As concerns continue mounting ahead of a potential MLB lockout, the players’ union might have just found its newest roadblock, courtesy of the NBA.
Earlier this week, ESPN’s Shams Charania reported that the NBA’s projected salary cap for the 2026–27 season is roughly $165 million — which is actually $1 million lower than previous expectations. The key difference is a reduction in local media revenue stemming from the ongoing issues involving the FanDuel Sports networks. Nearly half of the NBA’s 30 teams air their local games through those networks, which are slated to cease operations within the coming months.
Although Major League Baseball doesn’t have a salary cap, such a system is arguably the biggest source of disagreement between owners and the MLBPA. The owners want a salary cap, with some even publicly mentioning a salary floor, and the players are vehemently opposed.
Don’t be surprised, then, if we start seeing MLB players push back even further on a salary cap. With NBA players possibly facing a scenario where they’d lose money because of the local broadcast issues, the MLBPA now has a “told you so” moment regarding the risks of a capped system.
The continued chaos with local broadcasts could be a problem with the new MLB CBA
Some social media users were confused about why, or how, the NBA could potentially cite lost broadcast revenue after its most recent television deal. At first glance, it sounded like the NBA was crying poor less than two years after signing an 11–year, $76 billion deal with Amazon Prime, ABC/ESPN, and NBC.
In fairness, the national rights are likely what most people think about when they see a new TV deal. How many games are on a streaming service? Which networks have the playoffs?
The problem that the NBA, MLB, and NHL have right now is with the local broadcast networks. As recently as 10 years ago, a significant number of teams played the bulk of their games on a local Fox Sports network. For the unfamiliar, those were separate from the local Fox affiliate. Simply put, one had live MLB and NBA games throughout the week, and the other is where you’d watch the World Series and cartoons.
We won’t bore you with the entire history of why those regional sports networks are in their final days, but here are the key parts:
- Sinclair bought Fox Sports networks in 2019, and later agreed to a partnership with Bally’s Corporation, a casino operator.
- The partnership gave Bally’s the naming rights to 21 local sports networks. For all intents and purposes, though, there were no major changes to the game broadcasts themselves.
- Diamond Sports Group, a subsidiary of Sinclair, filed for bankruptcy in 2023. As a result, Diamond later rebranded the Bally networks as the FanDuel Sports networks.
- Although business went on as usual last season, Sinclair lost the local broadcasting rights earlier this year. As mentioned previously, those networks are expected to shut down within the coming months.
As a result, 10 of the 30 MLB teams had not confirmed their television broadcast plans as of March 25. Those 10 teams have a partnership with MLB Local Media, though the distribution plans remain vague.
The scenario that has been floated is that the providers that previously carried the FanDuel Sports Network would strike a carrier agreement with those same companies for a standalone channel featuring the MLB team in that market. However, blackouts might be an issue for anyone trying to watch through MLB.TV, and seeing as some providers didn’t have the FanDuel Sports Network, that provides a significant roadblock for fans.
A lack of a long-term local broadcast plan could be a massive obstacle during the MLB CBA negotiations
Even without a background in labor negotiations, it’s easy to see how the NBA’s shrinking local media revenue spells trouble for the 2027 MLB season. The MLBPA is already opposed to a salary cap. It’s an even tougher sell to ask players to buy into a system where their earnings could take a hit just because the local TV model is falling apart.
Remember: NBA teams play 82 games, and unless you’re a title contender, most of those are only seen on your local network. Now, consider that baseball plays double that amount. Any hit to that local broadcast revenue is a massive blow to teams and the league itself.
We must also reiterate that this is far from the league hypothetically saying, “we might eventually give NBC a playoff series” or “we’re unsure if we’ll continue our partnership with Fox.” At least those problems have a clear solution: one of the major networks or streaming services, in the case of someone like Prime or Netflix, will pony up the money.
Major League Baseball will still make its money, and it doesn’t appear to have any financial issues. As is often the case with the four major North American sports, though, the fans have been left behind — and the players might not be much better off.