Part 4/7:
Utilizing the San Diego Padres as a case study, the commissioner highlighted the MLB's relatively new strategy of taking broadcasting rights in-house. While this approach is framed as a success story, the financial implications raise eyebrows. Reporting tens of thousands of direct-to-consumer subscriptions appears impressive at first glance, but a closer look reveals troubling revenue realities.
Analyzing Financial Viability
For instance, if each of the 30,000 subscriptions generated $150 a season, the total revenue would be approximately $4.5 million. When contrasted with historical local rights deals, which could be valued at around $80 million annually—regardless of viewer numbers—this new model lacks the heft necessary to sustain teams' financial health.