With a new ownership structure in place, YES Network (US) will rely on partners Sinclair Broadcast Group Inc. and Amazon.com Inc. to help secure affiliate rights deals.
The Walt Disney Co. completed its sale of the entertainment and sports network to Yankee Global Enterprises LLC, Sinclair and Amazon on Aug. 29 in a deal that valued YES Network at $3.47 billion. Speaking on a call about the deal, New York Yankees President Randy Levine and Sinclair President and CEO Chris Ripley said they would work on distribution and carriage deals with Amazon and the other invested parties, as well as YES management, led by President Jon Litner, whose contract has been renewed.
In order to gain approval for the larger transaction from the U.S. Department of Justice, Disney agreed to divest 22 regional sports networks, or RSNs, including YES.
Asked specifically if Sinclair would be or is already heading negotiations to restore YES and the other 21 RSNs, which have been dark to Dish Network Corp. platforms since July 26, Ripley said his company will be working in concert with the other parties as they establish new affiliate relationships going forward. YES was available to subscribers of DISH's virtual platform Sling TV.
Separately, Levine said changes could be forthcoming that enable Major League Baseball teams to sell their local digital rights. Rights are currently held by a club's attendant regional sports network.
Major League Baseball Commissioner Rob Manfred will announce digital rights changes soon, Levine said. MLB declined to comment.
Should the change take place, streaming rights might be secured by Google LLC or in the case of the Yankees, Amazon. This would add to the tech giant's sports offering — Amazon Prime is poised to stream the NFL's "Thursday Night Football" package for a third consecutive season, while it presents Premier League soccer and U.S. Open tennis abroad.
Under the new ownership structure, Levine said Yankee Global Enterprises, which previously held 20%, now controls 26% of YES. Sinclair holds 20%, with Amazon controlling 15%, with the right to purchase more. The remaining 39% is in the hands of RedBird Capital Partners LLC, funds managed by Blackstone Group Inc.'s Tactical Opportunities business and Mubadala Capital, with each controlling a similar stake, according to Levine.
The latter has ties to Manchester City soccer club, the partner of Yankee Global Enterprises in New York City Football Club, the Major League Soccer team whose matches are televised by YES and plays its home games at Yankee Stadium.
