Photo credit: Sinclair. https://www.nexttv.com/news/sinclair-ballys-rebrand-regional-sports-networks
Regional Sports Networks, or RSNs, were once a financial machine that generated millions of dollars in revenue for individual sports teams and owners.[1] These RSNs allow sports teams to broadcast their games in their given market on cable TV and are usually part of the higher-priced premium packages.[2] Networks Like YES (Yankees), NESN (Boston), and MSG (New York City metro area) would bring fans their favorite teams and commentators, along with other regionally specific programming.[3] However, as consumers start cutting cords, and cable providers try to squeeze these networks financially, many of them are moving to their own streaming platforms or folding completely.[4] The latest domino to fall is MSG, which broadcasts the New York Knicks, New York Rangers, New Jersey Devils, Buffalo Sabres, and New York Islanders. The network is trying to work with lenders to refinance $829 million in debt.[5] That begs the question, how did we get to this point?
Historically, teams in the MLB, the NBA, and the NHL would sell their rights to RSNs, which would then negotiate a deal with large televisions providers such as Comcast or DirecTV.[6] These networks would carry a certain value, and be an enticement for customers to upgrade to the most expensive cable package. The Yankees network, YES, brought in over $143 million in 2023 alone.[7] However, as consumers started to cut the cord and move to streaming, the value proposition for the RSNs became less and less. When these contracts expired, it would sometimes lead to blackouts of the network, and even if a new deal could be reached, the RSNs were usually on the losing end of the bargain.[8] This led to frustration among customers, who finally figured the juice wasn’t worth the squeeze and left their cable providers for streaming subscriptions.[9]
To try and get to their loyal fanbases, teams and RSNs decided to cut out the middlemen and start developing their own straight-to-consumer streaming services.[10] MSG introduced a streaming option in 2023 for $29.99 per month, a result of a carriage dispute with cable provider Altice.[11] But even that might not be enough to save it. If the MSG network discharges its media rights deal as part of a bankruptcy filing, that could cost MSG Sports, its parent company, ~17% of its revenue. The RSNs also have to contend with leagues negotiating media rights deals that may or may not be favorable, including the newly renegotiated media rights deal the NBA signed starting in the 2025-2026 season, one that New York Knicks owner James Dolan criticized publicly.[12]
While RSNs have served their purpose, a combination of advancements in streaming technology and evermore demanding cable distributors has left the writing on the wall for even the largest RSNs as they start consolidating or filing for bankruptcy one by one.[13] With millions of dollars at stake, it will be a challenge for RSNs to navigate this new era of sports consumerism and leave fans wondering what comes next.
[1] https://www.marketplace.org/2024/09/09/rsn-dying-whats-next-for-sports-broadcasting/
[2] Id.
[3] Id.
[4] https://www.cnbc.com/2024/06/04/diamond-sports-bankruptcy-nba-nhl-concerns.html
[5] https://www.cnbc.com/2025/02/14/msg-networks-faces-financial-turmoil-despite-knicks-promising-season.html
[6] See supra note 1.
[7] Id.
[8] Id.
[9] Id.
[10] Id.
[11] See supra note 5.
[12] Id.
[13] See supra note 4.
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