The regional sports network landscape in North America faces a critical juncture as Main Street Sports Group (MSGS), the operator of FanDuel Sports Network, navigates financial pressures and a potential acquisition by global streaming platform DAZN. MSGS holds local broadcast rights for 29 professional teams across Major League Baseball (MLB), the National Basketball Association (NBA), and the National Hockey League (NHL), including nine MLB clubs such as the Atlanta Braves, Cincinnati Reds, Detroit Tigers, Kansas City Royals, Los Angeles Angels, Miami Marlins, Milwaukee Brewers, Tampa Bay Rays, and St. Louis Cardinals. Yet not all teams may stick around as DAZN wants to cut what they pay, giving teams the option to break their contract, according to the Sports Business Journal.
The situation intensified late in 2025 when MSGS missed a scheduled rights fee payment to the Cardinals in December, highlighting ongoing cash flow challenges. This followed the company’s emergence from a prior bankruptcy restructuring earlier in the year, when it rebranded from Diamond Sports Group and secured a naming rights partnership with FanDuel. Despite these efforts, the traditional regional sports network model continues to struggle amid widespread cord-cutting and declining cable subscriptions.
Industry sources indicate that teams affiliated with MSGS are poised to receive a formal proposal detailing the path forward if DAZN completes its acquisition of the company. This proposal would outline a revised business structure, potentially including adjustments to financial terms. Teams would then confront a significant choice: accept the new arrangement under DAZN or seek independent alternatives for local game distribution.
DAZN appears prepared to request reduced rights fees from teams as part of the transaction. The rationale centers on the belief that these adjusted payouts would remain more attractive than options such as over-the-air broadcasts or integration into MLB’s centralized media framework. DAZN views the deal as a strategic opportunity to establish a substantial presence in the U.S. market, gaining scale through rights to games from three major leagues. This foothold could position the company advantageously for future national rights negotiations, particularly with MLB’s national deals set to expire after the 2028 season.
Even if several teams decline the proposed terms due to lower fees or other reservations, the acquisition could proceed without major disruption. However, a key threshold exists: if more than 10 of the 29 teams opt out, sources suggest the deal could face jeopardy. The NBA’s 13 affiliated teams include the Hawks, Hornets, Cavaliers, Pistons, Pacers, Clippers, Grizzlies, Heat, Bucks, Timberwolves, Thunder, Magic, and Spurs. The NHL’s seven teams are the Hurricanes, Blue Jackets, Red Wings, Kings, Wild, Predators, and Blues.
Should the DAZN transaction fail to close by the end of January 2026, MSGS plans to wind down operations by the conclusion of the 2025–26 NBA and NHL regular seasons. This controlled dissolution would return local rights to the respective teams and leagues, potentially accelerating shifts toward national streaming platforms or independent models. For MLB teams on FanDuel Sports Network, alternatives include self-operated networks similar to the Texas Rangers’ approach or migration to MLB’s centralized production and distribution system, which already serves franchises like the Mariners, Rockies, Diamondbacks, Padres, Twins, and Guardians.
Veteran media executives have noted the difficult position these teams occupy, with alternatives generally viewed as less favorable than the current setup despite the uncertainties. The Cardinals, for instance, have emphasized ongoing collaboration with FanDuel Sports Network, MLB, and other stakeholders to secure distribution options, ensuring games remain accessible via cable and direct-to-consumer streaming in 2026.
The broader context reflects persistent challenges in the RSN sector, where declining subscriber numbers have strained traditional carriage deals. A successful DAZN takeover could stabilize the affected networks by leveraging its digital expertise and global experience, while integrating FanDuel Sports Network’s direct-to-consumer offerings into a larger streaming ecosystem. As January progresses, the outcome will shape local sports viewing for millions of fans and influence the evolving economics of professional team media rights across North America.
This high-stakes scenario underscores the rapid transformation of sports broadcasting, driven by streaming growth and the decline of linear cable dominance. Teams and leagues prepare contingency plans to maintain fan access amid these changes, highlighting the delicate balance between financial viability and broadcast availability in an increasingly digital-first era.
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