Why MLB Feels RSN Pinch More Than Other Leagues

Local media, including radio, is 23% of MLB team revenue. It is the third biggest revenue stream after central revenue and tickets, but it is by far the biggest exposure to regional sports networks of any major U.S. sports league, and the NBA’s 13% of revenue will dip further when its next national TV deals commence in 2025. Most MLB teams are in the 18% to 25% range, but the two Los Angeles franchises lean on local media for more than 30% of their revenue after netting out their revenue sharing payments….

Baseball RSN ratings were and still are elite. Last season, it was the No. 1 programming in primetime on cable in 22 of 29 markets and 13 out of 29 when including broadcast networks, according to Nielsen (Toronto data is not available). But MLB is facing a reckoning accelerated by Diamond Sports’ $8 billion debt load. The company owes $1.92 billion in rights fees in 2023 with roughly 55% earmarked for baseball, but it skipped its $140 million debt payment in February, telegraphing last week’s bankruptcy filing.

Baseball’s audience skews older than other U.S. leagues, and the league is hoping a revamped distribution model that allows fans to access games through multiple platforms will allow it to reach a younger audience that skews higher on cord-cutters.

“The content has not suddenly gone from being valuable to being valueless,” Ed Desser, a media consultant who has negotiated more than 70 sports rights deals, said in a phone interview. “Baseball will figure out new ways to monetize it, and there are advantages to a streaming world as it allows you to have more of a direct relationship with your consumer.”