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AL Central Notes: Guardians, McKenzie, Twins, Shaw

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The Guardians appear to have mostly finalized their Opening Day roster, though president of baseball operations Chris Antonetti noted to reporters (including Mandy Bell of MLB.com) that “there is some chance that we make an external acquisition, and if we do, that will affect the composition of our roster.”

Barring such an acquisition, however, it seems likely that Cleveland will open the season with three catchers on their roster, as both Cam Gallagher and Meibrys Viloria appear set to make the team and back up starting catcher Mike Zunino. With multiple back-up options, the Guardians are hoping that Zunino will have a lighter workload in 2023 after missing the second half of the 2022 season due to surgery for thoracic outlet syndrome. That comes at the expense of depth in the infield and outfield, however, as Gabriel Arias figures to be the sole infielder on the bench, with Will Brennan the sole outfielder. On the other hand, that should help both youngsters get additional playing time to aid their development. That’s particularly valuable for Arias, who played just 82 games last year between Triple-A and the majors after missing two months on the injured list last season.

More from around the AL Central…

  • Sticking with the Guardians, manager Terry Francona told reporters, including Bell, that right-hander Triston McKenzie was dealing with right arm tightness that led to him being pulled from his start today after just one inning. McKenzie figures to be a key cog at the front of Cleveland’s rotation this year after he posted a 2.96 ERA in 191 1/3 innings of work last season, so long as his current ailment doesn’t prove to be more serious than initially believed. In the event that McKenzie misses time, the club could look to a depth option like Konnor Pilkington or Jason Bilous to fill McKenzie’s spot in the rotation.
  • The Opening Day pitching staff in Minnesota came into further focus today, as the Twins optioned Bailey Ober to Triple-A, per The Athletic’s Dan Hayes, following their decision to reassign Jeff Hoffman, per Betsy Helfand of the St. Paul Pioneer Press. Ober figured to be pushed out of the rotation picture in Minnesota following the club’s acquisition of Pablo Lopez from the Marlins earlier this offseason, and will act as depth in Triple-A following an 11-start showing in 2022 where he posted a solid 3.21 ERA (120 ERA+) in 56 innings of work. Hoffman, meanwhile, signed a minor league deal with the Twins last month in order to compete for a long relief role i the Twins bullpen. Instead, right-hander Cole Sands seems poised to fill that role, leaving Hoffman to decide whether or not to make use of his opt-out clause this coming Tuesday.
  • Shortly after alerting him that he would not make their Opening Day roster, the White Sox announced that they had released right-hander Bryan Shaw from his minor league deal with the club. The veteran Shaw sports a 3.92 ERA in 714 2/3 innings of work during his career and is now poised to look for another club interested in his services for his age-35 season. Shaw made a strong case for himself this spring, pitching to a 1.08 ERA in 8 1/3 innings during camp.

Guardians, Amed Rosario Have Discussed Contract Extension

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Amed Rosario is scheduled to hit free agency after the 2023 season, but the Guardians have some interest in retaining his services over a longer term, as Rosario told The Athletic’s Zack Meisel (Twitter link) and other reporters that the club has touched base with his agents at Octagon about a possible contract extension.  Rosario isn’t considering Opening Day as a deadline for talks, but he isn’t sure if a deal will be reached.

While the Guardians have commonly pursued and reached extensions over the years, the team has generally pursued multi-year deals with younger players who are either early in their arbitration eligibility or are still in the pre-arb phase of their careers.  Recent examples include the extensions Cleveland reached with Emmanuel Clase and Myles Straw just under a year ago, as both deals saw the Guards gain cost-certainty over the players’ arbitration years and also gain control over free agent years, whether via guaranteed years or via club options.  Of course, the Guardians also signed the biggest contract in team history with their extension with Jose Ramirez last spring, but that deal is something of an outlier considering both Ramirez’s superstar status, his specific desire to remain in Cleveland, and his willingness to take a below-market price.

In short, it would represent a departure from Cleveland’s usual tactics if they locked up a player like Rosario, who is a little older (though he’ll only be 28 on Opening Day 2024) than their normal extension targets, and is also on the verge of free agency.  Rosario and his camp are surely also weighing the Guardians’ offers against the wider market as a whole, since if Rosario can even just replicate his 2022 numbers, he’ll be one of the better options available in a free agent class that isn’t terribly deep in position players.

Once one of baseball’s top prospects during his days in the Mets farm system, Rosario hasn’t yet risen to those lofty expectations, yet he has become a solid everyday player over his two seasons in Cleveland.  Rosario’s inconsistency in New York led the Mets to move him as part of the blockbuster trade that brought Francisco Lindor and Carlos Carrasco to Queens, while also giving Cleveland some major payroll savings and two new middle-infield building blocks in Rosario and Andres Gimenez.

It is a deal that has worked out very nicely for the Guardians, considering how Gimenez broke out with one of the best all-around seasons of any player in 2022.  Rosario’s contributions have also been quite respectable, as he has produced 2.4 fWAR in each of his two seasons in Cleveland, hitting .282/.316/.406 over 1258 plate appearances for a 101 wRC+.  His glovework at shortstop is more of a mixed bag depending on your defensive metric of choice, but at least in the view of Defensive Runs Saved and UZR/150, his fielding was strongly above-average in 2022.  Rosario also has some experience as a left fielder and center fielder, though his defense has been mediocre over his small sample size of 171 1/3 innings on the grass.

Given the Guardians’ penchant for trading players as they become too expensive, Rosario has been the subject of trade rumors almost since the moment he joined the organization, as there was even speculation Cleveland might flip him soon after the Mets deal.  However, even with Rosario’s rising price tag and the number of promising young middle infield prospects in the Guards farm system, the front office has held off on a trade, and now might revert course entirely by extending Rosario beyond 2023.  A midseason trade might still be possible if the Guardians were to fall out of the postseason race, or if the team becomes confident enough in its young depth options that it moves Rosario while also acting as deadline buyers in pursuit of another deep playoff run.

The ripple effects of a Rosario extension could include an increased willingness by the Guardians to move one or two of those prospects to address other needs, if the club is indeed eyeing Rosario and Gimenez as the long-term answer up the middle.  Gimenez is under team control through the 2026 season and might be an extension candidate himself, so it doesn’t seem likely that the Guards would pivot to exploring a Gimenez trade if they locked up Rosario.

In terms of available payroll space, the Guardians don’t have much in the way of future commitments, but the team’s traditionally limited spending is itself an obstacle.  Prior to Ramirez’s extension, Cleveland had never spent more than $60MM (Edwin Encarnacion) on a player, and it would seem like the team would have to spend well in excess of that number to cover multiple free agent years of a shortstop entering his age-28 season.  Rosario told Meisel and company that he likes playing for the Guardians, though it isn’t known if he would be open to taking anything close to the relative hometown discount that Ramirez gave the team in his extension.

Guardians Acquire Steve Hajjar From Reds To Complete Will Benson Trade

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The Guardians and Reds finalized the deal that sent Will Benson to Cincinnati tonight, with left-handed pitcher Steve Hajjar, a second-round pick in the 2021 draft who the Reds acquired from the Twins in the Tyler Mahle trade last summer alongside Spencer Steer and Christian Encarnacion-Strand, headed to the Guardians. Both teams have announced Hajjar’s inclusion in the deal.

Hajjar, 22, joins Justin Boyd, Cincinnati’s second round pick in the 2022, as the return going to Cleveland in exchange for Benson, who struggled in a 28 game big league debut for the Guardians last year. Benson, who slashed .252/.353/.479 in 116 games at the Triple-A level for his career, figures to open the 2023 season in the Reds starting outfield alongside TJ Friedl and Jake Fraley.

Hajjar, posted a 3.61 ERA in 52 1/3 innings of work in 2022, his first professional season. While Hajjar played in complex ball, Single-A, and High-A during his first season, the bulk of his innings came at Single-A, where he posted a 2.47 ERA in 43 2/3 innings. Boyd, meanwhile, appeared in 22 minor league games after last summer’s draft, struggling to a .203/.277/.270 line while spending most of his time at Single-A.

Reds Acquire Will Benson From Guardians

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The Reds are adding to their outfield, announcing the acquisition of Will Benson from the Guardians. Cleveland receives outfield prospect Justin Boyd and a player to be named later in the deal. In order to clear a spot on their 40-man roster, Cincinnati designated infielder Alejo López for assignment.

Benson was the 14th overall pick in the 2016 draft out of a Georgia high school. Listed at 6’5″ and 230 pounds, the lefty-hitting outfielder drew praise from prospect evaluators for his massive raw power and exceptionally patient plate approach. That was always paired with questions about his propensity to swing and miss, as his size has led to concerns about the length of his swing path and bat control. That combination of huge physical upside with a number of strikeouts has been on display for the bulk of his minor league career.

He moved slowly up the ranks, not reaching Double-A until the 2021 season. That was in part attributable to the cancelation of the minor league schedule the year before but also reflected the three-plus years he spent at various A-ball levels. He topped 20 home runs in both 2018 and ’19 while drawing nearly as many walks as anyone in the affiliated ranks but consistently struck out at a rate approaching or exceeding 30%. That remained the case in his first Double-A action, though he hit 14 homers with an 18.1% walk rate to earn a brief Triple-A look late in the ’21 season.

Benson struggled in his first 27 Triple-A games, leading the Guardians to leave him unprotected in that offseason’s Rule 5 draft. The draft never transpired because of the lockout and he returned to their top affiliate in Columbus last year. The 24-year-old put together arguably his most impressive minor league showing, hitting .278/.426/.522 with 17 home runs through 401 plate appearances. He walked at his customarily excellent 18.7% rate and stole 16 bases in 20 attempts. Most encouragingly, he cut his strikeout rate to a league average 22.7% clip.

As a result, the Guardians selected him for his major league debut last August. He got into 28 games, hitting .182/.250/.200 with three walks and 19 strikeouts over his first 61 plate appearances. It wasn’t a strong start to his MLB career, though Benson’s Triple-A production clearly elevated his stock relative to where it had been at the opening of the season.

Benson has experience at all three outfield positions throughout his professional career. He’s long been considered best suited for right field given his size and above-average arm strength, though he’s a deceptively good athlete who’s at least capable of covering center field in a pinch.

The Reds will roll the dice on his upside, betting on him to sustain some of the contact gains he made while continuing to demonstrate excellent plate discipline and tapping into his power. He still has all three minor league option years remaining, meaning the Reds can freely move him between Cincinnati and Triple-A Louisville for the foreseeable future. Benson has just 66 days of major league service time under his belt. He won’t reach arbitration until after the 2025 season at the earliest and is under club control through at least the ’28 campaign. Future optional assignments to the minor leagues can push that timeline back further.

Cincinnati doesn’t have much certainty in their short-term outfield mix. Jake Fraley had a solid 2022 campaign and seems the favorite for left field work. Nick Senzel is penciled in as the starting center fielder, though he might be delayed in Spring Training as he recovers from offseason toe surgery. Senzel has struggled enough over the past few seasons his hold on the center field job probably isn’t very strong. There’d seem to be an open battle for reps in right field, with TJ Friedl, Stuart Fairchild, Michael Siani, Nick Solak and perhaps offseason signees Wil Myers and Chad Pinder — both of whom can play other positions — in the mix. Benson steps into that group and could vie for at-bats in Spring Training.

The Guardians have a number of controllable outfield options who looked to be ahead of Benson on the depth chart. The presumptive regular outfield consists of Steven Kwan in left, Myles Straw in center and Oscar Gonzalez in right. While there are some questions about Straw’s offense and Gonzalez’s extremely aggressive plate approach, Cleveland also has Will Brennan on hand as a potential replacement. Top prospect George Valera isn’t far off big league readiness himself.

Considering that depth, the Guardians have now twice subtracted a promising young player from further down the depth chart for a prospect. Cleveland dealt Nolan Jones to the Rockies in November. The Benson trade is a similar move, this time also clearing a 40-man spot while bringing back a player who’s further from major league readiness.

Boyd, 22 next month, was selected with the 73rd overall pick coming out of Oregon State last summer. A right-handed hitting outfielder, he raked at a .373/.490/.577 clip during his final season in Corvallis. Boyd struggled over 21 Low-A games to close out the year but was an excellent college performer.

Baseball America placed him 133rd on their board before the draft, praising his athleticism and collegiate performance but raising questions about his power upside. He’ll likely start next season in either Low-A or High-A for Cleveland and won’t need to be added to the 40-man roster to keep him out of the Rule 5 draft until after the 2025 campaign.

To accommodate the one-for-one swap, the Reds also had to clear a 40-man roster spot. That comes at the expense of López, who has been an up-and-down infielder since June 2021. The 26-year-old has played in 75 big league contests, hitting .262/.307/.321 across 179 trips to the plate. He’s shown plus contact skills, only striking out 14.5% of the time. That hasn’t come with many walks or extra-base impact, though, as evidenced by his modest OBP and lone home run. It was a similar story in Louisville, where he hit .256/.330/.363 with three homers and an 11.5% strikeout percentage through 46 games last year.

López has primarily played second and third base but gotten brief looks in the outfield as well. He’ll be traded or placed on waivers in the next week. López has never been outrighted and doesn’t have the requisite service time to elect free agency if he clears waivers, so the Reds could keep him at Louisville as infield depth if he goes unclaimed.

Image courtesy of USA Today Sports.

Guardians, Daniel Norris Agree To Minor League Deal

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The Guardians are in agreement with reliever Daniel Norris on a minor league contract, tweets Mandy Bell of MLB.com. He’ll report to minor league camp and likely open the season with Triple-A Columbus.

Norris had been in camp with the Reds but was released on Monday. That came on the heels of a tough Spring Training, as he’d allowed six runs (five earned) over 6 2/3 innings with seven walks and five strikeouts. That predictably wasn’t enough to earn a season-opening roster spot in spite of a Cincinnati bullpen that only has one lock for left-handed relief (Reiver Sanmartin).

A veteran of parts of nine big league campaigns, the 29-year-old Norris split last season between the Cubs and Tigers. He threw 58 2/3 innings over 41 outings, pitching to a 5.22 ERA with an above-average 26.4% strikeout rate and a lofty 11.6% walk percentage. It was a tail of two seasons, as Norris had plenty of punchouts and walks in Chicago before trimming both numbers later in the year with Detroit.

The Guardians will be without top southpaw Sam Hentges to start the season, as he’s battling shoulder inflammation. That thinned the left-handed bullpen depth. Cleveland informed reporters this afternoon that 26-year-old Tim Herrin will break camp in the MLB bullpen (relayed by Zack Meisel of the Athletic). He’ll be the only southpaw in Terry Francona’s Opening Day relief corps.

Herrin, a 29th-round draftee out of Indiana in 2018, split the 2022 campaign between Double-A Akron and Columbus. He worked 69 1/3 frames, allowing a 4.02 ERA. Herrin’s strikeout and walk numbers were much more eye-catching than the run prevention. He fanned 34.1% of opponents against a 7.8% walk percentage. Cleveland added him to the 40-man roster over the offseason to keep him out of the Rule 5 draft. He’s now going to get a chance to make his big league debut after striking out 11 with two walks in 9 2/3 frames of five-run ball in camp.

Read The Transcript Of Our Chat Hosted By MLB Catcher Ryan Lavarnway

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Ryan Lavarnway played parts of 10 MLB seasons as a depth catcher. One day after announcing his retirement, he chatted live with MLBTR readers. Click here to read a transcript of the chat.

Ryan Lavarnway entered the professional ranks in 2008. A sixth-round draftee by the Red Sox out of Yale, he was in the majors within three years. Lavarnway debuted in August 2011, appearing in 17 games. He’d get into 46 contests the following season, tallying what would end up being a career-high 166 plate appearances. Lavarnway didn’t hit well that year but contributed a .299/.329/.429 line over 25 games for Boston’s eventual World Series winning club in 2013.

After one more season in Boston, he’d start to move around the league as a third/fourth catcher. Lavarnway split the 2015 season between the Orioles and Braves. He’d appear at the big league level with a different team for five more years, suiting up with the A’s, Pirates, Reds, Marlins and Indians through 2021. Lavarnway’s games played tally was in the single digits in all five seasons. That he got opportunities, however brief, with nearly a third of the league was a testament both to his strong clubhouse reputation and a quality .267/.360/.432 line in more than 2500 Triple-A plate appearances.

The California native ultimately appeared in 165 big league games over parts of ten seasons. He hit .217/.272/.345 with nine home runs, 30 doubles and 50 RBI over 486 plate appearances. He also represented Israel at the 2020 Summer Olympics and twice in the World Baseball Classic. Lavarnway won Pool A MVP honors at the WBC in 2017 after collecting eight hits in 18 at-bats to help the team to a second-round berth that surprised most observers.

Lavarnway played in three games for Israel during this year’s World Baseball Classic to officially wrap up his playing career. Once the tournament ended, he announced his retirement in a thoughtful piece for The Athletic that’s well worth a read in full. Lavarnway conceded he didn’t have a great collection of physical tools but pointed to perseverance, love for the game, and strong support from coaches and teammates for helping him to a 15-year professional career.

Ryan graciously agreed to chat with MLBTR readers this morning. Click here to read a transcript.

Ryan Lavarnway Announces Retirement

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Ryan Lavarnway will be chatting with MLBTR readers tomorrow at 10am Central. Click here to ask questions in advance or join in the chat when it’s in progress!

Veteran catcher Ryan Lavarnway, who spent parts of 10 seasons in the Majors and 15 seasons in pro ball overall, announced his retirement on Wednesday in a thoughtful and poignant piece at The Athletic. Fans of any team are encouraged to read through Lavarnway’s piece, which deftly details the trials and tribulations of a prototypical journeyman who overcame a self-admitted lack of athleticism in large part due to a “sixth tool” — being “really, really good at not quitting.”

Lavarnway, 35, was a sixth-round pick by the Red Sox in 2008 and was twice named the organization’s minor league offensive player of the year. He’s twice suited up for Team Israel in the World Baseball Classic and played 25 games with the 2013 World Series champion Red Sox.

Lavarnway never cemented himself as a regular in the big leagues despite hitting his way into being a prospect of some note with the Sox. The well-traveled backstop writes that he wore 18 different uniforms over his career and was optioned, traded, claimed on waivers or released a combined 26 times throughout his career. Along the way, he appeared for the Red Sox, Pirates, Braves, Athletics, Marlins, Reds, Indians and Orioles.

While he never topped 46 big league games or 166 big league plate appearances in a season, Lavarnway saw a total of 165 MLB games and 486 trips to the plate, during which he batted .217/.272/.345 with nine homers. He wound up accruing more than three years of Major League service time throughout his many MLB stints. Lavarnway also spent parts of 11 seasons in Triple-A, where he was a combined .267/.360/.432 hitter with 79 more homers in 2580 plate appearances. Best wishes to Lavarnway in whatever next step he pursues.

Guardians Notes: Freeman, Arias, Extensions, Mikolajchak

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The Guardians announced Tuesday that they’ve optioned infield prospect Tyler Freeman to Triple-A Columbus. The former No. 71 overall pick and top-100 prospect made his big league debut last season but hit just .247/.314/.286 through his first 86 trips to the plate. That came on the heels of solid but still diminished production in his first run at Triple-A, where he slashed .279/.371/.364 on the season.

Freeman fits the Guardians contact-first archetype, drawing praise for a 60- or 70-grade hit tool on most scouting reports and fanning in just 9.3% of his Triple-A plate appearances to date. However, he’s also lacking in power and faced an uphill battle to make a roster where Amed Rosario and Andres Gimenez have the middle infield locked down.

Add in a disappointing .147/.231/.147 showing in 39 plate appearances this spring, and the decision to option Freeman doesn’t come as much of a surprise. He’ll get another run through the Triple-A level and could still factor into the Cleveland infield before long; Rosario is a free agent following the season, though Freeman will have to contend with fellow prospects Gabriel Arias, Brayan Rocchio and Jose Tena for time in the Guards’ infield mix.

For now, with Arias remaining in camp, it appears he has the inside track on winning a utility job to begin the season. The 23-year-old is seen as a true option at shortstop but has more swing-and-miss issues than most Guardians hitters and hasn’t drawn walks at a particularly high clip in the minors. Arias slashed .240/.310/.406 in Triple-A last season but stumbled with a .191/.321/.319 showing in a tiny sample of 57 big league plate appearances during last summer’s debut. He’s had a big spring showing (.350/.395/.425, 43 plate appearances), and given the strength of his glove, he’s a natural candidate to fill a utility role in the infield, where he can sub in at multiple positions.

While sorting out the bench is a key process for Cleveland decision-makers this spring, the amount of emphasis on who breaks camp with the team can often be overstated. In all likelihood, Freeman will get his share of chances this season, as will Arias, Richie Palacios and others. Injuries are inevitable, and being left off the Opening Day roster is no more a signal that a player will spend all season in the minors than making the Opening Day squad is a free ticket to a full year of service time.

A greater priority for the front office could be trying to lock down some long-term deals with key young players. Jason Lloyd of The Athletic asked president of baseball operations Chris Antonetti about this very topic recently, and while Antonetti obviously wouldn’t delve into specifics, he somewhat “coyly” expressed optimism about getting at least one such contract worked out. Antonetti’s comments don’t necessarily mean a deal is likely, but they’re at least an ostensible acknowledgement that the club has been having conversations with some of its young core. Lloyd speculatively suggests that left fielder Steven Kwan, right-hander Triston McKenzie and Gimenez are the likeliest candidates for such a deal, but it’s not clear whether substantive negotiations have occurred with any of those three, specifically.

That said, extensions for the Guardians were a huge point of emphasis this time last season. Beyond locking up superstar Jose Ramirez on a long-term deal that could keep him in Cleveland for the majority of his career, Antonetti & Co. worked out five-year deals with center fielder Myles Straw and closer Emmanuel Clase in the days leading up to Opening Day 2022.

There’s also one unfortunate health update out of Guardians camp this morning. Manager Terry Francona revealed this morning that right-handed relief prospect Nick Mikolajchak has been diagnosed with a sprained ulnar collateral ligament in his pitching elbow (Twitter link via Mandy Bell of MLB.com). Francona didn’t provide a specific grade of strain or a treatment plan, as the team is still gathering information and determining the next steps for the 25-year-old righty.

Mikolajchak had a huge 2021 season in Double-A, where he pitched to a 3.18 ERA with a gaudy 35.8% strikeout rate against a 5.7% walk rate. FanGraphs’  Eric Longenhagen noted this spring that a late-2021 shoulder injury might’ve impacted Mikolajchak in 2022, when his velocity was down and his walk rate was up — though he still pitched to a sharp 3.04 ERA in his first stint at the Triple-A level. Francona offered praise for the 2019 eleventh-rounder’s spring performance, when he posted 4 2/3 innings of one-run ball with six hits, one walk and four strikeouts.

Guardians Sign Jhon Romero To Minor League Deal

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The Guardians announced Monday that they’ve signed right-handed reliever Jhon Romero to a minor league contract. He’s headed straight to minor league camp and will appear in a minor league game for them today, per the team.

Romero, 28, has seen brief big league time in each of the past two seasons. He tossed four innings for the Nationals in his MLB debut in 2021 and pitched five innings with the Twins in 2022. In that limited time, Romero has a 4.00 ERA with a 9-to-1 K/BB ratio and a 54.8% ground-ball rate. He made Minnesota’s Opening Day roster in 2022 and looked sharp early on, but he hit the IL after just five appearances due to biceps tendinitis and was never able to get back to the mound. The Twins outrighted him after the season, and he elected minor league free agency.

Romero’s professional career has been limited to 177 1/3 innings, but he’s pitched to an impressive 2.84 ERA with a 27.7% strikeout rate and 6.9% walk rate during that time. He also pitched for Colombia in this year’s World Baseball Classic, allowing a pair of runs in 2 1/3 innings. It should be noted that Romero has only pitched 7 1/3 innings in Triple-A (in addition to his nine MLB innings), so most of his professional success has come at the Double-A level or lower. Still, he’s averaged 94.5 mph on his heater in the Majors, induced grounders and has a strong track record overall. He’ll add a relatively intriguing arm to a Cleveland system that has a knack for developing pitchers and coaxing big performances out of unheralded arms.

Diamond Sports Planning To File For Bankruptcy; MLB Planning To Stream Games For Free Temporarily

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Diamond Sports Group, the corporation that owns 14 Bally Sports regional sports networks, is expected to file for bankruptcy March 17, according to a report from Josh Kosman of The New York Post. The timeline will be awkward for Major League Baseball since the 2023 season opens on March 30, but the league plans to step in and broadcast the games themselves.

It had been reported for some time that Diamond is in financial trouble and they forewent interest payments worth roughly $140MM to creditors last month. MLB Commissioner Rob Manfred said at that time that the league was monitoring the situation, hoping that Diamond would make its payments but also drawing up contingency plans. It was subsequently reported that the league had hired multiple former RSN executives for a newly-created Local Media department, seemingly to get in position to take over broadcasting duties where necessary.

The problem stems from continued cord-cutting as fewer customers are paying for cable bundles these days, opting instead to use streaming services. That leads to decreased revenue from ad sales and cable contracts, creating situations where RSNs are paying teams more for rights fees than they are able to make back from those revenue streams. Per Kosman’s report, there are at least four teams where Diamond plans to reject the contracts via the bankruptcy proceedings. The teams in question are the Reds, Diamondbacks, Guardians and Padres, with the San Diego deal currently $20MM in the red on an annual basis.

The report goes on to state that MLB’s plan is to take over the local TV broadcasts of those teams, as well as streaming them for free in those local markets as they negotiate lower deals with cable companies. It’s not yet clear if fans in blacked-out markets would be able to access those streams in the short-term. If deals are reached, the league plans to offer over-the-top service for around $15 per month. As Kosman notes, that’s lower than some other streaming deals, with the Red Sox charging $29.99 per month. The league also already tried to acquire the rights to all 14 teams currently controlled by Diamond but were turned down. Those clubs are the Angels, Braves, Brewers, Cardinals, Diamondbacks, Guardians, Marlins, Padres, Rangers, Rays, Reds, Royals, Tigers, and Twins.

A similar situation has arisen with Warner Bros. Discovery, which owns AT&T SportsNet and is a minority owner of Root Sports. It was reported last month that Warner was planning to get out of the RSN business, which would have implications for the Rockies, Astros and Pirates, though not the Mariners. Warner only owns 40% of Root Sports Seattle with the Mariners owning the other 60%. Kosman’s report indicates the league plans to take over those broadcasts eventually as well, though not by Opening Day.

This is a fluid situation and many of the details are still being worked out, but it’s possible there is a sea change approaching in how Major League Baseball delivers its broadcasts to its fans. Most out-of-market games are available to paying subscribers via MLB TV, though these RSN deals have always taken precedent, leading to blackouts that prevent fans from watching their local club on the platform. Many fans have been critical of the way these blackouts are applied, with some subscribers saying that their home is covered by various overlapping blackout areas. The people of Iowa, for instance, have often complained that they can’t watch games featuring the Cubs, White Sox, Cardinals, Twins, Royals or Brewers. That’s an extreme example but highlights the sorts of issues with the current system. Manfred has expressed a desire to move to a new system that would allow customers to purchase broadcasts regardless of where they are, though it’s unclear how long it would take to get such a model in place.

Whenever that new system is in place, it will also have implications for the finances for teams. These RSN deals have long been a significant source of club revenue that seems to now be drying up. Streaming will present new revenues sources, of course, and already has. The league has previously agreed to lucrative deals with streaming platforms like Apple and NBC and may strike other deals in the future.

For now, it seems the immediate concern is making sure that the broadcasts for the 2023 season are maintained. Kosman reports that the league plans to retain current local announcers for any broadcasts that it takes over and it doesn’t seem as though there are any current concerns of games being missed. Assuming the league is successful in all of these plans, it’s possible that fans won’t notice much difference in their baseball consumption here this year, but the field may be wide open for changes down the line.

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