MLB’s Regional Sports Network Crisis: A League on the Brink of Transformation
The financial woes of Main Street Sports Group (MSSG), operator of the FanDuel Sports Network, are sending tremors through Major League Baseball. With roughly a third of MLB teams potentially facing reduced revenue or a complete broadcast overhaul, the offseason has taken a decidedly anxious turn. This isn’t just about one company; it’s a symptom of a much larger disruption reshaping how fans consume live sports.
The Cord-Cutting Catastrophe and the RSN Model’s Demise
For decades, Regional Sports Networks (RSNs) were the lifeblood of local baseball coverage. They offered a guaranteed revenue stream for teams, funded by cable and satellite subscriptions. However, the rise of streaming services and the accelerating trend of cord-cutting have decimated that model. As more viewers ditch traditional TV, RSNs are struggling to maintain subscriber numbers, and consequently, their ability to pay rights fees. MSSG’s reported $200 million loss in 2025 is a stark illustration of this reality.
This isn’t isolated to baseball. MSSG’s troubles extend to the NBA and NHL, highlighting a systemic problem across the sports landscape. The recent missed payments to the St. Louis Cardinals are a clear warning sign, forcing teams to confront the possibility of significantly reduced income.
MLB Steps In: A League-Run Broadcast Future?
As RSNs falter, MLB is increasingly positioning itself as a broadcaster of last resort. The league already manages broadcasts for teams like the San Diego Padres, Arizona Diamondbacks, Cleveland Guardians, and Colorado Rockies. This number is expected to grow, potentially including the Washington Nationals, as more teams seek alternatives to struggling RSNs.
This shift represents a fundamental change in the relationship between MLB and its teams. Instead of receiving a fixed fee from an RSN, teams relying on MLB-managed broadcasts will receive revenue based on actual viewership and streaming subscriptions. While this offers potential upside, it also introduces uncertainty.
Did you know? MLB’s foray into direct broadcasting began in 2023 after Diamond Sports Group (MSSG’s predecessor) dropped the Padres and Diamondbacks mid-season.
The DAZN Factor and the Search for a Savior
MSSG is reportedly in talks to sell a majority stake to DAZN, a global streaming service. However, the financial terms of any potential deal remain uncertain. A sale could provide a temporary reprieve, but it’s unlikely to fully resolve the underlying issues plaguing the RSN model. DAZN’s primary strength lies outside the U.S., raising questions about its ability to effectively market and distribute local MLB broadcasts within the American market.
The Impact on Team Budgets and Free Agency
The uncertainty surrounding TV revenue is already impacting team decision-making. As one anonymous MLB general manager stated, “You don’t know what your income is… It does make a difference.” Teams are forced to weigh potential revenue shortfalls when evaluating free agent signings and overall roster construction. This could lead to a more conservative offseason, with teams hesitant to commit to long-term, high-priced contracts.
Pro Tip: Teams are likely to prioritize financial flexibility and explore shorter-term contracts to mitigate the risk of overspending in an uncertain revenue environment.
The 2024 Stopgap and the Need for a Long-Term Solution
In 2024, MLB implemented a “media disruption distribution” – using funds from the luxury tax to offset revenue losses for affected teams. However, this was a one-time fix. Commissioner Rob Manfred recognized the need for a more sustainable solution, acknowledging that the current situation is now widespread. Repeating the 2024 model would be politically challenging, as it involved redistributing funds from some teams to others.
The Future of Local Sports Broadcasting: Streaming is King
The long-term solution likely lies in direct-to-consumer streaming. MLB’s deal with ESPN, which will eventually see local broadcasts integrated into ESPN+, is a step in the right direction. However, it won’t fully materialize until 2027. In the meantime, MLB will continue to experiment with different distribution models, potentially offering standalone streaming packages for local games.
The traditional RSN model is unsustainable. The future of local sports broadcasting is digital, and MLB is actively working to build that future, albeit with significant challenges along the way. The “math doesn’t work anymore” in the traditional model, as one industry observer put it.
FAQ
Q: What is an RSN?
A: A Regional Sports Network is a channel that broadcasts local sports teams to viewers within a specific geographic area.
Q: Why are RSNs failing?
A: Cord-cutting (people canceling cable and satellite subscriptions) and the rise of streaming services have significantly reduced RSN viewership and revenue.
Q: What will happen to teams currently on MSSG?
A: Teams could receive less money, switch to a new broadcast partner (potentially MLB itself), or a combination of both.
Q: Will MLB broadcasts be available on ESPN+?
A: Eventually, yes. MLB has a deal with ESPN to integrate local broadcasts into ESPN+, but this won’t happen until 2027.
Further Reading
The Athletic: Inside the FanDuel Sports Network Sale Talks
Sports Business Journal: Main Street Misses January Payments to NBA Teams
What are your thoughts on the future of MLB broadcasting? Share your opinions in the comments below!
