The Texas Rangers are about to announce the launch of their own regional sports network.

The Rangers’ current contract with Diamond Sports, the parent company of Bally Sports Southwest, expires after the final game of the season. The Texas Rangers want to explore the creation of their own regional sports network when the season and current contract with Bally Sports Southwest’s parent company expire on Sunday, according to a person familiar with the club’s negotiation position.

It would be the most ambitious option the Rangers could consider. Other options include enabling Major League Baseball to take over broadcasting and distribution, as well as returning to an agreement with Bally’s parent, Diamond Sports. While no deals are in place, an RSN model could give the Rangers the best chance of enhancing distribution and increasing long-term revenue. The Mavericks and Stars, whose seasons begin next month, have both abandoned Bally Sports Southwest to launch their own broadcast networks. According to Sports Business Journal on Thursday, citing unnamed sources, Diamond offered the Rangers a competitive rights fee to stay with Bally Sports Southwest, but the team declined. Rangers officials have not confirmed or denied the allegation. It is worth mentioning, however, that the Rangers’ current predicament effectively renders them a free agent. If an RSN model proves to be excessively aggressive, there is no reason they cannot return to the table later in the offseason.

There are still many details to be worked out before the Rangers can launch their own RSN, such as distribution agreements and advertising sales. However, a club-owned RSN may be able to optimize dissemination by being on linear cable, offering a streaming app, and possibly negotiating an over-the-air broadcast package.

“We have a five-state territory, 16.5 million households, and only 16% — a little over 2 million people — can watch our games,” Rangers president of business operations and COO Neil Leibman stated recently at a Sports Business Journal conference. “We have to fix that.”
While the territory’s breadth is a long-term advantage, it also generate challenges in terms of the number of deals that must be completed in order