As expected, Main Street Sports Group, owner of the FanDuel Sports Networks, has sent revised offers to clubs across MLB, the NBA, and the NHL as the company looks to remain operational past the current NBA and NHL seasons.
According to a report by Evan Drellich in The Athletic, Main Street sent the offers over the last week and weekend. They are contingent on Main Street finding a buyer to purchase the company in a matter of weeks. If not, the FanDuel Sports Networks will cease operations following the current NBA and NHL seasons, and the 29 teams currently inked to deals with Main Street will be back on the market for local broadcast partnerships.
Last week, reports surfaced that DAZN, a potential buyer of Main Street, had died on the vine. However, Fubo emerged as an unlikely eleventh-hour bidder for the company, though it is disputed if the Disney-owned streaming platform is serious about an acquisition.
Drellich’s recent report confirms much of what Sports Business Journal reported last week. For one, Main Street is seeking three-year deals with MLB clubs that would take them through 2028, when MLB plans to go to market with its entire suite of national rights and as many local rights as it can muster. These new deals would include delaying rights payments until the second and third quarters of this year, agreeing to a 50-50 profit share with a minimum guarantee for next season, and taking yet another rights fee reduction for the following season.
It’s worth reiterating, these deals are all contingent on whether or not Main Street can find a buyer in the first place, which itself seems like a decently long shot.
However, if Main Street is able to find a buyer, it does seem likely that some teams would agree to the company’s new terms. Even though clubs would be forced to undergo significant rights fee reductions, it’s likely that for some teams, even the diminished agreements would earn them more revenue than joining MLB’s media arm, which is essentially an “eat what you kill” model where teams earn revenue based on the amount of subscribers they secure, advertising they sell, and distribution deals they can ink with cable and satellite companies.
Within the next few weeks, we should know the fate of the FanDuel Sports Networks, and teams (and fans) will finally have some answers about where games will air next season.