The David Zaslav Cost-Cutting Tour continues. Sports Business Journal reports Warner Bros. Discovery will abandon its RSN business within the next several weeks. This move will affect SportsNet Pittsburgh, AT&T SportsNet Rocky Mountain, AT&T SportsNet Southwest, and Root Sports Northwest.

Those channels cover four MLB teams (Astros, Mariners, Pirates, Rockies), three NBA teams (Blazers, Jazz, Rockets), and three NHL teams (Kraken, Penguins, Golden Knights).

Right now, only two live streaming services carry those channels: DIRECTV STREAM and fuboTV.

What Happens to Those Channels Now?

SBJ reports Warner Bros. Discovery told teams that they have until March 31 to reach an agreement to take their rights back. If the RSNs can’t reach deals with the teams, the channels eventually plan to move forward with a Chapter 7 liquidation filing. Any impact may not be as severe for Root Sports Northwest, since WBD only owns a 40% stake in the channel - the Mariners own the other 60%.

In theory, the channels could continue to operate without much disruption to fans, so long as the new owners (the teams, the leagues, or some other media company) continue footing the bill.

What Is Going On With RSNs Right Now?

Regional Sports Networks have become something of an albatross for the companies that own them. A direct-to-consumer package would require hefty subscription fees to offset the ridiculous costs required for the sports rights.

Those channels often work best as part of bloated cable packages, where all subscribers have to subsidize them, whether they watch them or not. Slimmer live TV streaming packages often ignore RSNs or keep them relegated to significantly more expensive tiers. Many fuboTV subscribers are experiencing sticker shock after the service scooped up the Bally Sports Networks and began charging all subscribers a regional sports fee.

Bally doesn’t have the finances to take over these WBD channels - its parent company is hurtling toward bankruptcy.

WBD became the owner of the four stations in question when Discovery acquired AT&T's Warner Media in April 2022.

The NBA’s national broadcasting rights are due for a renewal after the 2024-25 season, and it’s estimated that the final price tag will be around $75 billion for the next deal. If WBD wants to keep the NBA on TNT, it’s going to need to consolidate its war chest. Other companies like Comcast (NBC, Peacock) or Apple (Apple TV) are said to be eager to snatch the package away. Disney could try to steal more games for ESPN and ESPN+. When it comes to sports leagues, the finances of a national broadcast are usually more beneficial than a regional one.