The MLB was able to take over local TV broadcasts from 14 teams
About $1 billion of Major League Baseball’s revenue is at risk if a cable TV company fails to make payments for local broadcast rights to 14 teams, and the sport is preparing to take on telecasts.
“I think you should assume that if Diamond isn’t broadcasting, we’ll be able to step in,” baseball commissioner Rob Manfred said Thursday after an owners meeting. “Our goal would be to make games available not only on the traditional cable bundle, but also on the digital side.”
Sinclair acquired 21 regional sports networks from The Walt Disney Co. in 2019, which it acquired as part of its 21st Century Fox purchase. Sinclair also holds rights to 16 NBA teams and 12 NHL franchises, and teams are concerned that in an era of cable cutting they may not receive payments from Diamond Sports Group, the Sinclair Broadcast Group subsidiary that operates the networks under the name Bally Sports operates.
“What we do depends largely on how Diamond and the creditors play their cards and what they choose,” Manfred said. “Our main goal in terms of preparation is that if Diamond doesn’t air for whatever reason, we want to be able to make sure our fans get their games.”
When asked if it was $1 billion or $2 billion, Manfred said, “Closer on the first number than on the second.”
Billy Chambers, who had been Sinclair’s top financial offer, joined MLB this month in a new position as executive vice president of local media.
Diamond owns local broadcast rights for the Arizona Diamondbacks, Atlanta Braves, Cincinnati Reds, Cleveland Guardians, Detroit Tigers, Kansas City Royals, Los Angeles Angels, Miami Marlins, Milwaukee Brewers, Minnesota Twins, St. Louis Cardinals, San Diego Padres, Tampa Bay Rays and Texas Rangers.
Baseball executives met at The Breakers, a 97-year-old Renaissance-style hotel. The lobby was filled with a mix of baseball executives and women in pink floral sundresses, some with hats, attending the Breast Cancer Research Foundation’s Palm Beach Hot Pink Luncheon and Symposium.
Oakland/Las Vegas Ballpark
On another important issue, Manfred said he views athletics’ search for a new stadium as “Oakland and/or Las Vegas.”
“This year they have a kind of deadline,” he said. “They need to have an agreement by next January – really important from a club perspective.”
Ray’s Stadium
Tampa Bay on Jan. 30 announced plans to build a baseball stadium near Tropicana Field in St. Petersburg. The team has been looking for a new stadium for 15 years, and owner Stu Sternberg says the Rays cannot afford to stay at their current stadium when their lease expires after the 2027 season.
“We didn’t talk about the Rays situation,” Manfred said. “Everything that has happened lately Stu covered in great detail at the last owners meeting. We had a nice layout of what was to come, so there wasn’t really an update there.”
Starting extra innings with second runner
The rule was passed as a pandemic measure for the 2020 season and is likely to remain in place.
“The clubs discussed the permanence of this rule. It has to go back to the field committee,” said Manfred. “Clubs have gotten used to the extra innings rule. I think it’s well-liked by players in general. I’m not betting on anything but if you were to make a bet I think it’s a pretty good bet that it will continue.
income gap
A new Economic Reform Committee met this week.
“Sales differentials, a really important topic in the industry right now. It has nothing to do with the local media problems,” Manfred said.
Manfred said MLB had $10.8 billion in revenue last year. Some teams are alarmed that the New York Mets, entering their third season under owner Steve Cohen, have increased payrolls to about $370 million — far above the Los Angeles Dodgers’ record $291 million in 2015.
“I think people know what happened over the winter. I think they understand that it happened within the confines of the system they negotiated and there’s not much point in arguing about it,” Manfred said. “Overall I think the group has matured for the better.”
Executive Council
San Francisco Chairman Greg Johnson replaced Colorado Chairman Dick Montfort and Cleveland Chairman Paul Dolan replaced major Boston owner John Henry on the Executive Council.
The council also includes Los Angeles Dodgers chairman Mark Walter and Detroit Tigers chairman Christopher Ilitch (whose term expires in 2024); Philadelphia Managing Partner John Middleton and Kansas City Chairman John Sherman (2025) and Arizona Managing General Partner Ken Kendrick and Seattle Chairman John Stanton (2026)
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