A battle is brewing in the world of Major League Baseball (MLB), and it's all about control and money. The future of local TV rights is at stake, and it could change the game for fans and teams alike.
Commissioner Rob Manfred has a bold plan: he wants to bring all 30 MLB teams' local TV rights under the league's control, along with the national rights. His theory? By bundling these rights, he can attract higher bids and increase revenue. But here's where it gets controversial: not all teams are on board with this idea.
Take the Chicago Cubs, for instance. Their chairman, Tom Ricketts, has expressed a love for their independence. And they're not alone; teams like the Dodgers, Yankees, and Red Sox, who own their regional sports networks (RSNs), are likely to resist giving up their local TV rights. After all, these rights are a significant source of revenue for them.
However, Manfred has a strategy. He aims to secure as many local rights as possible by 2028, when all current national TV deals expire. According to MLB's constitution, a majority owner vote is required for any league action related to video media rights, and a three-quarters vote is needed for anything affecting revenue sharing. So, to force the issue, Manfred would need 23 of the 30 owners on his side. I suspect there might be a few teams ready to put up a fight.
MLB currently produces and distributes games for 14 teams, with more potentially joining soon. This is due to the failure of Main Street Sports Group, formerly Fox Sports RSNs. These teams could be a part of Manfred's plan, but it's not a given.
Now, here's the crux of the matter: Manfred wants to redistribute TV revenue more evenly among owners. Currently, teams share some local TV money but keep a larger percentage of the proceeds. By selling national TV rights as a package, he believes he can bring in enough new money to satisfy the big-market teams, who possess the most valuable rights. And this is where the salary cap comes into play. A cap, if implemented, could be a powerful tool to convince these teams to go along with his plan.
But there's a catch. The salary cap is a highly debated topic, and its implementation would require a lot more than just a simple agreement. It would need a floor, a guaranteed percentage of league revenue for players, and open books from the owners.
For fans, the potential number of national packages MLB sells in 2029 is a big deal. Manfred wants to end blackouts and make it easier for fans to watch games. But if MLB sells multiple national packages, fans might find themselves having to purchase several services just to watch a full season of games. This is a significant pain point for many fans, who are tired of having to juggle multiple subscriptions.
According to MLB's constitution, teams are limited to 17 or 18 exclusive national games per season. Last year, the Cubs had 17 games across various channels. This year, with NBC joining the mix, fans might need to subscribe to Peacock to ensure they don't miss any Cubs games.
So, there you have it. A complex web of rights, revenue, and fan experience. As we await further developments, one thing is clear: the future of MLB's local TV rights is a hotly contested issue, and it will be interesting to see how this plays out.
