Report: Houston Astros, Rockets Look to Take Over AT&T SportsNet Southwest as Warner Bros. Discovery Abandons RSNs

With all the whirlwind court proceedings surrounding Diamond Sports Group and its Bally Sports regional sports networks (RSNs) currently, it can be easy to forget that a second company is undergoing significant changes with its RSNs.

That second company is Warner Bros. Discovery, which owns majority or minority stakes in AT&T SportsNet Pittsburgh, AT&T SportsNet Rocky Mountain, AT&T SportsNet Southwest, and Root Sports Northwest, at least for now. WBD has informed the teams covered by these RSNs that it is getting out of the business, and that they have until March 31 to reclaim their rights, or the company will liquidate them along with the rest of the RSNs assets in Chapter 7 bankruptcy.

Two of the teams covered by AT&T SportsNet Southwest have decided not to wait until then, and are taking matters into their own hands, according to John Ourand of Sports Business Journal. The MLB’s Houston Astros and NBA’s Houston Rockets are already in negotiations to take over the operation of AT&T SportsNet Southwest to continue broadcasting their games on the network. That channel currently has long-term distribution deals with Comcast, DIRECTV, DIRECTV STREAM, and U-Verse with around 10 years still left on them, meaning its most secure revenue stream is locked in for the next decade.

Colorado Rockies and Pittsburgh Pirates fans have less reason for current optimism. MLB is currently in negotiations with pay-TV providers to carry the teams’ games, but it is far apart with Charter, Comcast and DIRECTV with two weeks to go before Opening Day. Insiders note, however, that two weeks is an eternity in these types of negotiations, so the situation could change rapidly. Seattle Mariners fans can breathe a sigh of relief, as the team owns the majority stake in Root Sports Northwest, meaning WBD’s exit won’t have an effect on the broadcasting of games.

MLB has a lot of plates spinning these days when it comes to the evolving situation of its teams’ broadcast rights. It recently reclaimed the rights of four teams —the Arizona Diamondbacks, Cincinnati Reds, Cleveland Guardians, and San Diego Padres— from Diamond Sports after that company rejected its contracts with the clubs in bankruptcy court. It has now decided to stream those teams’ games for free until it can iron out a distribution deal with cable and satellite providers, so perhaps it will do likewise with Pirates and Rockies games to start the season.

The collapse of the RSN ecosystem is affecting MLB the most currently, other sports leagues will soon start to feel the effects. Different solutions to the crisis will continue to arise as leagues and TV distributors try to figure out what’s next, and it appears the Astros and Rockets are ready to try their hand at broadcasting as well as playing their respective sports.