The RSN crisis grows deeper as Warner Bros. Discovery gets set to shed its AT&T-branded RSNs. Plus: the latest on Pac-12 media rights and LIV Golf’s deal with The CW.
WBD to divest AT&T RSNs; teams have until 3/31 to take back rights
Warner Bros. Discovery plans to divest its AT&T-branded regional sports networks in the coming weeks and has given its team partners a deadline of March 31 by which to take back their broadcasting rights, according to internal communications obtained by Sports Business Journal and the Wall Street Journal. Should WBD be unable to offload the RSNs and their rights by that date, it would put the networks into Chapter 7 bankruptcy proceedings.
When AT&T was still the majority owner of what-was-then WarnerMedia, it put the same RSNs on the market and received bids that were less than half of the asking price.
The imminent dissolution of the AT&T networks is just the latest crisis facing the RSN industry. Diamond Sports, the Sinclair Broadcasting subsidiary that runs the Bally Sports networks, is expected to soon enter Chapter 11 bankruptcy after recently missing a nine-figure interest payment on its $8 billion in debt. (SBJ 2.24, WSJ 2.24)
Scripps/ION interest in Pac-12 rights reported, denied
After Brett McMurphy of The Action Network reported that Scripps-owned ION — the broadcast ‘netlet’ formerly known as PAX — had emerged as a “potential” suitor for Pac-12 media rights, Stewart Mandel of The Athletic countered that the channel is not involved in the negotiations. Scripps announced late last year that it had formed a sports division and planned to bid on local and national media rights.
Scripps currently owns rights to the National Spelling Bee, once an annual ESPN tradition. ION/PAX has limited history carrying stick-and-ball sports. In 2000, the network carried NBC’s MLB ALCS Game 6 in a number of markets as the game conflicted with presidential debate coverage. (McMurphy/Twitter 2.24, Mandel/Twitter 2.24)
All eight CBS-owned CW affiliates skipping LIV Tour
Deadline reported Friday that all eight CBS-owned CW affiliates have refused to carry the network’s LIV Golf coverage, likely due to the relationship CBS has with the PGA Tour. The CW’s affiliate deals only require that stations carry national primetime programming, leaving weekend sports — to this point programming that the network has never aired — vulnerable.
In addition to CBS, other CW affiliates not carrying LIV are owned by Weigel Broadcasting (WCIU in Chicago) and Tegna. As previously noted, LIV will air on Nexstar-owned affiliates in such markets, including WGN in Chicago.
Per the report, Sinclair — the largest station group owner in the U.S. — is believed to have required “some sort of compensation” before agreeing to carry the LIV events. In addition, the Scripps-owned affiliates are said to have agreed “only” because of the company’s broader sports aspirations.
Now owned by Nexstar, The CW began as a joint venture of Viacom and Time Warner in which low-rated netlets The WB and UPN merged into one channel. The CW has never before carried live sports at a national level, though predecessor UPN owned rights to the original XFL and also aired WWE Smackdown. (Deadline 2.24)
