Warner Bros. Discovery Will Be Done with Regional Sports Networks by Year’s End
Warner Bros. Discovery Will Be Done with Regional Sports Networks by Year’s End
Warner Bros. Discovery is ready to take its ball and go home. Company CEO David Zaslav signaled as much on Thursday during a conference call with market analysts to discuss WBD’s second-quarter earnings report, saying he expected to be done with the company’s AT&T SportsNet-branded regional sports networks (RSNs) by year’s end.
“I am very pleased to say that we have been working diligently with the respective leagues and teams to formulate a plan to exit the RSN business in a manner that minimizes the disruption to teams and their fans,” Zaslav said. “We expect each of the networks will be sold or operation ceased by the end of the year.”
The first indication that WBD was getting out of the RSN business came in February of this year when the company informed the teams covered by [AT&T SportsNet Pittsburgh], [AT&T SportsNet Rocky Mountain], [AT&T SportsNet Southwest], and Root Sports Northwest that it wanted to sell their rights back to them.
| DIRECTV | Fubo | Hulu | Philo | Sling TV | YouTube TV | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Free Trial | Free Trial | Free 3-Day Trial | Free Trial | Save with Sling | Free Trial | |||||
| $20.99 | $9.99 | $28.99 | $25 | $19.99 | $29.99 | $45.99 | $45.99 | $64.99 | ||
| Root Sports Northwest | + $44 | + $59 | - | - | - | - | - | - | - | |
If deals had not been reached, the channels would have gone into Chapter 7 liquidation proceedings. But since there’s been no word that any such proceedings have begun, and in light of Zaslav’s timeline that WBD will be out of the RSN business by the end of 2023, it seems reasonable to assume that the four MLB teams (Astros, Mariners, Pirates, Rockies), three NBA teams (Blazers, Jazz, Rockets), and three NHL teams (Kraken, Penguins, Golden Knights) formerly covered by these channels have all made satisfactory arrangements with their broadcast rights.
Indeed, two of these teams have already decided to leave cable behind in favor of local broadcast channels. The Vegas Golden Knights will be available on a Scripps-owned channel locally, and the Utah Jazz will be broadcast on Sinclair's KJZZ in every corner of the state this upcoming season.
In March, it was also reported that the Houston Rockets and Astros were looking to potentially take over operations of AT&T SportsNet Southwest. The Seattle Mariners own 60% of Root Sports Northwest, so the disruption caused by WBD’s exit in that case has been minimal.
It’s a possibility that some teams are allowing the channels they’re associated with to hold onto their broadcast rights until they know what will happen to the networks themselves. Zaslav’s words indicate they’re up for sale, and if they are sold it will be an easier process for the teams involved to stay with their AT&T SportsNet channel than it would be to go out and seek a new broadcasting partner.
Exiting the RSN business doesn’t mean WBD is stepping back from live sports, far from it. The company still has a large portfolio of MLB, NBA, and NHL broadcasting rights, which are now reserved for its cable channels TBS, TNT, and truTV. Zaslav teased more live sports coming to the company's streaming platform Max at some point in the near future as well during the earnings conference call, promising he’d reveal more about the company’s plans in that arena “soon.”
WBD has many other, more profitable segments of its business to carry forward with as it leaves RSNs behind. That’s not the case at all for Diamond Sports Group (DSG), which is still in the midst of bankruptcy court proceedings as it tries to keep its Bally Sports RSNs going. Two MLB teams (the San Diego Padres and Arizona Diamondbacks) and both of Arizona’s pro basketball teams (Phoenix Suns and Phoenix Mercury) have broken free of their Bally Sports channels, but DSG has fought every step of the way to keep the rights to the other teams it owns.
The future of live sports on WBD is with its Turner Networks and with Max, which opens up some intriguing possibilities. But it might be the last gasp for AT&T SportsNet RSNs, which could disappear for good if they don’t find partners willing to buy them before year’s end.
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