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MLB Looks to Reform Local Media Deals, Payroll Disparity

  • MLB has launched an economic reform committee.
  • The move was spurred by the financial troubles of Diamond Sports Group and payroll disparities between teams.
MLB Commissioner Rob Manfred addresses the media from a podium during spring training.
Jonathan Dyer-USA TODAY Sports

A free-spending owner and a failing media business have spurred Major League Baseball to take action.

The league has created an economic reform committee to address its long-term financial health, according to The Athletic.

The move was partly driven by the financial troubles of Diamond Sports Group, the Sinclair Broadcasting subsidiary that owns 19 Bally Sports regional sports networks. Diamond — which broadcasts local games for 14 MLB teams — missed a $140 million interest payment and is expected to file for bankruptcy soon. 

MLB commissioner Rob Manfred has discussed taking control of the league’s local rights, should that happen.

“We’ve got to find a new model,” he said. “Maybe we ought to be driving the boat, what that model looks like.”

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The other issue prompting the creation of the committee is a more familiar one: revenue and spending disparity between teams. 

The much-discussed topic was raised anew by New York Mets owner Steve Cohen, who will pay his players around $370 million this season, plus around $111 million in luxury tax payments. 

Cohen was willing to go even higher, too, having agreed to a 12-year, $315 million contract with Carlos Correa, before that deal was scuttled by questions regarding Correa’s physical.

Many league owners have long favored a salary cap, which the MLB Players Association strongly opposes.

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