13 NBA Teams Just Lost Their Local TV ‘Allowance’—Here’s the Streaming Loophole That Could Change What You Pay to Watch Next Season
Main Street’s RSNs (now FanDuel Sports Network) reportedly stopped paying rights fees—so teams are scrambling for new local homes. The replacement could be OTA, DTC, or even free ad-supported streaming, but blackouts still loom.
By TheMurrow Editorial
May 1, 2026
Key Points
- 1Main Street/FanDuel Sports Network is winding down, and SBJ says it hasn’t made any 2026 NBA rights-fee payments to 13 teams.
- 2Expect a 2026-27 local TV “free-for-all”: OTA, team DTC subscriptions, or even streaming-only options—possibly short-term deals with exit clauses.
- 3Don’t assume League Pass fixes it: U.S. local games remain blacked out live, but new in-market streaming offers could be the real loophole.
The NBA didn’t announce a lockout. Nobody tore up a collective bargaining agreement on live television. Yet for 13 franchises, a familiar piece of the business model effectively vanished: the local TV check that shows up on schedule and quietly underwrites everything from arena staffing to offseason payroll planning.
Main Street Sports Group—the operator behind the FanDuel Sports Network regional sports networks (formerly Bally Sports)—is preparing to wind down operations around the end of the NBA regular season, according to reporting from ESPN. The timing matters. ESPN reports the regular season ends April 12, and the company told teams it expects to keep going through that point (and after the first round of the NHL playoffs) before stepping away. That exit frees teams to seek new local distribution next season, but it also leaves them staring at a blunt short-term problem: money they expected to arrive never did.
Sports Business Journal put it starkly: Main Street “has not made a single rights fee payment in 2026” to any of its 13 NBA partners. The crisis is immediate for owners and front offices, but it will feel personal for fans. When the RSN model fails, the first question is always the same: Where do I watch my team now?
“The RSN collapse isn’t just a media story. It’s a ‘where do I watch?’ story, and the answer may change by zip code.”
— — TheMurrow
What exactly happened—and why 13 teams suddenly “lost” their local TV payments
Local media rights are supposed to be the stable layer in the modern NBA economy: long-term contracts, predictable revenue, and distribution that reaches most households with a cable bundle. That stability is what’s breaking.
Multiple reports describe the wind-down of Main Street Sports Group. ESPN reported that teams were told Main Street is preparing to cease operations around the end of the NBA regular season. Sports Business Journal went further, describing a company message that it will “officially wind down” this month and that teams can seek new deals for next season.
Multiple reports describe the wind-down of Main Street Sports Group. ESPN reported that teams were told Main Street is preparing to cease operations around the end of the NBA regular season. Sports Business Journal went further, describing a company message that it will “officially wind down” this month and that teams can seek new deals for next season.
The core fact: payments stopped
The most consequential detail is not branding (Bally to FanDuel) or corporate structure. It’s cash flow.
SBJ reports Main Street has not made a single rights fee payment in 2026 to any of its 13 NBA partners. ESPN similarly reports that teams haven’t been paid their rights fees this year. For a franchise, local rights fees function like a dependable monthly deposit—until they don’t.
SBJ reports Main Street has not made a single rights fee payment in 2026 to any of its 13 NBA partners. ESPN similarly reports that teams haven’t been paid their rights fees this year. For a franchise, local rights fees function like a dependable monthly deposit—until they don’t.
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SBJ reports Main Street has not made a single rights fee payment in 2026 to any of its 13 NBA partners.
Which teams are affected
SBJ lists 13 NBA teams under Main Street’s umbrella:
- Atlanta Hawks
- Charlotte Hornets
- Cleveland Cavaliers
- Detroit Pistons
- Indiana Pacers
- Los Angeles Clippers
- Memphis Grizzlies
- Miami Heat
- Milwaukee Bucks
- Minnesota Timberwolves
- Oklahoma City Thunder
- Orlando Magic
- San Antonio Spurs
That list spans small markets and major ones, contending teams and rebuilding teams. The disruption isn’t confined to one corner of the league.
- Atlanta Hawks
- Charlotte Hornets
- Cleveland Cavaliers
- Detroit Pistons
- Indiana Pacers
- Los Angeles Clippers
- Memphis Grizzlies
- Miami Heat
- Milwaukee Bucks
- Minnesota Timberwolves
- Oklahoma City Thunder
- Orlando Magic
- San Antonio Spurs
That list spans small markets and major ones, contending teams and rebuilding teams. The disruption isn’t confined to one corner of the league.
A note on language: “allowance” vs. rights fees
Some headlines and social chatter have referred to an “allowance” teams lost. The authoritative reporting uses the precise term: local rights fees (or rights fee payments). The distinction is more than semantics. Rights fees are contractual obligations. Calling them an “allowance” makes them sound optional, like a perk that disappears when budgets tighten.
“Call it a rights fee, not an allowance. The difference is the difference between a perk and a contract.”
— — TheMurrow
The money question: can teams get any of it back—and what “up to 60%” really means
The first instinct is to ask whether teams are simply out the full amount they expected from local TV this year. SBJ suggests the answer could be “not entirely,” though the reimbursement route is neither simple nor guaranteed at 100 cents on the dollar.
The reported make-whole mechanism
According to SBJ, teams were told they may be reimbursed “some portion” of lost rights fees through a creditor-related process once dissolution agreements are signed. SBJ adds a key number: each team could receive up to roughly 60% of lost TV money through a “complex formula.”
That “up to” does a lot of work. It implies variability—team by team, contract by contract, and based on how the dissolution is structured and approved.
That “up to” does a lot of work. It implies variability—team by team, contract by contract, and based on how the dissolution is structured and approved.
Up to ~60%
SBJ reports each team could receive up to roughly 60% of lost TV money via a creditor-related process and a “complex formula.”
Why 60% matters
A partial recovery is still significant. For front offices, “some portion” can be the difference between trimming costs and holding steady. For the league, it changes the temperature of the moment: panic versus painful adjustment.
Yet the context matters:
- 0% paid in 2026 so far (per SBJ) means teams already absorbed months of missing revenue.
- Up to ~60% is not the same as 60% guaranteed.
- Any recovery arrives through a process that is, by definition, downstream of a collapse.
Yet the context matters:
- 0% paid in 2026 so far (per SBJ) means teams already absorbed months of missing revenue.
- Up to ~60% is not the same as 60% guaranteed.
- Any recovery arrives through a process that is, by definition, downstream of a collapse.
Fans won’t pay the bill, but they may pay differently
No reputable reporting suggests teams will simply tack a surcharge onto tickets to cover unpaid rights fees. The more realistic consumer impact is indirect: teams might pursue distribution models that trade high rights fees for wider reach—potentially cheaper or even free viewing supported by advertising, or paid direct-to-consumer subscriptions.
That trade-off is the real story for viewers: not whether owners get reimbursed, but how teams rebuild the pipeline from game to screen.
That trade-off is the real story for viewers: not whether owners get reimbursed, but how teams rebuild the pipeline from game to screen.
Key Insight
The most important fan-facing shift isn’t the accounting—it’s the distribution rebuild: OTA, DTC, or free ad-supported streaming could replace the cable RSN bundle.
A “free-for-all” for local NBA broadcasts in 2026-27
With Main Street preparing to exit, local NBA distribution for those 13 teams becomes an open market. SBJ describes it as a “free-for-all”: teams can begin signing new in-market deals for 2026-27.
Why the NBA is urging short-term deals
SBJ reports the NBA is urging teams toward one-year deals or agreements with one-year exit clauses. The reason is strategic: flexibility. The league wants teams positioned to move into an NBA-led, aggregated streaming solution if and when it launches.
That’s a subtle but important shift. For decades, local rights were a patchwork of separate regional deals. The league now appears to be preparing—at least at the advisory level—for a more centralized future.
That’s a subtle but important shift. For decades, local rights were a patchwork of separate regional deals. The league now appears to be preparing—at least at the advisory level—for a more centralized future.
Three immediate paths teams can take
SBJ identifies several “Plan B” options that teams are weighing now:
- Over-the-air (OTA) local broadcast
- Team-controlled or team-branded direct-to-consumer (DTC) subscription services
- Streaming-only distribution (which SBJ notes would be a first for NBA teams if any do it next season)
Each path solves a different problem. OTA boosts reach. DTC increases control and can reduce dependence on cable bundles. Streaming-only is the cleanest break from legacy TV, but it forces hard questions about price, access, and discoverability.
- Over-the-air (OTA) local broadcast
- Team-controlled or team-branded direct-to-consumer (DTC) subscription services
- Streaming-only distribution (which SBJ notes would be a first for NBA teams if any do it next season)
Each path solves a different problem. OTA boosts reach. DTC increases control and can reduce dependence on cable bundles. Streaming-only is the cleanest break from legacy TV, but it forces hard questions about price, access, and discoverability.
The viewing map is about to get messy
For fans, this is where the headache begins. A team’s games might move from a cable RSN to:
- a local broadcast station
- a team-run streaming app
- a third-party streaming platform hosting a team channel
That’s why your 2026-27 plan to “just get League Pass” may not solve local viewing. The distribution picture may become more fragmented before it becomes simpler.
- a local broadcast station
- a team-run streaming app
- a third-party streaming platform hosting a team channel
That’s why your 2026-27 plan to “just get League Pass” may not solve local viewing. The distribution picture may become more fragmented before it becomes simpler.
“The next season may bring more choice, but also more confusion—at least before the league consolidates.”
— — TheMurrow
The blackout reality: League Pass still won’t show your local team live
Many fans will hear “RSNs are collapsing” and assume the blackout era ends by default. NBA League Pass policy says otherwise.
The NBA’s official League Pass support page states that in the U.S., local team games and national games are blacked out live. Locally televised games become available on-demand after a delay (3 days).
The NBA’s official League Pass support page states that in the U.S., local team games and national games are blacked out live. Locally televised games become available on-demand after a delay (3 days).
3 days
The NBA’s League Pass policy says locally televised games become available on-demand after a delay of three days.
What that policy means in practice
Even if an RSN disappears, blackouts remain a function of who owns local rights and what the NBA permits under its distribution agreements. If a team signs a new local partner—whether OTA or streaming—that partner may still demand exclusivity in-market.
So the “blackout fix” most fans want is not automatic. It depends on how teams restructure rights going forward.
So the “blackout fix” most fans want is not automatic. It depends on how teams restructure rights going forward.
A more nuanced possibility: blackouts soften without disappearing
The more realistic near-term change is not that League Pass suddenly carries every local game live. The change is that the local rights holder might offer a streaming option that is easier to buy than a full cable package.
That’s where the “loophole” lives: not in League Pass, but in what replaces the RSN.
That’s where the “loophole” lives: not in League Pass, but in what replaces the RSN.
Editor’s Note
The “streaming loophole” here isn’t a League Pass hack—it’s the possibility that the next local rights holder sells in-market streaming directly, outside a cable bundle.
The streaming “loophole”: how fans could watch locally without cable
If you’re a fan in one of the 13 affected markets, the most practical question is straightforward: Will I still need cable to watch? The best sourced answer is: not necessarily.
SBJ reports teams are considering OTA broadcast, team DTC, and even streaming-only distribution. It also reports that vendors are already pitching teams with turnkey solutions.
SBJ reports teams are considering OTA broadcast, team DTC, and even streaming-only distribution. It also reports that vendors are already pitching teams with turnkey solutions.
The vendors positioning themselves as the new middlemen
SBJ names several tech/platform companies actively pursuing team deals:
- DAZN
- Victory+
- ViewLift
- Kiswe
The implication isn’t that any one vendor will “win.” It’s that teams can now shop for infrastructure the way they shop for arena Wi‑Fi or ticketing software: a service layer, not a lifetime marriage.
- DAZN
- Victory+
- ViewLift
- Kiswe
The implication isn’t that any one vendor will “win.” It’s that teams can now shop for infrastructure the way they shop for arena Wi‑Fi or ticketing software: a service layer, not a lifetime marriage.
The most fan-friendly idea: free, ad-supported streaming
SBJ highlights a notable detail: Victory+ has a free, ad-supported streaming model already used by some NHL teams (per SBJ). Free is a powerful word in a sports media economy trained to charge for everything.
A free ad-supported option would expand reach, especially among younger fans and cord-cutters. It would also signal a shift in priorities from maximizing rights fees to maximizing audience—at least for a transitional period.
A free ad-supported option would expand reach, especially among younger fans and cord-cutters. It would also signal a shift in priorities from maximizing rights fees to maximizing audience—at least for a transitional period.
The trade-offs fans should watch closely
Different distribution models come with different costs:
- OTA: often free to viewers, but may require an antenna and can vary by signal coverage.
- Paid DTC: convenient, but price sensitivity is real, and fans may stack subscriptions.
- Free ad-supported: accessible, but ad load and streaming quality become central issues.
None of these paths automatically fix blackouts. They can, however, make “local access” feel less punitive than the old cable-only RSN bundle.
- OTA: often free to viewers, but may require an antenna and can vary by signal coverage.
- Paid DTC: convenient, but price sensitivity is real, and fans may stack subscriptions.
- Free ad-supported: accessible, but ad load and streaming quality become central issues.
None of these paths automatically fix blackouts. They can, however, make “local access” feel less punitive than the old cable-only RSN bundle.
Local viewing options after the RSN model
Pros
- +OTA can be free and broad reach
- +DTC offers control and convenience
- +free ad-supported lowers the barrier for cord-cutters
Cons
- -OTA signal gaps
- -DTC subscription stacking and pricing
- -ad-supported streams raise ad load and quality concerns
What it means for the league: control, revenue, and a potential pivot point
The RSN system didn’t just carry games; it shaped the league’s power structure. Teams traded some control for guaranteed money. If that guarantee is gone—temporarily or permanently—control becomes negotiable again.
A league nudging teams toward optionality
SBJ’s reporting that the NBA is urging one-year deals or one-year exit clauses reads like institutional caution. The league appears to want an off-ramp: a way to consolidate distribution later without paying massive contract termination costs.
That doesn’t mean an aggregated NBA streaming product is imminent. It means the league wants to preserve strategic room to maneuver.
That doesn’t mean an aggregated NBA streaming product is imminent. It means the league wants to preserve strategic room to maneuver.
A tension between reach and revenue
Local rights fees were designed to be lucrative precisely because they were exclusive and bundled. Shifting games to OTA or free streaming could increase reach but reduce guaranteed payments.
From a fan’s perspective, reach matters. From an owner’s perspective, certainty matters. The coming year will test how teams balance those priorities when forced to choose quickly.
From a fan’s perspective, reach matters. From an owner’s perspective, certainty matters. The coming year will test how teams balance those priorities when forced to choose quickly.
Why this moment could change fan habits
Even a one-year experiment can reset expectations. If fans in a major market get used to watching games free over the air or via a simple app, returning to a high-priced cable bundle later becomes harder to sell.
That’s why 2026-27 may feel like a “bridge season” in local media—an interim fix that teaches the league what fans will actually do when given new options.
That’s why 2026-27 may feel like a “bridge season” in local media—an interim fix that teaches the league what fans will actually do when given new options.
Practical takeaways for fans in the 13 markets
The media business story is complicated; the viewer checklist doesn’t need to be.
What to do now (and what not to do)
- Don’t assume League Pass will solve local viewing. Blackouts remain in place for local games in the U.S., per the NBA’s League Pass policy.
- Expect your team to announce a new local partner for 2026-27. SBJ describes an open market, with teams able to seek new deals.
- Look for short-term deals. The NBA is urging one-year agreements or exit clauses, per SBJ, so the first replacement may not be the final one.
- Expect your team to announce a new local partner for 2026-27. SBJ describes an open market, with teams able to seek new deals.
- Look for short-term deals. The NBA is urging one-year agreements or exit clauses, per SBJ, so the first replacement may not be the final one.
Viewer checklist for 2026-27 announcements
- ✓Don’t assume League Pass fixes local viewing—blackouts still apply in the U.S.
- ✓Expect a new local partner for 2026-27 as teams seek replacements
- ✓Look for short-term deals or exit clauses; the first fix may not be the final one
What to watch for in announcements
When your team announces its next home, three details will matter more than branding:
1. Is there an in-market streaming option? (Team DTC or partner-hosted)
2. Is it free, paid, or bundled? (especially if ad-supported models appear)
3. Is it OTA, and if so, which station and what coverage area?
1. Is there an in-market streaming option? (Team DTC or partner-hosted)
2. Is it free, paid, or bundled? (especially if ad-supported models appear)
3. Is it OTA, and if so, which station and what coverage area?
Three details that matter most
- 1.Check whether there’s an in-market streaming option (team DTC or partner-hosted)
- 2.Confirm whether it’s free, paid, or bundled (watch for ad-supported models)
- 3.If it’s OTA, note the station and the real coverage area
A grounded prediction: more options, but more checking
The RSN era trained fans to learn one channel number and stop thinking about it. The post-RSN year will require more attention—at least temporarily. The upside is that “attention” may buy you something worth having: the ability to watch without paying for 200 channels you don’t want.
The uneasy upside of an RSN collapse
Nobody should romanticize a collapse that leaves contracted payments unpaid. Teams budget around those deals, and fans can get stranded midstream when distribution changes.
Still, the RSN unraveling exposes a truth the industry spent years avoiding: local sports is only as valuable as it is watchable. If the old system required cable bundles that fewer households want, then “guaranteed” money was always less guaranteed than it looked.
For the 13 affected teams—Hawks, Hornets, Cavaliers, Pistons, Pacers, Clippers, Grizzlies, Heat, Bucks, Timberwolves, Thunder, Magic, Spurs—the next move will be both financial and philosophical. Do they chase the highest short-term check, or do they prioritize reach and habit-building with streaming and OTA?
Fans don’t control that decision. Fans do control something else: where they spend their attention. The teams that make it easiest to watch will be the teams that stay closest to their communities—on screens, but also in meaning.
Still, the RSN unraveling exposes a truth the industry spent years avoiding: local sports is only as valuable as it is watchable. If the old system required cable bundles that fewer households want, then “guaranteed” money was always less guaranteed than it looked.
For the 13 affected teams—Hawks, Hornets, Cavaliers, Pistons, Pacers, Clippers, Grizzlies, Heat, Bucks, Timberwolves, Thunder, Magic, Spurs—the next move will be both financial and philosophical. Do they chase the highest short-term check, or do they prioritize reach and habit-building with streaming and OTA?
Fans don’t control that decision. Fans do control something else: where they spend their attention. The teams that make it easiest to watch will be the teams that stay closest to their communities—on screens, but also in meaning.
1) Which NBA teams are affected by Main Street Sports Group’s wind-down?
Sports Business Journal lists 13 teams: Atlanta Hawks, Charlotte Hornets, Cleveland Cavaliers, Detroit Pistons, Indiana Pacers, Los Angeles Clippers, Memphis Grizzlies, Miami Heat, Milwaukee Bucks, Minnesota Timberwolves, Oklahoma City Thunder, Orlando Magic, San Antonio Spurs. Those teams carried local games through Main Street’s RSNs (now branded FanDuel Sports Network, formerly Bally Sports).
2) Are teams really not getting paid for local TV rights in 2026?
Yes, according to Sports Business Journal: Main Street “has not made a single rights fee payment in 2026” to its 13 NBA partners. ESPN also reported teams haven’t been paid their rights fees this year. That’s the immediate financial shock driving teams to seek new distribution for next season.
3) When could Main Street stop operating the RSNs?
ESPN reported Main Street is preparing to cease operations around the end of the NBA regular season. ESPN’s reporting cites the season ending April 12, and the wind-down is expected after the first round of the NHL playoffs as well. Exact timing and logistics can vary, but teams are preparing for next-season alternatives now.
4) Will NBA League Pass start showing local games live if RSNs go away?
Not automatically. NBA League Pass’s official policy says local team games and national games are blacked out live in the U.S. and locally televised games become available on-demand after a delay (3 days). Blackouts change when rights and distribution terms change—not simply because an RSN collapses.
5) Could fans watch local games through a new streaming option instead of cable?
Yes, that’s one of the most realistic near-term outcomes. SBJ reports teams are considering team-controlled DTC subscriptions, OTA broadcasting, and even streaming-only distribution. SBJ also reports vendors such as DAZN, Victory+, ViewLift, and Kiswe are pitching teams now to run streaming services.
6) Is there a chance games become free to stream locally?
Possibly, depending on what deals teams choose. SBJ notes Victory+ and highlights a free, ad-supported streaming model used by some NHL teams. That doesn’t guarantee NBA adoption, but it shows a workable template if teams prioritize reach and simplicity over maximum rights fees.
7) Why is the NBA urging teams to sign one-year deals or exit clauses?
SBJ reports the NBA is urging short-term agreements so teams can retain flexibility and potentially roll into a future NBA-led, aggregated streaming solution. A long, restrictive local deal signed in a hurry could block that kind of league-wide plan later, so teams are being encouraged to keep their options open for 2026-27 and beyond.
T
About the Author
TheMurrow Editorial is a writer for TheMurrow covering sports.
Frequently Asked Questions
Which NBA teams are affected by Main Street Sports Group’s wind-down?
Sports Business Journal lists 13 teams: Atlanta Hawks, Charlotte Hornets, Cleveland Cavaliers, Detroit Pistons, Indiana Pacers, Los Angeles Clippers, Memphis Grizzlies, Miami Heat, Milwaukee Bucks, Minnesota Timberwolves, Oklahoma City Thunder, Orlando Magic, San Antonio Spurs.
Are teams really not getting paid for local TV rights in 2026?
Yes. SBJ reports Main Street “has not made a single rights fee payment in 2026” to its 13 NBA partners, and ESPN reports teams haven’t been paid rights fees this year.
When could Main Street stop operating the RSNs?
ESPN reported Main Street is preparing to cease operations around the end of the NBA regular season (reported to end April 12) and after the first round of the NHL playoffs.
Will NBA League Pass start showing local games live if RSNs go away?
Not automatically. The NBA’s League Pass policy says local team games and national games are blacked out live in the U.S., with locally televised games available on-demand after a 3-day delay.
Could fans watch local games through a new streaming option instead of cable?
Possibly. SBJ reports teams are considering team-controlled DTC, OTA broadcast, and even streaming-only distribution, with vendors like DAZN, Victory+, ViewLift, and Kiswe pitching solutions.
Is there a chance games become free to stream locally?
Possibly. SBJ notes Victory+ has a free, ad-supported streaming model used by some NHL teams—an available template if NBA teams prioritize reach.
