Broadcast Uncertainty May Impact Texas Rangers Free-Agent Spending

The Texas Rangers may get their TV rights back sooner rather than 2025, but how will that impact the financial bottom line?

With the possibility that the Texas Rangers could get their broadcast rights back for the 2024 season, does that mean the club may have to recalibrate its free-agency spending this offseason.

By the end of the calendar year, the Rangers should know if Diamond Sports Group, which owns their television rights through Bally Sports, will release them before this coming season or keep them for 2024 and release for 2025.

The implications, depending upon how the deal goes down, could be significant for the Rangers’ bottom line. Texas is rumored to be in on big-ticket free agents like Shohei Ohtani and Josh Hader, as well trying to bring back Jordan Montgomery. 

The World Series champion Rangers are projected to have at least a $222 million payroll in 2024 / © Jerome Miron-USA TODAY Sports

The Rangers signed a 20-year deal with Fox Sports Southwest in 2011, a deal that DSG inherited when it bought the Fox Regional Networks. That contract pays the Rangers $111 million per year for their TV rights.

With DSG still in bankruptcy, it had agreed to resolve all remaining financial issues for 2024 and allow teams to reclaim their rights in 2025.

Earlier this month, The Athletic reported that DSG could return them sooner, depending upon the how the judge in the case rules. That ruling could come as soon as Dec. 8.

It’s not clear if dropping the rights means dropping the financial commitment, too, as the Rangers are one of the creditors in the bankruptcy case.

But, at some point, the Rangers will get their TV rights back and it could impact the the bottom line, especially with so many long-term contracts on the ledger already.

The Rangers have $166.75 million committed to eight players going into 2024, per Spotrac.com. Rolling in arbitration estimates, pre-arbitration estimates, benefit estimates and minor-league salary estimates, the defending World Series champs are projected to have a $222 million payroll for total tax allocation.

The first 2024 tax threshold is $237 million. That’s before the Rangers pursue any free agents. Plus, Texas may not have clarity until well after the winter meetings, which are set for Dec. 4-7 in Nashville.

One team involved in the suit has already gotten its rights back — the Minnesota Twins. But the Twins’ situation is different because their contract with DSG was up after the season.

The Rangers will get their rights back sooner or later. How that impacts their payroll remains to be seen.

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