Sinclair Buys Regional Sports Networks From Disney in $10.6 Billion Deal

The big deal: Sinclair Broadcast Group (SBG) is buying 21 regional sports networks (RSNs) from Disney for ≈ $10.6B.

The YES Network recently sold in a separate deal for ≈ $3.5B.

Key details for the RSNs:
1) 21
2) 42 teams
3) $3.8B in revenue
4) 74M subscribers
5) $51.35 in revenue per subscriber/year
6) $4.28 in revenue per subscriber/month

Why this matters #1: These RSNs carry 42 different MLB, NBA, and NHL franchises which will provide SBG with a massive distribution footprint to go along with their local TV stations.

Why this matters #2: Local baseball is the most-watched primetime program (broadcast or cable) in 11 of the 29 markets narrowly missing out on the 12th by one-hundredth of a point (New York Yankees).

Why this matters #3: Early estimates had the value at $16–20B and the final sale price ($14.1B) is 21–30% lower. Is this the first sign that sports media rights have peaked or just a blip?

Did someone say profit? The average MLB team generated $40M of profit last year.

MLB team profit by year according to Forbes (YoY growth):
1) 2017 — $29M
2) 2018 — $40M (↑ 27%)

Damn: The average MLB team is now worth $1.8B which is up 8% YoY. It looks like Mrs. Screens, and I are going to be cutting back on eating out to save up the $1.1B for our Reds (still the plan BTW)!

More #1: Sinclair to Acquire Sports Networks From Disney

More #2: Baseball Economics And The Fate Of App-Based TV

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