Warner Bros. Discovery — owner of AT&T Sportsnet-branded regional sports networks — has informed the franchises that it currently has rights deals with that it will be exiting the regional sports network business.
According to a report from Sports Business Journal, the company — which operates channels in Denver, Houston, and Pittsburgh, and also holds a minority stake in Root Sports in Seattle — will give the franchises until March 31st to negotiate an agreement to take their rights back. If an agreement isn’t reached, the channels will file for Chapter 7 liquidation.
“AT&T SportsNet is not immune to the well-known challenges that the entire RSN industry is facing,” a Warner Bros. Discovery spokesperson told SBJ. “We will continue to engage in private conversations with our partners as we seek to identify reasonable and constructive solutions.”
The company has rights deals with four MLB teams (Astros, Pirates, Mariners, and Rockies), three NBA teams (Trailblazers, Jazz, Rockets) and three NHL teams (Penguins, Kraken, and Golden Knights), and is reportedly open to offering the franchises their rights back for no cost.
Warner Bros. Discovery holds a 40% share of Root Sports in Seattle, while the Mariners own the remaining 60%. WBD informed teams that it will allow the clubs the ability to continue using the same production staff and equipment to produce the broadcasts.
The announcement comes on the heels that Diamond Sports Group — which owns the Bally Sports-branded regional sports networks — are on the verge of bankruptcy. Those channels are currently carrying around $8 billion worth of debt.
