The pandemic has been a long haul through the mud for regional sports networks, particularly the ones owned by Sinclair Broadcast Group. Sportico has reported the company owes $1.82 billion in 2021 media rights fees.
Demand for at-home TV viewing has dropped, with 66.9% of households subscribing to a traditional TV package in the first quarter of 2021. According to Nielsen, that is a fall from the 83.9% of households with packages five years ago.
Sinclair owns Bally Sports which is the RSN for a litany of major sports teams across the United States. Battles with different entertainment platforms have left Bally Sports off the Dish Network, YouTube TV, and Hulu channel guides. Just over 11 million Americans were unable to watch Sinclair RSNs on Opening Day.
“I used to say that the RSN model is good for five to 10 years, but I have to modify that,” a sports network programming chief said to Sportico. “COVID will have a more lasting impact on sports than perhaps we’d anticipated. The RSNs are not in a great spot right now—along with the battle with distributors, the advertisers are not clamoring back.”
Sinclair rebranded the RSNs from “Fox Sports” channels to “Bally Sports” after the gaming company agreed to an $85 million rebranding deal. Agreements like this one have popped up across the industy as the groundswell for sports betting in America grows. The marriage of sports gambling and RSNs is crucial for the platform’s survival.
“The impact of the last 14 months has been profound, but let’s face it, the next six to 12 months may be too much to come back from,” the network executive told Sportico. “Gambling can’t happen soon enough.”
The platform is in limbo, but fledgling sports franchises are still banking on RSNs. The Seattle Kraken recently signed a five-year, $150 million deal with Root Sports in January.