The fate of AT&T SportsNet Pittsburgh appears to have been resolved: Fenway Sports Group, which owns the Pittsburgh Penguins, will buy the cable channel from Warner Bros. Discovery in a deal that’s expected to close in October, according to a report from Sports Business Journal. Terms of the deal were not disclosed.
For a while, Fenway has seemed like the most likely buyer not only because of its ownership of the Penguins, whose games currently are televised on AT&T SportsNet Pittsburgh, but also because Fenway has experience with regional sports networks through its majority ownership of New England Sports Network (NESN).
“With the recent changes at AT&T SportsNet Pittsburgh, Warner Bros Discovery, the Pittsburgh Penguins and NESN have been working collaboratively to ensure that fans have access to their favorite teams this fall,” the Penguins said in a joint statement.
“Discussions are progressing well, and we expect exciting news in the coming weeks.”
What’s unclear is what will become of the Pirates broadcast rights and whether those games will also be carried by the channel under Fenway’s ownership.
Sports Business Journal suggests the Pirates may cut a deal with Fenway to remain on AT&T SportsNet Pittsburgh, or they could opt to hand their television rights to MLB, which would handle production, find cable distribution and pay the team roughly 80% of its current rights fee. A decision on which course the Pirates take may not come until near the start of the 2024 season.
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A name change for AT&T SportsNet seems likely as does the possibility that Fenway could launch a direct-to-consumer streaming service for the channel as Fenway did with the Red Sox last year.
A representative for Warner Bros. Discovery declined to comment.
Warner Bros. Discovery announced in February plans to sell all of its RSNs, including AT&T SportsNet Pittsburgh. Insiders at WBD have stressed for months a goal to exit the RSN business with as little negative impact on viewers as possible. A sale to Fenway seems like it will achieve that goal.
RSNs, which once made money hand over fist, have suffered as the cost of sports rights increase even as fewer viewers tune in and more cable subscribers cut the cord — double-digit annual declines in cable/satellite subscriptions are now common — reducing RSNs’ income.
