In the wake of Diamond Sports Group filing for Chapter 11 Bankruptcy, opportunities have arisen as regional sports networks (RSNs) across the country have taken a hit. At a time when there are so many moving pieces in the world of sports streaming, ESPN is looking to expand its reach in the local sports market.
According to the Wall Street Journal, ESPN is discussing the possibility of acquiring local rights, amidst a search for a strategic partner.
Per the WSJ, ESPN has already held preliminary discussions with Major League Baseball regarding the Worldwide Leader streaming local baseball games in certain markets. RSN owner Diamond Sports Group, the Sinclair-affiliated parent company behind Bally Sports, recently chose to skip payments to a handful of MLB team broadcasts, which has led to the league taking over the broadcast rights of multiple teams, or those rights reverting to the teams themselves. Now it appears that MLB may want to partner with ESPN on this.
Here’s more from the WSJ article, penned by Jessica Toonkel and Isabel Simonetti:
Talks with potential partners and investors have touched on several roles ESPN can play in the fragmented streaming industry, from carrying local broadcasts for pro sports teams to serving as an industrywide hub to stream any live game, people familiar with the discussions say.
On another track, ESPN is working to make a stand-alone version of its flagship TV channel available to cord-cutters in two to three years, or once its reach in the cable-TV world falls below 50 million households, people familiar with the plans say.
Major League Baseball has had early talks with ESPN about having the network stream local baseball games in certain markets, people familiar with the matter said. The bankruptcy of the largest local sports TV player, Diamond Sports Group, has led the league to explore new options for delivering games to consumers.
Beyond that, ESPN is exploring the potential for additional partnerships with other professional sports leagues. According to the Wall Street Journal, ESPN has had open discussions with the NBA, NFL, and NHL about potential strategic partnerships. These discussions have included the possibility of the leagues acquiring a stake in ESPN.
The ongoing discounts that ESPN has been offering to the leagues are part of these larger talks. The WSJ report states that these discussions have “intersected” with ESPN’s discussions with the NBA about renewing their media partnership
ESPN is laying out its plans to expand into local broadcasting. However, the details of how this will happen, such as whether ESPN will partner with any of the four major professional sports leagues, are still unclear. In the meantime, ESPN is keeping its options open. The uncertainty surrounding the future of the traditional regional sports network model seems to be working in ESPN’s favor, as it certainly gives the network more to gain.
[Wall Street Journal via Sports Media Watch]
