MLB commissioner Rob Manfred told reporters on Wednesday that if Diamond Sports Group, the company that runs the nationwide array of Bally Sports network, misses its payments to clubs, those clubs will indeed terminate their agreements, at which point the league would look to producing and distributing those games itself.
As Manfred explained MLB's backup plan, the league would try to get the games aired on local cable like usual, while creating a new option for fans to stream local games, which has long been forbidden under the usual RSN structure:
"We've been really clear that if Diamond doesn't pay, under every single one of the broadcast agreements, that creates a termination right and our clubs will proceed to terminate those contracts. In the event that MLB stepped in, what we would do is we would produce the games, we would make use of our asset, the MLB Network, to do that. We would go directly to distributors — meaning Comcast, Charter, the big distributors — and make an agreement to have those games distributed on cable networks.
"We would also be seeking flexibility on the digital side, so that when you look at MLB.tv, you'd go in, you can buy your out-of-market package like you've always had, but you would have the option to buy up into in-market games, which I see as a huge improvement for fans."
When asked if he anticipated MLB would be able to replace 100 percent of the revenue that teams were due to receive, Manfred responded simply "not in the short term."
The following teams' local broadcast rights are owned by Bally Sports networks: the Arizona Diamondbacks, Atlanta Braves, Cincinnati Reds, Cleveland Guardians, Detroit Tigers, Kansas City Royals, Los Angeles Angels, Miami Marlins, Milwaukee Brewers, Minnesota Twins, San Diego Padres, St. Louis Cardinals, Texas Rangers and Tampa Bay Rays.