A report from Sportico earlier this week claimed AT&T SportsNet short-changed three MLB franchises for its scheduled rights fee payments.
AT&T SportsNet stations in Denver, Houston, and Pittsburgh reportedly gave the Colorado Rockies, Houston Astros, and Pittsburgh Pirates their rights payments on time, but they were not the totals listed in their contracts with the teams.
“An executive with direct knowledge of the RSNs’ financial dealings confirmed to Sportico that the AT&T outlets in Denver, Houston and Pittsburgh submitted their most recent rights payments to their MLB clubs in a timely fashion, although the disbursements were not commensurate with the contracted rates,” Anthony Crupi claimed.
Crupi added that the “precise amount of the funds withheld” from the franchises wasn’t available, but it was “significant enough” to raise concerns that Warner Bros. Discovery may not be interested in operating the regional sports networks.
However, Adam Bittner of the Pittsburgh Post-Gazette spoke with an AT&T SportsNet source who refuted the claim the network hadn’t met its contractual obligations, claiming the rights fee payments to the franchises aren’t due until the MLB season begins.
AT&T SportsNet agreed to a contract extension with the Pirates in 2019, and pays the team a reported $44 million per year.
The report that AT&T SportsNet failed to pay its full rights fee to three MLB franchises comes on the heels of Diamond Sports Group’s Bally Sports-branded regional sports networking skipping a $140 million debt payment with a reported intention to eventually declare bankruptcy after a 30-day grace period ends.
