MLB faces uphill climb to secure local rights for all teams by 2028
MLB faces uphill climb to secure local rights for all teams by 2028
The league will have to convince intransigent owners to go along with a scheme that might see their revenues cut in the short term.
MLB is fast approaching a crossroads with its TV and streaming rights. The broadcast rights to national MLB games are currently set to expire in 2028, and the league wants to get all of its rights back under its control by then, in order to gain maximum negotiating leverage. That includes its local broadcast rights; the majority of each MLB team’s yearly schedule is played out on local channels as opposed to national networks, and MLB commissioner Rob Manfred wants those rights under MLB control by 2028 as well. But there’s clearly a long climb to get there for the league, which will face stiff resistance from some owners.
Key Details:
- He’s pretty sure: Manfred’s recent comments suggest he sees the unification of all local MLB rights by 2028 as a distinct possibility.
- Intransigent owners: Owners who make a large amount from their local rights won’t be too keen to give up that revenue.
- Replacing revenue: MLB will have to show teams it can replace the revenue from TV rights in any such scheme.
MLB commissioner Rob Manfred has had his eye on the unification of MLB local broadcasting rights under the league’s tent for quite some time. He spoke about the possibility again at the Front Office Sports Tuned In conference last Tuesday, saying that if he had to make a prediction, “[the league will] have the availability of all 30 clubs” by 2028, when other league media deals expire. Pulling all of those rights back could allow MLB to sell them blackout-free, which would be revolutionary for fans of the league.
The desire for Manfred to bring together all MLB local rights faces the same challenge it always did: getting buy-in from member clubs. Some MLB teams have ownership stakes in the regional sports networks and make huge amounts every year from local broadcasts; the Los Angeles Dodgers, for example, earn $280 million per year from local TV rights, and some clubs have deals for their rights that extend into the 2030s.
MLB might have to buy out those networks in order to create an arrangement that shares revenue more evenly, but still gets the approval of all clubs. Manfred alluded to the delicacy of such a balancing act when asked how he would satisfy the demands of all owners.
“The best I can do for you on that right now is to say we’re not going to centralize local media as a stand-alone deal,” he said. “There will have to be other gives and takes that make sense for all the clubs.”
One owner told USA Today in the wake of Manfred’s comments that they don’t see his dream becoming a reality any time soon.
“I don’t see it happening,” the owner said, “but I will say that for those of us who have lucrative long-term deals, there’s no way we’re going to see all of that money in today’s landscape. It’s going to be interesting.”
Teams will need to see the revenue they earn from local rights replaced in order to even entertain the prospect of joining a nationalized MLB package, and Manfred will have a major challenge on his hands in getting one outlet to pay a sum large enough for those local rights to satisfy the hopes of all 30 MLB teams. One way to boost that revenue would be to add a salary cap combined with revenue sharing.
But would big-market teams be eager to give up the competitive advantage that comes with the ability to spend more than other teams on top players? That’s another fight, and any changes to revenue sharing have to be collectively bargained as well. It could tie into the collective bargaining negotiations the league will conduct with its players’ union ahead of the 2026 season, after which the current CBA expires.
ESPN may be getting its hands on some local MLB rights, and Manfred could be watching that experiment closely if it leads to good viewership for the teams that appear poised to be sent ESPN’s way. Having favorable ratings could help Manfred sell the idea of a nationalized arrangement for MLB’s local rights to its member clubs, but the commissioner still faces a large challenge to realize that dream by 2028.
MLB.TV
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