Mariners’ Gamble on Majority Stake In ROOT Sports Northwest
In a deal announced on Tuesday, the Seattle Mariners will become the majority stakeholder in ROOT Sports Northwest, the regional sports network (RSN) owned by DirecTV. ROOT Sports NW currently broadcasts Mariners games under a 1o-year rights fee contract that pays the Mariners $45 million per year. That agreement gave the Mariners an opt-out clause after the 2015 season, which led many to speculate that the team would look to match the mega deals recently struck by their American League West rivals.
In 2011, the Angels inked a new local TV deal with regional sports network Fox Sports West, valued at $2.5 billion over 17 years, plus a 25% equity stake in the RSN. The Texas Rangers kicked off this new frenzy in late 2010 with its 20-year/$1.7 billion deal with Fox Sports Southwest. After the Angels’ new deal, the Houston Astros cashed in, joining with the Houston Rockets to create a new RSN with Comcast, called Comcast SportsNet Houston. The Astros will receive $80 million a year for the next 20 years, plus income generated from its 45% equity stake.
Instead, the Mariners are headed in a different and somewhat surprising direction. The new deal — estimated by Forbes at $2 billion over 17 years — will give the Mariners broader control over the RSN’s programming. But that control may come with some financial uncertainty.