There are a lot of issues here.
First, the RSN model is broken. That has been discussed. But the local team, particularly in baseball, remains the highest rated single thing on television every night in most places. Yes, that is "only" X-number. Find me something that does better and we can talk.
- Sinclair, which is a horrible company, 100% anti-consumer, bought out (indirectly) Fox's soon-to-be toxic asset at exactly its peak. What geniuses are running Fox. They get out of the RSN business at exactly the right time; they sell off a vault full of reruns to Disney to fuel its money-bleeding streaming dead end, and they sit back and watch the cash roll in. IF (largest word in the language) someone ever figures out how to make money at streaming, Fox can easily launch its own service, or sell its highly desired material (Fox News, Fox Sports) to someone else, without the years (decades?) of losses.
- MLB made a huge mistake with mlb.tv. Very shortsighted. It simply cannot be easier and cheaper to watch other place's teams at the exclusion of your own. FIRST paying your fair share for local baseball must be a predicate to gaining access to other teams.
- All of the "gambling is going to save us" crowd did not know a thing about it. There are too many gambling shows, no one of them is really significant. And the results are not copyrightable.
- For all the "I don't like my local team, I just watch the _ on mlb.tv" crowd, well, guess what. The costs of production and all of that is fully covered by the local market. They are just selling you the games as gravy. It is a, fairly insignificant, amount of money. Extra. Without the local RSN doing the game in the first place, they won't be any game produced for them to sell to you.
- Local RSN money is upwards of 40% of team revenue. It is THE reason one place is a "small market" or a "large market". Live gate has nothing to do with it. Not really. It is the RSN money. That puts the big teams and the small teams at odds with one another on what to do. It will not be pretty.