Astros' Drop In TV Money Could Explain Lack Of Spending
It’s hard to escape the fact that the Houston Astros haven’t spent much money this offseason.
At the start of the new year, MLB Trade Rumors noted that the Astros has spent just $12 million in free agency and on one contract — they two-year deal to sign backup catcher Victor Caratini. The Astros have made other moves via trade or minor-league contracts, but it’s true that in terms of guaranteed money they haven’t spent much.
Part of the team’s reported logic is their desire to get both Jose Altuve and Alex Bregman into new contracts after the 2024 season. There is also the matter of getting a long-term extension done with arbitration-eligible players like Kyle Tucker. Owner Jim Crane also wants to keep the Astros below the Competitive Balance Tax threshold.
But, there could be another reason — TV money.
The Athletic reported on how the crisis among regional sports networks is impacting what most see as a stagnant free agent market. The story was mostly about Diamond Sports Group, the owner of the Bally networks. DSG went into bankruptcy last year and while most of the teams it has contracts with in 2024 have been paid, DSG will get out of the business after 2024.
That means all of those teams are preparing to figure out their TV situation after next season. A few — the Texas Rangers, the Cleveland Guardians and the Minnesota Twins — are still trying to work things out with DSG for 2024. The Rangers are reportedly owed more than $100 million for 2024. It’s not clear if they’ll get any of it.
The Astros, fortunately, don’t have that concern. Early last year Warner Bros. Discovery, the owner of the AT&T Sports Networks, informed their teams they were getting out of the business after 2023.
The Astros partnered with the Houston Rockets to purchase the local RSN’s assets and created Space City Home Network, which launched in October.
That’s good news for Astros fans. The bad news is it that the Astros are taking a financial hit as a result.
Per Essentially Sports, the Astros and Rockets were making a combined $120 million per year with AT&T. The Astros were making $73 million. The Astros will still make money on the new network, but they’re expected to make only $50 million per year, at least to start.
The difference is a contract for a top tier free agency like a Cody Bellinger or a Blake Snell.
For now, that’s something that any franchise that had a deal with AT&T or DSG has to deal with.
