which I can’t imagine you weren’t — and I’m not saying anybody was not focused — but if they didn’t get your focus, I imagine Clemson will get your focus when you put the tape on.” — Pitt coach Pat Narduzzi on whether playing Clemson gets the attention of his players.
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