Major League Baseball commissioner Rob Manfred is eyeing an opportunity to expand the sport’s accessibility nationwide as the league continues to grapple with challenges stemming from regional sports networks. Speaking at the CNBC x Boardroom’s Game Plan Summit, Manfred addressed the possibility of making MLB “more national” in the future, potentially overcoming the long-standing issue of blackout restrictions.
“You know, we made a set of changes in our rules last year that I think dramatically improved the product on the field. Pitch clock, moved the game along, took out a lot of our dead time, put an emphasis on athleticism that was really important…I think as we move forward and as the landscape continues to change, we have an opportunity to make our sport more national, increase our reach, deal with the blackout issue that has plagued us for years and I think as with every crisis, there’s an opportunity to make your business better.” Manfred said at the CNBC event.
The current model, where local broadcast rights are sold to regional sports networks, has led to blackout restrictions that prevent fans in certain areas from watching their local teams’ games. This setup is intended to encourage fans to attend games in person and incentivize cable or satellite providers to carry the regional networks.
However, the financial turmoil of Diamond Sports Group, the parent company of Bally Sports, has thrown a wrench into the system. DSG, which holds regional deals with numerous MLB, NBA, and NHL teams, filed for bankruptcy in March 2023. While recent deals with the NHL and NBA have secured broadcasts for the 2024-25 season, MLB’s future with DSG remains uncertain.
Adding to the complexity, Amazon recently withdrew a $115 million offer to partner with Diamond Sports Group, which would have granted Prime Video access to all MLB, NHL, and NBA teams under Diamond’s umbrella. This move leaves MLB teams with DSG in a precarious position, as they get ready for the 2025 season.
The situation has prompted MLB to consider “more drastic” legal remedies, as team owners struggle to plan their 2025 budgets without knowing how much television revenue to expect. The uncertainty surrounding DSG’s bankruptcy and the potential for teams to regain their in-market digital rights have fueled discussions about alternative models for broadcasting games.
Manfred’s statement suggests that MLB is exploring ways to navigate the complexities of the regional sports network landscape and increase the sport’s national reach. This could involve new streaming deals, revised broadcasting models, or even a combination of both. As the streaming industry continues to grow and the traditional cable TV model faces challenges, MLB is looking for opportunities to evolve and make its games more accessible to fans across the country.