MLB commissioner Rob Manfred intends to restructure the league’s local media rights deals in 2028.
Manfred’s goal is to bring together enough MLB clubs to sell a package of local media rights to a technology company such as Amazon or Google.
The proposed system would, in theory, eliminate blackouts and simplify the fan experience by providing a one-stop shop for local MLB broadcasts and eliminating the need for a pay TV subscription.
For small and medium-sized teams, the arrangement is obvious. These teams are likely to receive higher fees from a nationalized local rights deal than from declining regional sports networks, many of which have already reduced local rights payments in order to remain profitable.
However, large-market teams face a much more difficult decision to align with Manfred’s grand plan. Teams with highly lucrative local rights deals, such as the Los Angeles Dodgers and New York Yankees, would most likely require financial incentives to abandon their current arrangements in order to participate in a nationalized local rights agreement. Of course, a bundle of local rights is only so appealing if it lacks MLB’s most popular franchises.
According to Puck’s John Ourand, at least one big-market team appears to support MLB’s local media rights plan. Last week, San Francisco Giants CEO Larry Baer told Ourand that the team is “very open” to bundling its local rights with other franchises for sale to a national streaming service. Baer added that “most teams are very open” to the concept as well.
That’s a good sign for Manfred, who will have a tough time convincing teams like the Giants to get on board.
The Giants own roughly one-third of the regional sports network NBC Sports Bay Area, which has recently begun streaming its games on Peacock.
There are still a few years until Manfred needs firm commitments from teams, but the more ball clubs, such as the Giants, he can bring on board, the more valuable the league’s local media rights package will be.
