Regional sports networks are receiving a bad reputation of late, but Bally’s chair Soo Kim is bullish on their long-term outlook. Kim spoke with Front Office Sports’ Owen Poindexter about the present and future of the medium.
Kim’s company entered into a 10-year, $85 million naming deal with Sinclair Broadcast Group in November 2020. The deal secured naming rights to 21 of Sinclair’s RSNs.
Sinclair is planning on bundling those RSNs into a streaming service. The company outlined the plan in an 8K filing with the SEC. Sinclair believes they could attract 4.4 million subscribers to the service while generating around $2 billion in revenue. The breakdown would be split into three different sections.
Around 1.7 million subscribers to the service would come from the cord-cutter category, which has limited access to their favorite team’s games if they play on a Sinclair channel. The next group would be 1.4 million RSN subscribers from its distributor partners. Finally, the group is rounded out by 1.3 million subscribers on its traditional TV services.
Kim thinks this new streaming service would be a great way to spark gaming and TV integration.
“You can create a very different kind of experience of how sports are consumed,” Kim said to Front Office Sports. “It could potentially be a lot more interactive, a lot more engaging, and we think that’s where the future of sports is going to go.”
Even if the RSN market keeps slowing down, Bally’s got plenty of value over the first year of this deal. “Last year, there were something like 4 billion impressions of the words ‘Bally Sports,’” Kim told FOS.
How much an impression is worth is anyone’s guess but the ultimate goal for Bally’s isn’t to drive sports betting.
“Sports gaming itself is not actually the best gambling product for the house,” said Kim. “There’s variable margins, informational advantages, and liquidity is hard to match sometimes. iGaming is a much better business.”
There were plenty of angles on Bally’s radar when they made this massive naming deal, and so far, they seem pleased with the results.