Add another team to the increasing group of current and former Bally RSN clubs that are seeing possible payroll impacts because of the Diamond Sports bankruptcy. (As a reminder, Diamond Sports owns the Bally RSNs, they are in bankruptcy, and they are not yet committing to paying out their TV rights contracts in 2024.)
We know that the Padres and Diamondbacks already saw their rights deals rejected by Diamond Sports in the bankruptcy proceedings this past season, and MLB took over broadcasts with an 80 cents on the dollar backstop for those teams, a promise that is NOT being guaranteed for 2024. The Twins recently also saw their deal rejected, and they’ve said spending would be impacted. The Cardinals have conceded that RSN uncertainty has them trying to bolster other revenue streams.
Now you can add the Cleveland Guardians to the list of teams feeling the impact of uncertainty in one of their key revenue streams.
From Away Back Gone, via Cleveland.com:
“Antonetti also cited the current uncertainty around the team’s local TV contract as a reason for Quantrill’s DFA decision. As things currently stand, there’s no guarantee that Bally Sports will even carry Guardians games next season, which would be a major blow to the team financially, as Bally’s parent company Diamond Sports Group quite reluctantly paid the team $55 million in 2023.”
If Bally drops the Guardians, they will have to figure out whether to allow MLB to take their games straight to market via streaming (which will not come close to replicating that $55 million), or whether to patch-work some other local deals.
We’ve seen in other sports that deals have been struck with local over-the-air channels to air the games, which dramatically increases the reach of the game – great for fans – but almost certainly dramatically cuts into the revenue. (At least initially, since more happy fans in the long run has to be good for business, right?)
A reminder that this ongoing issue impacts every single MLB that currently has a broadcast rights deal with a Bally RSN: Padres, Twins, Diamondbacks, Cardinals, Guardians, Tigers, Marlins, Reds, Royals, Angels, Braves, Rays, Rangers, and Brewers. Some organizations are better position than the others to weather the storm of course, either because their revenue streams are sufficiently diversified, or because their local market’s appetite for the games is so strong that figuring out an alternative broadcast approach won’t be too difficult.
The broader impact here is pretty significant, as it could lead to a number of teams that cannot push particularly hard in free agency this offseason AND may wind up turning more to the trade market.
You would also wonder about some specific circumstances, like, might the Guardians be looking to move someone out who has a significant salary? I’m not sure whether they’re ready to actually consider Jose Ramirez trade offers – or whether he’s ready to move on, as he has no-trade rights – but he’d get a bounty in any market. That’s especially true this year.
Also, Shane Bieber was already available (there are big pluses and minuses there), but yeah, he’s extremely available.