As some teams succumb to the realities of declining media rights revenue, the Atlanta Braves have beaten the odds.
According to a report by Anthony Crupi in Sportico, the Atlanta Braves’ television revenue increased 2% year-over-year. The team generated $71 million from its television broadcasts this season, compared to $69.3 million last season.
Notably, the Braves are one of two franchises so far—along with the Miami Marlins—that will continue their media rights agreement with Diamond Sports Group’s newly named FanDuel Sports Network regional sports networks into next year.
That is unless Major League Baseball has something to say about it. Thursday is the deadline for the league to file an objection to the Braves’ deal with Diamond, and Crupi reports that the league has indicated it will exercise that option.
Of course, this creates a lot of uncertainty for the Braves. The league estimates that local television rights make up an average of 21% of a franchise’s annual revenue. That has major implications on how a front office cooperates with a team from a player personnel standpoint.
Many NBA and NHL franchises, including some previously inked to deals with Diamond, have opted to take a two-pronged approach to their local rights by ditching RSNs in favor of a combo over-the-air broadcast and streaming strategy. Some MLB teams have allowed the league to take control of their local rights. While these arrangements vastly increase a team’s reach, it is not nearly as lucrative as what the RSNs can offer, even in their diminished state.
Braves president and CEO Derek Schiller told investors during a conference call on Wednesday, “We’re going to be prepared for any eventual outcome. No matter what happens, we think we’re in a very enviable position.”
That may well be true. Schiller noted during the call that around 35 million people live within the franchise’s defined territory, an extraordinary number compared to other teams. Given the built-in market, the Braves may have more attractive options than other franchises that have faced losing their RSN deals.
It wasn’t too long ago that TBS aired 70 Braves games per year nationally. Though that deal ended in 2007, it has contributed to the team’s fan base’s nationwide nature ever since. As such, should MLB successfully block the Braves’ deal with Diamond, other suitors may emerge for the franchise’s local rights.
Suffice it to say that the Atlanta Braves are in a more enviable position than most of their MLB counterparts. Their local media rights story will be one to watch as the offseason progresses.
[Sportico]
