Main Street Crisis Looms as Teams Anticipate DAZN Strategy

Teams holding local broadcast rights through Main Street Sports Group are bracing for significant changes. A proposal from DAZN could reshape their broadcasting landscape as it pushes forward with the acquisition of the regional sports network operator.

Main Street Sports Group and DAZN’s Acquisition Plans

Executives suggest that teams will soon receive a proposal detailing DAZN’s business plan. This plan may incorporate revised financial terms, compelling teams to decide whether to accept DAZN’s offer or seek alternative local distribution methods.

• 29 teams currently hold rights deals with Main Street Sports Group.
• Teams include MLB, NBA, and NHL franchises.
• If DAZN acquires Main Street, it will significantly broaden its operations in the U.S. sports market.

Broadcast Rights and Financial Concerns

Sources indicate that DAZN might propose lowered rights fees. This proposal is framed under the notion that even reduced payments could still offer a better financial return than over-the-air packages or MLB TV.

Despite potential opt-outs from teams due to these lower fees, the sale’s completion to DAZN is expected to remain intact. However, a significant exit of more than 10 teams could threaten the deal’s viability.

Teams Affected by Financial Strain

Main Street has already demonstrated fiscal difficulties, missing a payment to the Cardinals. Statements from the Cardinals confirm ongoing discussions with various stakeholders about future local media distribution options for their games.

Alternatives for Teams

If DAZN’s strategy falters or Main Street dissolves, teams may explore other routes. Possible alternatives include:

• Operating independently, like the Texas Rangers.
• Joining MLB’s centralized local media structure, as evidenced by teams like the Mariners and Rockies.

Impact on Major Sports Leagues

Acquiring Main Street’s 29 teams would provide DAZN a substantial entry point into U.S. professional sports. This acquisition positions DAZN strategically ahead of upcoming broadcasting negotiations, particularly as all of MLB’s national rights become available post-2028.

The 13 NBA teams managed by Main Street consist of notable franchises such as:

• Atlanta Hawks
• Charlotte Hornets
• Cleveland Cavaliers
• Detroit Pistons
• Indiana Pacers
• Los Angeles Clippers
• Memphis Grizzlies
• Miami Heat
• Milwaukee Bucks
• Minnesota Timberwolves
• Oklahoma City Thunder
• Orlando Magic
• San Antonio Spurs

The seven NHL teams under Main Street include:

• Carolina Hurricanes
• Columbus Blue Jackets
• Detroit Red Wings
• Los Angeles Kings
• Minnesota Wild
• Nashville Predators
• St. Louis Blues

In conclusion, the impending decisions by teams may significantly influence the future of local sports broadcasting and DAZN’s role in the North American sports industry.