Details On Lockout's Potential Impact On Broadcast Deals

Key Points:

• The MLB collective bargaining agreement expires on December 1, with an expected lockout that could significantly impact broadcast deals, especially if at least 60 games of the 2027 season are canceled.
• If 60 or more games are missed in 2027, national media deals would extend from 2028 to 2029, with no fees paid for 2029 if the entire season is lost; partial seasons would involve reduced "bargain rate" fees.
• Local broadcast deals vary, but teams could start losing money if fewer than 125-145 games are played, with some contracts requiring rebates or reduced payments based on games missed.
• National TV revenue is crucial, accounting for about 26% of team revenues, while local broadcasts contribute roughly 21%, though this figure may be lower now due to cable-cutting and changes in regional sports network contracts.
• Both players and teams face financial pressure during a lockout, providing incentives to avoid extensive game cancellations; the upcoming labor dispute and CBA negotiations will have significant long-term effects on MLB economics.