Victory+ Anticipates DAZN Decision as Main Street Momentum Builds
With potential changes looming for Main Street Sports Group, key franchises from the NBA, NHL, and MLB are in active negotiations with the streaming service Victory+. This platform offers a unique model characterized by modest rights fees, minimum guarantees, and revenue-sharing opportunities.
Victory+ Keeps Local Broadcasts Alive
The urgency among 29 professional teams highlights the precarious position they find themselves in. By the end of the week, DAZN, or potentially another bidder, must decide on acquiring Main Street, whose financial stability is uncertain. Teams are under pressure as they face a $100 million rights fee gap following Main Street’s failure to meet payment deadlines.
Market Pressures and Team Strategies
- Date of next rights fee payment: February 1, 2024
- Teams are considering options: switching to free over-the-air broadcasting or aligning with NextGen streaming apps.
- Victory+ could offer a reliable replacement that pays promptly.
Neil Gruninger, President and CEO of A Parent Media Company (APMC), which operates Victory+, expressed concern over the situation but remains optimistic. “If everything falls through, we would happily take on teams to ensure fans can watch their games,” he stated.
Victory+’s Unique Selling Proposition
Victory+ markets itself as a free streaming option, appealing particularly to younger demographics and leveraging digital broadcasting’s rise. Key advantages include:
- Zero costs to viewers enhances audience reach.
- Revenue sharing incentivizes teams to engage local partners.
- Potential for teams to regain pre-2022 rights fees within two to five years.
Success Stories with Victory+
The case of the NHL’s Dallas Stars provides a compelling endorsement for Victory+. The Stars departed the earlier broadcaster due to concerns over its model and entered into a seven-year deal with Victory+ in September 2024. Observing a significant increase in ticket sales and merchandise, they quickly noted that collaboration could be beneficial.
Statistics from the Stars’ Transition
- Ticket sales increased by 9.3% YoY during the 2024-25 season.
- Merchandise sales surged by 9.5% YoY.
- Mid-season ticket sales show a current increase of 14.3% YoY, with merchandise sales rising 56.6%.
Similarly, the Anaheim Ducks, despite a challenging season, have ranked highly in jersey sales, supporting the idea that Victory+ can produce viable economic results.
NBA Teams Examining the Streaming Model
While NBA teams express interest in Victory+’s model, concerns remain about transitioning to a streaming-only format. The MLB’s Texas Rangers have created a hybrid between traditional broadcasting and Victory+. Their venture involves:
- Simulcasting 15 games over-the-air.
- Offering a subscription streaming option at $100 to $140 for the season.
- Averaging over 100,000 viewers per game.
Teams now have the opportunity to choose either the Rangers’ hybrid approach or the free model offered by Victory+ for local broadcasts.
Conclusion
As the future of Main Street Sports Group hangs in the balance, 29 professional franchises are weighing their options. Victory+ presents a promising model for local broadcasts, capable of providing timely solutions to keep fans connected to their teams. With rapid changes likely, the upcoming weeks will be pivotal for the landscape of sports broadcasting.
