Thursday, July 11, 2024

Fans Biggest MLB Issue: Blackouts

MLB Commissioner Rob Manfred

As he approaches his 10th anniversary as MLB commissioner, Rob Manfred has seen baseball through a cheating scandal, a pandemic, a work stoppage, dramatic rule changes and a significant expansion of the playoff field.

There are signs that changes are drawing fans back to watching the game. Attendance this year has been up slightly, about 2% over 2023, according to MLB, and game times continue to fall. The average game time is down more than a half hour from 2021, to 2:36 this season. Baseball also appears to be making inroads with a younger audience, with the average age of ticket buyers dropping from 51 to 44 over the last five years.

There are still, however, significant headwinds to counter, starting with the potentially industry-changing implosion of the regional sports network model for local broadcasting revenues.

Ahead of the All-Star Game in Arlington on Tuesday, Manfred, 65, sat down with The Dallas Morning News for a wide-ranging Q&A on the state of the game and the issues still ahead.

Regional sports networks

Manfred: “I’ve tried to be clear about this. We hope that Diamond [Sports] continues to pay our clubs the amounts they are contractually obligated to pay. That would be a good outcome for us. But, we have been prepared and remain prepared to step in, in the event they reject agreements to make sure that our fans get served both in the traditional broadcast cable arena and on the digital side.”

In the interim, though, is there any potential solution to the blackout situation that is preventing a significant number of fans from watching their own teams locally via streaming options that seem to already be in place?

Manfred: “Blackouts are the No. 1 issue we hear from fans about. It is certainly possible to solve the blackout situation. Unfortunately, the RSN situation has made it even more difficult. The regionals and the distributors have become less interested in distribution, particularly in the outlying areas. It means more people are blacked out. So, that’s a problem.

“Because these [RSN] contracts are generally good deals for the clubs, breaching the exclusivity that’s contained in those contracts is not a particularly appealing option right now because that would give the RSN an opportunity to walk away. So, we’re in a tough spot. I think we will get past that tough spot, though, in relatively short order. And reach will be a priority for the game.”

The potential impact on the game - losing that RSN revenue - seems like an industry-changer. Is it not?

Manfred: “There is potential for a downtick in revenue, but I think that down tick is going to be relatively modest. The content has fundamental value and we will be back at our peak relatively quickly. And from there we continue to grow.”

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