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Major League Baseball announced Thursday that Billy Chambers has been appointed to the newly created position of executive vice president of local media. The job creation makes sense as the league faces a bleak future for regional sports networks that broadcast the majority of their games in local markets.
RSN has been important to league business since the 1990s and is one of the most important revenue streams for teams. They’ve helped raise the team’s ratings and pay players’ salaries. About 70 million households pay for cable today, compared to over 100 million in 2012.
The problem is felt most acutely by the Sinclair Broadcast Company, which spent more than $10 billion to acquire nearly 20 networks from Disney in 2019. Late last year, Sinclair wrote off its acquisition debt for the second time, citing his loss of more than $1 billion in the third quarter of 2022. Cash flow was half of what was projected at the beginning of the year.
In December, Commissioner Rob Manfred said the RSN model as it currently exists “is probably not sustainable in the long term as a result of many people opting out of cable bundles.” “We’re interested in coming up with new models that are more sustainable and offer better reach in terms of how fans get their games, whether they’re in a bundle or not,” Manfred said. I was. of the bundle. ”
Hiring Chambers is a step in that direction, with the league planning how it will monetize and distribute local television rights. Another high issue is local blackout restrictions, frustrating some fans who can’t see teams playing nearby due to TV rights deals.
Chambers previously served as Chief Financial Officer and Chief Operating Officer of RSN, which was acquired by Sinclair. He also helped with the sales process. Prior to Sinclair, Chambers was an executive at Fox Sports, where he worked for 20 years.
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