A Deal Is Made

Less than 12 hours before the first pitch of the 2020 season for the Cubs, the Marquee Network showed up on Comcast systems in the Chicago area, signaling a carriage deal had finally been reached.  Crane Kenney, president of business operations for the Cubs, confirmed a multiyear deal in multiple media interviews yesterday, but details were not disclosed and Comcast has yet to release a statement.  It’s still unclear how much Comcast will charge subscribers for the addition of Marquee to their service.

In related news, Sinclair Broadcasting, the partner of the Cubs in the Marquee Network, is using their local television stations to push a conspiracy theory this weekend that suggests Dr. Anthony Fauci, the top expert on infectious diseases in the US, was responsible for the creation of the corona virus.  Between the Ricketts family’s relationship with Donald Trump and their dealings with Sinclair, it is getting harder and harder to support the organization.

The Marquee Sports Network

The long awaited announcement of the creation of a new Cubs-owned network finally came 2 weeks ago.  The Marquee Sports Network will launch in 2020, in time to air spring training games.  “We are excited to better serve our fans with expanded and exclusive programming showcasing our remarkable players, beloved ballpark and storied past,” president of business operations Crane Kenney said in a press release, “Our dedicated ‘Cubs-centric’ network will carry all available Cubs games and feature uncompromising, in-depth and behind-the-scenes coverage.”

The Cubs also announced that broadcasters Len Kasper and Jim Deshaies will continue to be involved with the live game broadcasts. The network will also provide extensive pregame and postgame coverage, original Cubs-related content and other live sports programming, per the release.

As rumored, the Cubs partner in the new venture is Sinclair Broadcast Group.  Sinclair has come under fire over the past couple years for its right-wing political slant and forcing its individual TV stations, of which WGN narrowly avoided becoming earlier this year, to air hard-right commentary.  “From our view, the reason Sinclair was such a good partner had to do with their technical capacity,” Kenney said on the Mully & Haugh Show on The Score.  “In terms of the programming on the channel, that will be exclusively our control. So what our fans, what the consumer sees when they turn the channel on will be something the team controls, as it should be, given that we know fan base and the team better than anyone.”  Later, Crane added, “While Sinclair’s TV stations may have a right-leaning bent, you won’t see any of that on our channel.”  This, of course, avoids the fact the Cubs fans who disagree with Sinclair’s politics may not feel good about contributing to their profits, even if their propaganda doesn’t air on the network.

The big outstanding question is carriage fees and clearance.  Industry reports say that the carriage fee that the network will request from cable operators could reach $6 per month, easily on the high end of the spectrum.  High carriage fees have led to clearance issues in the past for other teams.  When the Dodgers teamed with Time Warner to create SportsNet LA in 2014, they changed $4.90 per subscriber.  The end result was that Dodger games were, and continue to be, available to only about 30 percent of the Los Angeles market.  By June 2017, SportsNet LA’s ratings for Dodger games had dropped 49% from 2013.

Given the availability of Cubs games on WGN’s superstation for years, the team expects the new network to draw subscribers from much of the Midwest, if not the entire country.  But, convincing cable operators to add the channel on a non-premium tier and passing that $6 per month charge along to all customers, at a time when cord cutting is eroding their subscriber base, may be a tough sell.  Time will tell if this works out as well as the Cubs expect it to, or if they missed the boat on the RSN gravy train that is already showing signs of drying up.

Remaking the TV Landscape

Earlier this week, news broke that the White Sox, Bulls, and Blackhawks were nearing a new 5 year deal with NBC Sports Chicago following the expiration of their current contract in 2019.  The Cubs are expected to branch out on their own, creating the new Marquee network to carry their games.

Assuming the White Sox rebuild progresses as expected, this could be a good situation for them.  The 5 year deal gives them time to rebuild their audience with known partners while the sports world waits to see what the future of RSNs are and how, and if, in-market streaming comes to fruition.

The Cubs, on the other hand, are risking many things with their new venture.  The Dodgers did something similar a few years back and, while they received a tremendous amount of money for doing so, they still are having issues finding clearance among cable providers and most of their games are unavailable to a majority of their fanbase in Southern California.  Should the Cubs have similar issues, especially since they are spurning the largest cable provider in the Chicago area to create their new network, they will face considerable fan backlash.

Another issue the Cubs may have to deal with is the reputation of their reported partner in the new venture, Sinclair Broadcast Group.  Sinclair has come under fire over the past couple years for its right-wing political slant and forcing its individual TV stations, of which WGN narrowly avoided becoming earlier this year, to air hard-right commentary.  While that political stance seems to fit well amongst most of the Ricketts family, it will be a hard sell to many in the Cubs fanbase should it bleed over into their broadcasts.