MLB's Changing RSN Model To Impact Talks With Players Union

The accelerating collapse of Major League Baseball's regional sports network (RSN) model is delivering major short-term revenue losses for many teams, often in the tens of millions of dollars, and will heavily influence upcoming labor negotiations between MLB and the Players Association.

All nine MLB clubs previously partnered with FanDuel Sports Network (operated by cash-strapped Main Street Sports Group) have terminated their deals amid missed rights payments and the company's financial distress. Eight teams, the Milwaukee Brewers, Miami Marlins, Kansas City Royals, St. Louis Cardinals, Cincinnati Reds, Tampa Bay Rays, Detroit Tigers, and Los Angeles Angels have shifted to MLB's in-house media operation, which handles local game production and distribution (often via streaming on the MLB app, with some local cable arrangements).

 

The Atlanta Braves are pursuing their own independent local media network, modeled after the Texas Rangers' approach.

This shift has caused significant immediate revenue hits for the affected clubs, with smaller-market teams bearing the brunt due to reduced leverage in new deals compared to larger markets. MLB Commissioner Rob Manfred acknowledged the drag: “The RSN situation has an impact on our revenue growth because the decline there is... a drag on what is otherwise a growing industry,” he said, while noting positives like rising attendance and national viewership. He added that smaller markets are hit harder, affecting revenue-sharing dynamics.

Despite the short-term pain, Manfred has expressed long-term confidence in MLB's content value, citing strong engagement and eyeballs. He highlighted the major opportunity after 2028, when key national media-rights contracts expire: MLB plans to negotiate blended national and local rights packages—potentially centralizing more control, reducing blackouts, and partnering with streaming platforms to maximize overall value.

The RSN disruption accelerates MLB's transition to a more centralized, digital-first model, creating uncertainty for fans and broadcasters in the interim but positioning the league for a potentially more stable and lucrative media future post-2028. The revenue pressures will likely play a key role in collective bargaining agreement talks, as the current deal expires after the 2026 season.