LAS VEGAS (KLAS) — The company that operates AT&T SportsNet, which televises Golden Knights games, is planning to get out of the regional sports network business.
Warner Bros. Discover is telling teams it will leave the industry in the next several weeks, according to a story Friday in the Sports Business Journal.
The company runs AT&T SportsNet channels in Denver, Houston and Pittsburgh and has a minority stake in Root Sports out of Seattle. Its message to teams is that they have until March 31 to reach an agreement to take back their TV rights, according to the Sports Business Journal story.
If the regional networks can’t reach a deal with teams, the channels will move to Chapter 7 liquidation filing, the story said.
In addition to the Golden Knights, Warner Bros. Discovery has rights deals with nine other major sports teams across its four networks: Astros, Mariners, Pirates and Rockies in Major League Baseball; the Blazers, Jazz and Rockets in the National Basketball Association; and the Penguins and Kraken in the National Hockey League.
The story also said the company provided a statement, saying it will “continue to engage in private conversations with our partners as we seek to identify reasonable and constructive solutions.”
The company in a letter informed the leagues and teams Friday afternoon of its “plans to divest their interest” in the four regional sports networks, the story said.
The Golden Knights did not immediately respond to a request seeking comment. The Sports Business Journal story said the team makes about $13 million annually from AT&T Rocky Mountain for broadcast rights.
In the letters, the company told teams it will be allowed to use the same production staff and equipment to continue producing games.