In 2028, MLB commissioner Rob Manfred aims to reorganize the league’s local media rights deals. His vision is to consolidate several MLB clubs to sell a package of local media rights to a tech giant like Amazon or Google. This proposed framework intends to eliminate blackouts, simplify the fan experience, and create a one-stop-shop for local MLB broadcasts, thus removing the necessity for a pay TV subscription.
For small and medium-market teams, this arrangement seems advantageous, promising greater revenue from a nationalized local rights deal compared to dwindling payments from regional sports networks, which have already reduced local rights fees to remain afloat. However, for large-market teams like the Los Angeles Dodgers and New York Yankees, aligning with Manfred’s vision poses challenges, as they currently enjoy lucrative local rights deals and would require considerable financial incentives to abandon them. A nationalized rights package loses appeal if it excludes MLB’s most popular franchises.
Encouragingly, John Ourand from Puck reports that at least one big-market team is receptive to the plan. San Francisco Giants CEO Larry Baer told Ourand that the Giants are “very open” to integrating their local rights with other teams to offer a comprehensive package to a national streaming service. Additionally, he noted that “most teams are very open” to the concept, which bodes well for Manfred as he works to align teams with his strategy.
The Giants hold about one-third ownership of their regional sports network, NBC Sports Bay Area, which has recently started streaming its games on Peacock. While there are still a few years until Manfred needs firm commitments from teams, securing support from clubs like the Giants will enhance the overall value of the league’s local media rights package.
