Cubs Fight Against Major Broadcast Change

IMAGE: Baseball commissioner Rob Manfred announces Major League Baseball and the Chicago Cubs will host the 2027 All Star game at Wrigley Field. / David Banks / Imagn Images

Commissioner Rob Manfred has a vision for Major League Baseball’s future, and it involves reshaping how TV rights are managed. By 2028, he aims to have all 30 MLB teams’ local TV rights bundled with national rights, hoping this strategy will fetch a higher price when sold to prospective buyers.

With the current national TV deals expiring after 2028, Manfred’s goal is to consolidate as many local rights as possible. However, not all teams are on board.

The Chicago Cubs, for instance, value their independence. Cubs chairman Tom Ricketts expressed this sentiment at their Arizona camp, and it’s a stance likely shared by other heavyweights like the Dodgers, Yankees, Mets, and Red Sox.

These teams own their Regional Sports Networks (RSNs) and are still reaping substantial profits from local TV rights.

The league’s constitution, submitted in a 2023 court case, requires a majority owner vote for any league action on video media rights. A more significant hurdle is the three-quarters vote needed for changes affecting revenue sharing. This means 23 of the 30 owners must agree to any shift in how local rights are managed, and it’s anticipated that at least eight owners might resist such a move.

Currently, MLB handles production and distribution for 14 teams, including the Diamondbacks, Padres, and Guardians. These rights largely came under MLB’s control following the collapse of Main Street Sports Group. The Angels might soon join this group as they decide their broadcasting future.

Manfred’s push for centralizing local rights stems from a desire to distribute TV revenue more evenly among teams. While national game revenues are shared equally, local TV money is not. If national deals can generate substantial new income, big-market teams might be more inclined to support Manfred’s plan, especially if it aligns with efforts to introduce a salary cap during player negotiations.

The salary cap discussion is a recurring theme, tied to the league’s broader financial strategies. Implementing a cap would require a floor and guaranteed revenue sharing with players, alongside transparency from owners.

For fans, the number of national packages sold by MLB post-2029 is crucial. Manfred is keen to end blackouts and create a more fan-friendly experience, acknowledging the frustration of having to subscribe to multiple services to watch games.

Currently, MLB’s constitution limits teams to 17 or 18 exclusive national games per season across various networks. Last year, the Cubs had games spread across Fox-TV, ESPN, Apple TV, and Roku.

This year, NBC joins the mix, with some games exclusive to Peacock, adding another layer to the viewing experience.

In sum, Manfred’s vision is ambitious, aiming to streamline TV rights and enhance fan accessibility, but it faces significant hurdles from team owners and the complexities of existing broadcasting agreements.

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