The Arizona Coyotes, an NHL team, have recently made a significant move by securing a multi-year deal with broadcast station owner E.W. Scripps Co. to showcase their local games on over-the-air networks. This transition from cable TV to broadcast signifies the mounting pressure faced by cable TV bundles due to cord-cutting, while at the same time broadcast stations seize opportunities to acquire more sports media rights. With the NHL season scheduled to begin on Tuesday, this strategic move by the Coyotes has garnered attention and appears to be a response to Diamond Sports Group’s decision to reject its contract with the team, placing focus on the team’s local games airing on Bally Sports Arizona.
Earlier this year, Diamond Sports Group, the largest owner of regional sports networks, rejected contracts with several professional teams, including the Arizona Diamondbacks (MLB), the Phoenix Suns (NBA), and the Phoenix Mercury (WNBA). Consequently, these teams sought new TV homes for their local games. The Coyotes faced the same situation, leading to their recent deal with E.W. Scripps Co. However, the details of this agreement with Scripps have not been disclosed. It is worth noting that Diamond’s rejection has rendered Bally Sports Arizona defunct, as the company deemed the network “not profitable.” This decision has left various teams in search of new broadcast partners.
Broadcast station owners like Scripps and Gray Television have been actively competing for the rights to broadcast local games, capitalizing on the opportunities arising from the Diamond Sports Group’s bankruptcy filing. Scripps, in particular, has already secured deals to carry the NHL’s Vegas Golden Knights and a series of WNBA games on its networks. Warner Bros. Discovery, on the other hand, is in the process of exiting the regional sports network business as part of its merger with Warner Media and Discovery. Consequently, more teams will be available for negotiations as a result. For example, the Houston Astros (MLB) and the Houston Rockets (NBA) recently announced the acquisition of AT&T SportsNet Southwest, aiming to relaunch it as the Space City Home Network.
The landscape of local games has undergone significant changes as consumers increasingly abandon traditional cable TV bundles and opt for streaming services. This shift in viewing habits has impacted the economics of regional sports network businesses, which have historically sustained leagues and teams through high fees. While broadcast networks offer free over-the-air channels that widen the reach and potential viewership of sports teams, it remains uncertain whether deals with broadcast stations can replicate the financial success of the traditional regional sports network business model. The ongoing bankruptcy proceedings of Diamond Sports Group exemplify the challenges faced by the industry, as the company halted rights fee payments to certain teams and strives to renegotiate other payment deals while under bankruptcy protection.
The Arizona Coyotes’ decision to secure a new TV home for their local games reflects the shifting dynamics of the sports media industry and highlights the pressure faced by cable TV bundles. With the team’s games set to air on over-the-air networks through a partnership with E.W. Scripps Co., the Coyotes aim to reach a wider audience and adapt to evolving consumer preferences. As regional sports network businesses undergo changes, including bankruptcies and acquisitions, the future of broadcasting local games remains uncertain. While teams explore various options, including streaming services, the industry continues to grapple with finding a sustainable and profitable model in the rapidly evolving media landscape.
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