02-25-2023, 07:18 AM
Saw David Cone on the YES Network talking about MLB business issues. He said MLB is moving toward pooled media rights. Apparently, MLB owners are now having these conversations, knowing this is the way to grow the game and franchise values. He specifically called out a shift from basing team revenue on media market size and the RSN model to a collective MLB rights model as streaming services become the rule not the exception.
It seems rather than an RSN, if you want to watch an MLB game, you will go to the streaming service partner, or possibly MLB's own online channel.
If the owners do in fact do this, it will be quite surprising if it doesn't come with a salary cap and floor. The question will be if it is a hard cap like the NFL and NHL, or a soft cap like the NBA. I'd guess the big market teams will accept the pooled rights for a soft cap that allows them to spend over the cap with big financial penalties and inability to add free agents when capped.
I do know this, if a cap and floor is coming that does away with luxury tax payments to teams that refuse to spend (cough, the Oakland A's), franchise values will explode because cost certainty will drive up their value. If this happens, John Fisher may in fact finally sell the A's and someone will keep them in Oakland. Right now, the A's aren't seen as a valuable growth asset, but change the financial dynamics and give them similar money to spend as the Angels and Mariners, and the franchise value will greatly increase. This is what the owners want - franchise values to increase, so it seems it is inevitable these changes will happen.
It seems rather than an RSN, if you want to watch an MLB game, you will go to the streaming service partner, or possibly MLB's own online channel.
If the owners do in fact do this, it will be quite surprising if it doesn't come with a salary cap and floor. The question will be if it is a hard cap like the NFL and NHL, or a soft cap like the NBA. I'd guess the big market teams will accept the pooled rights for a soft cap that allows them to spend over the cap with big financial penalties and inability to add free agents when capped.
I do know this, if a cap and floor is coming that does away with luxury tax payments to teams that refuse to spend (cough, the Oakland A's), franchise values will explode because cost certainty will drive up their value. If this happens, John Fisher may in fact finally sell the A's and someone will keep them in Oakland. Right now, the A's aren't seen as a valuable growth asset, but change the financial dynamics and give them similar money to spend as the Angels and Mariners, and the franchise value will greatly increase. This is what the owners want - franchise values to increase, so it seems it is inevitable these changes will happen.