Before Clemson/FSU and a bunch of others stroke - at a minimum - $120-$300 million checks to get out of the ACC they need to be paying close attention to what is happening with MLB and Diamond Sports.
The tensions are boiling over about how the teams are counting on the money from the RSNs ($60 million a year for the Padres) but the money just isn't there. Since Diamond Sports owns the rights to the games they are haggling over what is owed and who will own the rights going forward. It's an ugly, ugly process as they are all coming to the realization that the money that has been promised to the teams simply isn't there given the situation with cord-cutting.
We aren't there yet with ESPN, but a lot of the problems facing Diamond Sports are the same ones facing ESPN. We could see a similar situation play out in the coming years.
However, looking way, way, way ahead - one interesting dynamic that is now playing out is how Diamond Sports WANTS to keep the rights to certain franchises and is willing to uphold those contracts (Rangers). Appears those are the "valuable" franchises. MLB says pay us ALL what we are owed or we all should be able to walk. They don't want Diamond to have rights to some teams but not others. It makes it hard for MLB to sell a direct to consumer package if the rights are broken up a million different ways.
Applying this to college football/conferences -- this could be a way to kick out certain members in the years to come. Say ESPN went bankrupt in 7 years. They go to bankruptcy court. They agree to pay Bama 100% of what they are promised so they can retain their rights. They do that for teams like A&M, Texas, Oklahoma, Florida, Georgia, Auburn, Tennessee, and LSU. In turn, they agree to terminate and completely relinquish 100% of the rights to Ole Miss, Miss State, Chickens, and Vandy. What happens to the SEC as a conference then? Do the other teams blow up the whole league because those teams aren't getting paid? Or does Bama say as long as I'm getting 100% what I'm owed, I'm good. Anyway, interesting to think about.
What happens here will have an impact on CFB in the future.
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The tensions are boiling over about how the teams are counting on the money from the RSNs ($60 million a year for the Padres) but the money just isn't there. Since Diamond Sports owns the rights to the games they are haggling over what is owed and who will own the rights going forward. It's an ugly, ugly process as they are all coming to the realization that the money that has been promised to the teams simply isn't there given the situation with cord-cutting.
We aren't there yet with ESPN, but a lot of the problems facing Diamond Sports are the same ones facing ESPN. We could see a similar situation play out in the coming years.
However, looking way, way, way ahead - one interesting dynamic that is now playing out is how Diamond Sports WANTS to keep the rights to certain franchises and is willing to uphold those contracts (Rangers). Appears those are the "valuable" franchises. MLB says pay us ALL what we are owed or we all should be able to walk. They don't want Diamond to have rights to some teams but not others. It makes it hard for MLB to sell a direct to consumer package if the rights are broken up a million different ways.
Applying this to college football/conferences -- this could be a way to kick out certain members in the years to come. Say ESPN went bankrupt in 7 years. They go to bankruptcy court. They agree to pay Bama 100% of what they are promised so they can retain their rights. They do that for teams like A&M, Texas, Oklahoma, Florida, Georgia, Auburn, Tennessee, and LSU. In turn, they agree to terminate and completely relinquish 100% of the rights to Ole Miss, Miss State, Chickens, and Vandy. What happens to the SEC as a conference then? Do the other teams blow up the whole league because those teams aren't getting paid? Or does Bama say as long as I'm getting 100% what I'm owed, I'm good. Anyway, interesting to think about.
What happens here will have an impact on CFB in the future.
MLB's Rob Manfred Says Sinclair Exec Threatened Bankruptcy
MLB Commissioner Rob Manfred testified about the rift between the league and Sinclair, the parent company of bankrupt Diamond Sports Group.
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