Bally Sports RSNs Reportedly Preparing for Bankruptcy

[Seth Stohs]

https://cordcuttersnews.com/bally-sports-rsns-are-reportedly-preparing-for-bankruptcy/ 

Let me start by noting that I don't know anything about the credibility of Cord Cutter News or their audience. However, I thought this story was interesting. Numbers (credited to Forbes), not that they are like $8.6 billion in debt. Apparently payments to the NBA and NHL would be placed on hold if they file for bankruptcy. 

I know this topic has been interesting and unfortunately important to Twins fans for a couple of years. 

Quote

Recently a growing number of networks, including DISH have dropped Bally Sports Network. To help with these issues, Sinclair has launched a $20 a month subscription service to get Bally Sports networks without cable TV. So far, though, fans seem not to be running to the service in the numbers expected.

It will be interesting to see how this plays out. 

[CRF]

If for some reason I'm not able to somehow get and watch the Twins games on tv...well, you might as well shove me in the oven right now. I couldn't deal with that. No way could I put up with listening to Dazzle on the radio for every single game. 

[Brock Beauchamp]

Well, this just breaks my heart.

[Major League Ready]

I have been thinking for a while that the TV situation is obviously not under control.  MLB needs to take charge and develop a plan where they have greater control of the accessibility of their product.  This has been deteriorating for a few years now.  Now, that's easier said than done given there are many contracts in place for 10+ years out.  It's very complicated and we don't have nearly enough information to know what's the right plan.  I just hope they figure it out.

[Brock Beauchamp]

1 minute ago, Major League Ready said:

I have been thinking for a while that the TV situation is obviously not under control.  MLB needs to take charge and develop a plan where they have greater control of the accessibility of their product.  This has been deteriorating for a few years now.  Now, that's easier said than done given there are many contracts in place for 10+ years out.  It's very complicated and we don't have nearly enough information to know what's the right plan.  I just hope they figure it out.

I hope the NBA, NHL, and MLB team up together to buy the Bally RSNs, which is probably what they should have done when Fox sold.

If not that, sell to a new media company like Amazon or Apple and let them dismantle this archaic system.

[NotAboutWinning]

And don't the RSN contracts provide a significant source of revenue for many of the teams?

[Linus]

This is a pipe dream but….MLB should create a universal streaming option that includes all teams, no blackouts etc.  All clubs would be required to participate as their current contracts expire. All revenue is shared equally amongst all the clubs. 
This would solve the income disparity problem for the most part and make labor negotiations much more straightforward. There could then be a payroll floor which will eliminate tanking and teams not trying. 
MLB would have amazing marketing opportunities. Net effect could be a resurgence of interest in what is now a declining product. 

[Cris E]

The local TV contract revenues are both huge and poorly hedged against anything happening to subscriptions. It not like these regional companies that signed billion dollar contracts have alternative income sources that'll begin to cover them if subs begin to fall off.

But the scary thing is that everyone could see this trend emerging for years, even before covid came along. And Sinclair spent like a drunken sailor in spite of the risks and is now waking up in the brig, hung over and trying to add up the costs. If the major sports leagues all pitch in and buy the RSNs it should be at a huge discount. But maybe they should just buy the contracts back and let the RSNs go broke and then re-sell the games to the teams.  It could flatten the local money to the point where it breaks the league, so I don't expect too much along these lines,  but as a small/medium market fan that wouldn't bother me too much.  

[CRF]

5 minutes ago, Linus said:

This is a pipe dream but….MLB should create a universal streaming option that includes all teams, no blackouts etc.  All clubs would be required to participate as their current contracts expire. All revenue is shared equally amongst all the clubs. 
This would solve the income disparity problem for the most part and make labor negotiations much more straightforward. There could then be a payroll floor which will eliminate tanking and teams not trying. 
MLB would have amazing marketing opportunities. Net effect could be a resurgence of interest in what is now a declining product. 

It'll never happen...that makes too much sense.

[Teflon]

MLB also needs to figure out how to properly compensate the RSN's so this can happen:

Major League Baseball Seeks End To Local Markets Blackouts

Imagine being a fan in Iowa and having the Twins, Royals, Cardinals, Brewers, Cubs and White Sox all blacked out! This is how baseball becomes a niche sport.

[Cris E]

The thing about using local cable to wring the money out is that Charter or Cox (or whoever) can stuff FSN (or whatever) channel into the basic package and millions of people will pay for it that wouldn't ordinarily watch a minute of sports. When MLB is a separate package folks are free to not sign up for it, and most do not. The amount of money on the table gets much, much smaller if you take local cable out of the picture, so it's going to take some fancy stepping to not gut the lucrative basic cable positioning. It's not like MLB hasn't noticed that blackouts suck, but no one has wanted to screw with the golden goose. 

[DJL44]

2 minutes ago, Cris E said:

maybe they should just buy the contracts back

Just wait for them to end up in breach of contract.

The problem is they won't find another option as lucrative. The Twins need Sinclair as a bidder - otherwise it's just NBC/Comcast and AT&T who are left.

It would be great if the Twins were the first team to drop cable and go directly to streaming, though my dad might not be able to figure out how to access streaming.

[jmlease1]

1 hour ago, Brock Beauchamp said:

Well, this just breaks my heart.

Couldn't happen to a nicer bunch of douchebags.