Leadoff: Who will buy Fox Sports South and Fox Sports Southeast?

Joe Simpson, Braves broadcaster on Fox Sports South and Fox Sports Southeast, was inducted into the Braves Hall of Fame this year.

Credit: Steve Schaefer

Credit: Steve Schaefer

Joe Simpson, Braves broadcaster on Fox Sports South and Fox Sports Southeast, was inducted into the Braves Hall of Fame this year.

Fox Sports South and Fox Sports Southeast, the Atlanta-based regional sports networks that televise Braves, Hawks and Atlanta United games, are in play for a new owner.

The U.S. Department of Justice on Wednesday approved 20th Century Fox’s proposed sale of certain entertainment assets to the Walt Disney Co. with the requirement that Disney divest the 22 regional sports networks it would acquire as part of the deal.

The Justice Department objected on antitrust grounds to Disney keeping the RSNs because it already owns industry heavyweight ESPN. Disney agreed to promptly sell off the RSNs if it closes the larger deal with Fox.

The decision doesn’t automatically mean Disney’s $71.3 billion transaction with Fox will be completed because rival bidder Comcast could increase its offer. But it does very much put up in the air the question of who will be the ultimate owner of Fox Sports South, Fox Sports Southeast and the 20 other Fox regional sports networks scattered from Los Angeles to New York.

Industry publication Variety reported that Disney is expected to seek a third-party buyer for the RSNs rather than trying to rework the Fox deal to remove them. Another industry publication, Cablefax, suggested the potential buyers for the RSNs could include Braves owner Liberty Media, Comcast, AT&T, Charter and Discovery, among others. One of the RSNs, New York's YES Network, reportedly could be bought back by the Yankees.

Disney would have to sell the regional sports networks to buyer(s) acceptable to the Justice Department within 90 days of closing the Fox deal.

“American consumers have benefited from head-to-head competition between Disney and Fox’s cable sports programming that ultimately has prevented cable television subscription prices from rising even higher,” Assistant Attorney General Makan Delrahim, of the Justice Department’s Antitrust Division, said in a statement. “(Wednesday’s) settlement will ensure that sports programming competition is preserved in the local markets where Disney and Fox compete for cable and satellite distribution.”

Other assets in the proposed Fox-Disney deal include Fox’s movie and television studios, cable channels FX and National Geographic, Fox’s stake in Hulu and international TV properties. The deal doesn’t include the Fox broadcast network, the Fox News Channel,  the national sports channel FS1 and the Fox-owned TV stations.

The value of Fox’s regional sports networks to a buyer is enhanced by the long-term contracts they have with popular teams. The Braves’ contract with Fox, for example, runs until 2027.

* * * 

TODAY’S LEADOFF LINKS

> John Smoltz was roughed up in the opening round of the U.S. Senior Open. Read Steve Hummer's blog here.

> LeBron James shouldn't feel the need to chase more rings, Jeff Schultz writes.

> The Hawks will play a "waiting game" when the NBA's free-agency period opens Sunday. See Michael Cunningham's story here.

> The Braves made a series of roster moves Thursday, activating rookie outfielder Ronald Acuna from the disabled list and placing starting pitcher Brandon McCarthy on the DL. See David O'Brien's report here.