After a judge on Thursday approved the bankruptcy plans of the Cincinnati Reds' former broadcast partner, the Reds and MLB announced what had become obvious last week: The Reds will join at least six other teams that will have games produced and televised locally through MLB in 2025.
The Reds' decision to go with MLB was essentially confirmed with last week's filing in bankruptcy court of its intent to sever ties with Diamond Sports Group, the parent company of Bally's Sports Network (since rebranded FanDuel Sports Network).
That filing was part of the overall plans approved Thursday as Diamond Sports emerged from bankruptcy after nearly two years of reorganization that left DSG with just six of its original 14 MLB teams on renegotiated rights deals: the Braves, Cardinals, Marlins, Angels, Tigers and Rays (with the Royals still in limbo).
The upside for Reds fans is that those willing to pay for direct-to-consumer (DTC) streaming can watch without any geographical blackout restrictions. And those who have cable services that carried Bally's broadcasts last season will still be able to get Reds games on cable in 2025.
The downside is that part about paying DTC fees in addition to whatever other streaming or cable services a fan might have. Season streaming packages for MLB-carried teams with similar arrangements last season had prices starting at $19.99 a month and about $100 per season, depending on the in-market or out-of-market rates.
The Reds and MLB haven't yet announced what cable channels might carry the MLB-produced broadcasts locally.
What it means for the Reds competitively is a steep reduction in local TV revenues, at least in the short- to mid-term, and presumably a related restriction in baseball spending.
The Reds' previous deal was believed to be worth roughly $60 million per year in revenue. Sources had expected at least a 20 percent reduction in that rights fee under a renegotiated contract with DSG and perhaps 50 percent or more with MLB -- the latter viewed as a more stable option even with more uncertainty built into the model. Revenues within this model are not based on a rights fee but instead accumulated income based on such sources as subscriber fees and advertising.
The division-rival Cardinals, by contrast, accepted a three-year, renegotiated deal with DSG that reportedly cut about 25 percent from the original rights-fee value of more than $75 million annually.
The three-year length may not be coincidental.
MLB's national TV contracts expire on the same timeline. MLB and half or more of its clubs might find negotiating strength toward recouping some of the short-term losses by joining in a larger bloc of teams selling various content packages to streaming and cable outlets at that time.
The Reds are one of two NL Central teams among the seven that have partnered with MLB for local broadcast production and distribution, along with the division-champion Brewers. The others: Padres, Diamondbacks, Rockies, Twins and Guardians.