Earlier this week, a CNBC report indicated that local broadcasting giant Sinclair is considering splitting or spinning off some of its assets, including that of Tennis Channel, the 24/7 cable network dedicated to the sport.
Sinclair purchased the network for $350 million in 2016 and has since solidified its position as the preeminent destination for live tennis in the United States. Tennis Channel currently holds the rights to all major ATP and WTA events into the 2030s, and recently re-upped media rights deals for the Billie Jean King Cup and Davis Cup through 2027 and 2028 respectively. Outside of the sport’s four Grand Slams, Tennis Channel is the singular place to follow the sport, and will be for the foreseeable future.
That makes it a pretty attractive asset, especially as streaming services continue to battle for market share among fans of live sports. Tennis is a particularly attractive sport considering the year-round nature of its schedule, which can help reduce churn, and the fact that it attracts an affluent audience.
As such, it’s likely that Tennis Channel would find a number of interested parties looking to partner or purchase the asset were Sinclair to move forward with a split or spin. Below, in no particular order, we go through several potential landing spots that would make sense for Tennis Channel in such a scenario.
ESPN
With ESPN launching its much-ballyhooed direct-to-consumer platform next week, it finds itself as an obvious fit for Tennis Channel. While ESPN has been selective when it comes to bidding on sports rights recently — opting out of its $550 million per year MLB deal, and foregoing renewals with both Formula One and UFC — the network has also been strategic in acquiring new properties.
Of course, the headline transaction for ESPN is the recently announced NFL Media deal which will see the company own and operate NFL Network and other NFL-related assets in exchange for giving the league a 10% stake in ESPN. Aligning yourself with the biggest entertainment behemoth on the planet never seems like a poor strategy. But ESPN also inked another strategic media rights deal last week with WWE.
Similar to tennis, WWE offers year-round programming and a dedicated following that will subscribe to a streaming service regardless of where it is simply to access the content associated with that product. The Venn diagram of tennis fans and WWE fans likely has limited overlap (which is actually a good thing for ESPN should it explore a purchase or licensing agreement with Tennis Channel), but both assets are similar in a business sense: if you own them, everyone that is a tennis or wrestling fan will subscriber to your service, full stop.
If ESPN truly wants to become a “hub” for all live sports, finding a way to include Tennis Channel content on its app would be a sensible start.
TNT Sports/Discovery Global
With the TNT Sports brand preparing to be spun off from Warner Bros. Discovery into a new company dubbed Discovery Global, it needs to shore up its digital strategy. Once spun off, TNT Sports will be separated from HBO Max and plans to launch its own streaming service. However, as it stands, TNT Sports doesn’t have a marquee property that will drive subscriptions.
Sure, TNT has a little bit of MLB, a little bit of NHL, some college football and basketball here and there, a handful of NASCAR races, and a few weeks of March Madness every year. But those properties aren’t vital enough, nor focused enough on one type of sports fans, to attract year-round subscribers. Tennis Channel would change that.
As it stands, TNT Sports’ media rights portfolio is a churn nightmare. They don’t have any events that would keep people subscribed for more than a month or two at a time. Adding Tennis Channel content would give TNT’s forthcoming streaming service a baseline that it can fall back on. If TNT is where tennis fans can find all of the tennis, those fans will subscribe and never turn it off.
Of course, TNT Sports has already shown an interest in the sport, acquiring rights for the French Open and broadcasting the event for the first time this year. The production, as is typical with TNT-produced events, was met with rave reviews. Certainly that alone as built some brand equity among tennis fans, enough where TNT should at least explore an arrangement with Tennis Channel should one become available.
Apple TV+
Perhaps a bit of a dark horse, Tennis Channel could fit nicely into Apple TV+’s live sports strategy, insofar as the streamer currently has a live sports strategy at all. Apple has made clear that its preference is to own entire sports properties rather than simply being one of several broadcast partners associated with a given league. That’s why it reached an all-encompassing deal with MLS. Similarly, it’ll be the home of every single Formula One race starting next year. A deal with Tennis Channel would similarly fit that bill.
In terms of the sport’s “regular season,” Tennis Channel has it all. The sport also likely hits a demographic of consumers that Apple is keen to have on its platforms.
The question is just how dedicated Apple currently is to live sports. No doubt, tennis could help boost Apple TV+’s lagging subscriber numbers, likely more effectively than its current MLS deal. But whether the streamer has the appetite for another foray into live sports is still unclear.
Paramount+
Paramount Global’s new ownership made a splash earlier this week when it obtained live rights for the entire UFC portfolio for the next seven years in a deal worth over $7 billion. It’s now clear that David Ellison and Co. want to get into live sports, but with UFC now off the table, there really isn’t much out there for another few years.
That is, unless Tennis Channel becomes available. Should the network be split or spun from Sinclair, there would immediately be an entire sport (and its associate fan base) ripe for a deal when little else is out there. That’s a pretty advantageous spot to be if you’re Tennis Channel, and it could prove enticing for Paramount if it wants to make another big splash in live sports.
Paramount+ would receive the same benefits as any other streamer would in this scenario, subscriber boost and churn mitigation that is relatively unique among live sports properties. That’s part of why Paramount’s new ownership got into UFC, and they could double-down on that strategy should Tennis Channel become open for a deal.
About Drew Lerner
Drew Lerner is a staff writer for Awful Announcing and an aspiring cable subscriber. He previously covered sports media for Sports Media Watch. Future beat writer for the Oasis reunion tour.