Major League Baseball (MLB) revealed on Tuesday that it will be responsible for producing and distributing local broadcasts for the Cleveland Guardians, Milwaukee Brewers, and Minnesota Twins starting next season. These three franchises had contracts that were with Diamond Sports Group, which lapsed at the conclusion of the recent regular season.
The Texas Rangers, who also ended their agreement with Diamond last month, have also confirmed that they will not continue their partnership with the group and are exploring various options for the upcoming season.
With the inclusion of the Guardians, Brewers, and Twins, MLB will be in charge of broadcast operations for at least six teams heading into 2025. MLB took over for the San Diego Padres and Arizona Diamondbacks during the 2023 season, and now the Colorado Rockies will also be under their purview moving forward.
Rick Schlesinger, the Brewers’ president of business operations, expressed optimism that more teams may opt to collaborate with MLB by the beginning of the next season. “This has been a long process, and a very deliberate one,” he stated. “We’ve put in significant effort and analysis, and I believe this will greatly change the landscape for us in terms of our content.”
By assuming control over these broadcasts, MLB aims to enhance the market penetration of its teams, expecting to increase viewership by at least 2 million households in each team’s respective market. For instance, the Diamondbacks jumped from 930,000 households on their regional sports network to 5.6 million by utilizing a mix of local cable, satellite, and direct-to-consumer streaming options.
Noah Garden, MLB’s deputy commissioner for business and media, highlighted the league’s commitment to improving fan access to games by addressing issues like blackout restrictions. “As the media landscape evolves, Major League Baseball is dedicated to ensuring our fans can enjoy their favorite teams, eliminating blackouts where possible, and ultimately expanding the availability of our games,” he remarked in a statement.
In a recent development, the Minnesota Twins faced backlash for their decision to decrease player payroll for the 2024 season, despite finishing first in their division and achieving their first postseason series victory in over two decades. This decision was attributed to the lowered rights fees associated with the shift to MLB’s broadcast model. Team president Dave St. Peter clarified that this move would not influence player spending in the upcoming season, despite the expected loss of rights fees.
“We have spent considerable time working with Major League Baseball to better comprehend the marketplace and the implications of this new model for our team. We have closely analyzed the changes in San Diego, Arizona, and Colorado, and are comfortable with what we’ve learned,” St. Peter said. “Although we anticipate a decline in local revenue for 2025, we are confident over the long term in our content, and believe viewership—and the associated revenue—will ultimately improve.”
Currently, the Cleveland Guardians’ games are accessible to around 1.45 million households through their regional sports network, but this reach is projected to rise by 235% to approximately 4.86 million homes. Meanwhile, the Twins’ current viewing reach of 1.08 million households is also expected to increase by 307% to 4.4 million.
Schlesinger mentioned that the Brewers had their games available to about 800,000 households last season, but he anticipates substantial growth under the new arrangement. “From a fan’s standpoint, this is fantastic as it will provide complete access without blackout restrictions,” he declared. “There will be a lot of staffing and infrastructure decisions to make, along with reaching out to sponsors. It’s the ideal time to initiate this change.”
MLB may continue to expand its broadcasting portfolio as Diamond Sports Group navigates its ongoing bankruptcy process. The entity, which manages the Bally Sports regional networks, is potentially on track to only broadcast Atlanta Braves games by 2025.
In its recent reorganization plan presented in U.S. Bankruptcy Court in Houston, Diamond intends to void contracts with the Detroit Tigers and Tampa Bay Rays, and renegotiate agreements with the five franchises partially invested in their regional sports networks, which includes the Cincinnati Reds, Kansas City Royals, Los Angeles Angels, Miami Marlins, and St. Louis Cardinals.
St. Peter believes that other teams will follow suit and adopt this new model soon. “It is essential to begin building a direct-to-consumer foundation, as this represents the future of game distribution,” he commented, highlighting the excitement surrounding this new direction. “Our ownership understands the implications, but we believe that the long-term benefits will outweigh any short-term challenges.”
A final hearing regarding Diamond Sports Group’s reorganization plan is set to occur on November 14. Alongside MLB, Diamond holds rights to broadcast to 13 NBA teams and 8 NHL teams as well.
In 2019, Diamond Sports Group and Sinclair Broadcast Group acquired these regional sports networks from The Walt Disney Co. for nearly $10 billion, a move mandated by the Department of Justice as a condition for approving Disney’s acquisition of the entertainment assets from 21st Century Fox.