December 18, 2023

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The week begins with a full dose of dealmaking and activity. MLB is nearing a critical RSN deal for the 2024 season … the Orioles and Nationals have their own agreement for Mid-Atlantic Sports Network rights fees … Michele Kang is building a global portfolio for women’s pro soccer … and FIFA creates more controversy with its expansion of the Club World Cup.

— Eric Fisher [[link removed]]

MLB Nears Broadcast Deal That Would Secure Revenue for Teams [[link removed]]

Kirby Lee-USA TODAY Sports

Major League Baseball and the bankrupt regional sports network operator Diamond Sports Group are nearing a deal for 2024 game broadcasts that will provide near-term certainty on a critical revenue stream for as many as 11 teams.

The league had been pressing [[link removed]] for months to get an answer on DSG’s plans, particularly which teams it intends to keep showing next season. But during a bankruptcy court hearing on Friday in Texas, lawyers for both sides said a settlement is in development that would answer that question.

“We are in position to believe that we have a framework to move forward,” said James Bromley, an MLB lawyer. “We have a lot of conditions and issues that we still need to work through.”

It is not yet known what terms the potential settlement includes, or how many of the 11 teams would be involved. But DSG and its Bally Sports are currently under contract with the Atlanta Braves, Cincinnati Reds, Cleveland Guardians, Detroit Tigers, Kansas City Royals, the Los Angeles Angels, Miami Marlins, Milwaukee Brewers, St. Louis Cardinals, Tampa Bay Rays, and Texas Rangers. The company’s term with the Minnesota Twins concluded [[link removed]] with the end of the 2023 season.

Much to Be Resolved

The ongoing lack of clarity regarding DSG’s MLB plans for next year has impacted [[link removed]] many of the involved teams, including their budgets and roster development for 2024. The negotiations between MLB and DSG are further complicated by the sometimes-differing goals and priorities among the involved teams, with some teams looking to reclaim their local rights and others preferring to keep the status quo with Bally Sports in place as long as possible.

“There is not a deal until there’s a deal, and there’s also not necessarily a common set of issues,” said Charles Koster, Rangers attorney.

The next court hearing is scheduled for Jan. 10. Even if there is an agreement struck for 2024 MLB broadcasts, DSG still has longer-term concerns, and the company’s parent, Sinclair Inc., has said [[link removed]] that the chances of a DSG liquidation next year are growing. The developing baseball deal is also entangled with a parallel one that DSG holds [[link removed]] with the NBA, and another in development with the NHL.

PODCAST

🎙️ They Said What?

“If you have the viewers, and you have the attendance, then the business side will come as well. That’s been the knock on women’s sports: You don’t command the business case. But I think we absolutely do.”

— Brady Stewart, CEO of Bay FC, on how the NWSL is proving it has a place in the market with record sponsorship deals, a new media rights agreement, and expansion teams across the country. Check out FOS Today to hear more about Bay FC and the growth of the league.

🎧 Listen and subscribe on Apple [[link removed]], Google [[link removed]], and Spotify [[link removed]].

Michele Kang Adds to Her Multi-club Women’s Soccer Portfolio [[link removed]]

Geoff Burke-USA TODAY Sports

A burgeoning professional sports team owner has tripled her portfolio this year.

Michele Kang, owner of the NWSL’s Washington Spirit and the top-flight French soccer club Olympique Lyonnais Féminin (Lyon), just completed a deal to purchase the London City Lionesses, a second-division English club that competes in the Barclay’s Women’s Championship league.

In 2022, Kang paid a then-record $35 million for the Spirit; and earlier this year the Korean-American businesswoman bought a majority stake in Lyon that valued the club at $50 million. Financial terms of Kang’s deal for the Lionesses are not available.

Kang’s sports investments now reside under the banner of the OL Groupe, which was formed at the same time as the Lyon deal and which now claims to be the first multi-club football organization owned and led by women.

London City was formed in 2019 after the women’s team, formerly known as the Millwall Lionesses, broke [[link removed]] away from their male counterparts and competed as a new independent team. Millwall FC currently competes in the second-tier EFL Championship.

Kang’s investment will be much-needed for London City, which is currently 9th in the 12-team Women’s Championship and plays its home matches at the 4,100-seat Princes Park in Dartford, Kent, England, home of sixth-tier, semi-pro side Dartford FC.

Before buying the Spirit last year, the 64-year-old Kang founded the medical technology company Cognosante, of which she remains CEO. She was also previously a partner at the global professional services firm Ernst & Young.

SPONSORED BY NFLPA

Driven for More: NFLPA’s Accelerator Program

What do custom suits, handknit beanies and STEAM toys have in common? They are all driven for more.

Three early-stage companies joined NFLPA Driven this fall as the second cohort of Playmakers [[link removed]]: Brown Toy Box [[link removed]], Reveal Suits [[link removed]] and Sh!t That I Knit [[link removed]]. As part of the sports licensing accelerator program, each company acquires an NFLPA license for product design to bring new and exciting products to market that feature fans’ favorite NFL players, access to business coaching, funding and player marketing consultation.

First launched in 2022, Driven offers diverse founders the opportunity to break barriers in sports licensing and gain unique access to resources exclusive to the NFLPA.

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Learn more about the NFLPA’s Driven program [[link removed]*&utm_medium=Email*&utm_campaign=Driven*Cohort**A232&utm_id=FOS*Placement*12*2F18*-*Driven*Program*__;KysrKyUrKyUrKysr!!ONfqSE10Kw!9FNS71NMC6d-xJ1zMamh3u59y7W5-pgUqwGWaM7nHWvbhT_8rEnmtzFhp2Avm3bQX4ku4Oy8NnOqR2oNSP-B-g$].

Orioles, Nationals Reach MASN Deal, This Time Without Legal Drama [[link removed]]

Brad Penner-USA TODAY Sports

There is another settlement in the long-running Mid-Atlantic Sports Network saga. The last agreement took more than a decade to hash out; this one required only a few weeks of negotiations.

The Baltimore Orioles and Washington Nationals have agreed on the teams’ local media rights for the 2017-21 seasons, jointly telling the Supreme Court of the state of New York that they concur with a recent MLB arbitration decision that each club is due $304 million for those five years, amounting to nearly $61 million annually.

The agreement marks a massive change in tenor compared to the more than 12 years the clubs spent in an active and bitter legal dispute over the 2012-16 rights term, a situation resolved [[link removed]] only this past summer when the Orioles-controlled MASN agreed to pay the Nationals some $100 million in incremental rights fees for that period.

The MASN situation has long been one of MLB’s thorniest issues, with the Nationals arguing they had been receiving below-market rights fees, while the Orioles and MASN contended that network profitability and long-term survival were at risk. The creation of MASN — and the requirement to review rights fees payments due to the Nationals every five years — stemmed from a still-active MLB settlement with Orioles owner Peter Angelos following the Montreal Expos’ 2004 relocation to become the Nationals.

Up Next: Reviving Nats Sale?

The Orioles, Nationals, and MASN will now move to determining the rights fees for the 2022-26 period, though those talks will be overshadowed by cord-cutting and accelerating disruption across the media landscape.

Still, the additional settlement could also help revive a lagging [[link removed]] sale process for the Nationals, as they can now provide additional clarity on its revenue picture. Ted Leonsis, the owner of the Washington Wizards, Capitals, and Mystics, has expressed continued interest in adding to his sports empire.

The deal also provides some needed clarity for the Orioles, who have been entangled in their own uncertainty [[link removed]] surrounding club ownership and a much-discussed lease extension for Oriole Park at Camden Yards.

Details of New-look Club World Cup Emerge and Not Everyone Likes It [[link removed]]

FIFA

FIFA has unveiled the schedule and club selection process for its newly expanded 2025 Club World Cup on Sunday, and almost immediately, the tournament has created a new round of controversy for the global soccer governing body.

The organization carries [[link removed]] high hopes for its newly expanded tournament that will feature 32 top professional clubs in an event, up from seven, to be held in the U.S. and shown domestically on Fox Sports, forming a key part of FIFA’s ongoing efforts [[link removed]] to capitalize on the growing American soccer market.

But within hours of FIFA confirming the tournament dates of June 15-July 13, 2025, and a tournament format requiring finalists to play seven games, the effort was blasted around the world. Global players’ union FIFPRO argued the initiative does not allow for sufficient player rest between professional seasons, and will disrupt the offseason transfer market. Other organizations such as the World Leagues Forum similarly are accusing FIFA of “overloading” the global soccer calendar.

“Decisions to scale competitions have been introduced without implementing appropriate safeguards, and without any say from the players who are at the forefront of driving the game’s popularity and revenue generation,” the union said.

Hard Cuts

European clubs are being chosen primarily based on points earned during UEFA Champions League competitions over the last four seasons, but automatic qualifiers are being granted to Champions League winners, creating some contradictions among the qualifying teams.

Chelsea has qualified for the Club World Cup after winning the 2021 Champions League. But Liverpool will be left out despite having more Champions League points overall than Chelsea, and will miss out [[link removed]] on an estimated $63 million in media revenue from the event.

Conversation Starters Apple released a first look [[link removed]] at its new four-part documentary, Messi’s World Cup: The Rise of a Legend, which will premiere Feb. 21 on Apple TV+. The Philadelphia Eagles filed a trademark [[link removed]] for “TUSH PUSH,” indicating plans to sell branded clothing tied to its staple short-distance-plunge play. The Colorado School of Mines, which fell short in its quest for a Division II national title over the weekend, takes a different approach when it comes to its football helmet stickers: The Orediggers list players’ academic majors instead of ones for their on-field accomplishments. Check it out [[link removed]].

FUTURE OF SPORTS

More Than a Stadium

Everywhere you turn, sports teams are unveiling groundbreaking venues, setting a new standard for fan engagement — an evolution just getting started.

Our most recent virtual summit [[link removed]] immerses you in the transformative initiatives driving this venue revolution. Across three enlightening sessions, we unraveled the reasons fueling the arena and stadium boom, exploring their profound effects on fans, athletes, and advertisers.

Future of Sports: Venues takes a deep dive into the innovations shaping the future of fan experiences.

Be a part of this immersive journey into tomorrow’s sports and entertainment realms. Watch on demand [[link removed]] now!

Editor's Picks While Sports Fans Are Turning Out in Record Numbers, 2024 Isn’t Looking So ‘Rosy’ [[link removed]]by Eric Fisher [[link removed]]Sports fans have made one thing clear in 2023: They have been more eager than ever to attend live games. NCAA Agrees to Suspend Transfer Restrictions For Entire 2023-24 Season [[link removed]]by Amanda Christovich [[link removed]]The temporary restraining order has been extended. The Problem With 43 Bowl Games? Meaning and Name Recognition [[link removed]]by David Rumsey [[link removed]]Bowl games are changing as the College Football Playoff expands. Oregon State, Washington State Win Full Control of the Pac-12 [[link removed]]by Amanda Christovich [[link removed]]The Washington Supreme Court declined to hear an appeal. Advertise [[link removed]] Awards [[link removed]] Learning [[link removed]] Video [[link removed]] Podcast [[link removed]] Sports Careers [[link removed]] Written by Eric Fisher [[link removed]], David Rumsey [[link removed]] Edited by Matthew Tabeek [[link removed]], Adam Duerson [[link removed]]

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