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Big changes could be ahead if FOX sells its regional networks to Disney, owner of ABC and ESPN. The Cards are to own 30% of FS Midwest as part of the new $1B rights deal that runs from 2018-2032.
We have no way of knowing what the contracts say (if anything) about ownership rights when one of the two parties sell. My base assumption would be that the Cards continue to own 30% with ESPN holding the other 70, but that is just a guess.
What may be most interesting to us on the outside is what changes ESPN decides to make to the RSNs once they take over and how that might affect what we see and how much we pay for it. All of that is down the road, of course.
It is an interesting development. ESPN appeared to be doomed but this might be their ticket to survival. Disney has deep pockets though.
Interesting. ESPN certainly needs to address their declining numbers. The entire industry that was built on cable customers is in decline, as traditional home entertainment consumption moves to internet providers.
What I do not quite understand is this comment from the article:
Source says Murdoch has not been high on the RSNs for several years. Same old media story: rights fees rising at a faster rate than affiliate revenue.
This same scenario will be happening with ESPN’s ownership. Thus it looks like they are attempting to reverse their current trend in the short run, but to do so are taking on another source of revenue with declining NOI.
bikemike, I hear you. I fear this could end with higher prices/fewer options for the consumer. I surely hope not, though.
I fear this could end with higher prices/fewer options for the consumer. I surely hope not, though.
Yeah, I can see that as a possibility. That is the way it often goes. In corporate-ville, there is so much M&A activity as firms can gain efficiencies by combining. But a negative outcome is that it can also reduce consumer choice. Not too mention jobs lost, usually middle class jobs. The execs make out like bandits in those situations, but employees often are shown the door due to over-lapping tasks.
The sale was formally announced Thursday morning.
https://www.newsweek.com/what-disney-fox-espn-means-watching-sports-fs1-747712
Will the new FCC ruling have any effect on streaming mlb or other sports options?
And Brian you will begin to see some of these cord cutting options begin slowly to creep up in price along with internet. They’ll figure out a way.
An update on this situation.
Who Will Become FOX Sports Midwest’s New Owner, Since ESPN Can’t Be?
Prices are likely to go up. There is not enough competition to prevent it. This allows a sweetheart deal with the teams for access rights that enriches the teams and for the cable company to soak the consumer for it’s profit.
There is an old adage that the longer you are with a vender the greater advantage to the vendor. I was once responsible for negotiating insurance contracts for a mid-size company. In my first year on the job the insurance company that had provided our company paid employee life insurance for years hit us with a renewal contract with a 33% increase in premiums. Our insurance consultant recommended that we accept. I said no, we are going to put it up for bid. We ended up with nearly a 20% reduction in premiums. Some fly by night insurance company;no, it was with Travelers. We also got a new insurance consultant.
You do not have the luxury of going out for bids with little or no competition.
Wow!
The regional sports networks reportedly included in the Amazon bid include the TV home of the #stlcards, FOX Sports Midwest. https://t.co/Ak9hQzHDpQ
— Brian Walton (@B_Walton) November 20, 2018
That is interesting. I kind of figured Fox would try to get the RSN’s back but maybe not. Amazon obviously has deep pockets.
FOX corporate not interested in buying back 22 regional sports networks (including FOX Sports Midwest) that Disney is required to sell. https://t.co/ykhx9EwX8i
— Brian Walton (@B_Walton) January 11, 2019
Hard to say. If a new media company acquires the RSNs, it could complicate access. The goodness of FOX was that it was a known, but since they had made the strategic decision to sell last year, it isn’t surprising they did not change their mind this year.
Could the Cardinals buy Fox’s stake in Fox Sports Midwest considering the fact they own a minority stake in the network? Has the DeWitt’s expressed any interest in doing so?
Welcome, David. First question – yes, they could try. In fact, the YES Network is part of the group of 22, and there have been rumors the Yankees may want to buy it back. Second – I haven’t heard anything about that, but I will see them in about 10 days and will ask.
Sinclair is being reported to be the winner and will be the new majority owner of FOX Midwest. The first story is from April 19. The latter is from tonight. The formal announcement may be Friday.
https://seekingalpha.com/news/3458494-sinclair-10b-plus-deal-acquire-former-fox-sports-nets-wsj
I wrote about why Sinclair's purchase of all the FOX regional sports networks that air about half of all MLB games could be dangerous for fans and the game. https://t.co/Msnm1YrpFj
— Craig Edwards (@craigjedwards) May 7, 2019
I have NO desire for even one cent of my money to go to Sinclair. So that means not only will I not subscribe to FSM, I will not subscribe to MLB Network or any other service and rebroadcasts Sinclair’s broadcasts. (I assume that what ever service would have to pay Sinclair a portion of my subscription fee.)
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