What Are Regional Sports Networks? Do They Have a Future?

Darryl, a regional sports network is a TV channel focused on sports in a specific market rather than a national sports network such as ESPN. The regional sports networks, known as RSNs, obtain the rights to air the games of local teams in leagues such as the NBA, NHL and MLB, Major League Baseball. For example, if you live in the New York Yankees market, you can watch the Yes Network’s broadcasts of the team’s games in that market.

The regional sports network licenses the channel to pay TV providers such as cable and satellite who pay them carriage fees. In addition, a RSN sells advertising spots that air during live games and other programming. In the last few years, many RSNs have launched direct-to-consumer (DTC) streaming apps that consumers can subscribe to without getting a pay TV bundle.

This has generated additional revenue for RSNs although it could ultimately hurt their pay TV carriage revenue because cable and satellite operators might pay less to carry them if their customers can get the games via the DTC app. Dish Network is one TV provider that now refuses to carry RSNs because company chief Charlie Ergen says they are not economically viable.

Main Street Sports, a regional sports network company formerly known as the Diamond Sports Group, declared bankruptcy in March 2023, triggering predictions by some analysts and journalists that the RSN business was cooked. However, 20 months later, the company emerged from bankruptcy with more than two dozen contracts with MLB, NHL and NBA teams. (Main Street Sports’ channels are branded FanDuel Sports.)

In addition, high-profile RSNs such as the Yes Network, NESN and Marquee Sports Network continue to flourish. While some RSNs will likely still struggle as the economics of sports evolves, the pro leagues seem to understand they can now make the most money selling their TV rights to RSNs rather than launching their own broadcasts. This could change in the next few years, particularly with Major League Baseball which has said it would like to offer all RSNs under its own umbrella. But for now, the RSN remains an important part of sports and television.

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