Game Time: Let's Play Ball

Regional sports networks (RSNs) are serious business. The local sports chieftains have become so powerful that more than one high-ranking cable operator has griped about not being able to afford the cost of carrying them. Meanwhile, an improving advertising marketplace has dollars piling up on the other side of the ledger.

The shining exemplar of the RSN model is the 10-year-old YES Network. The most profitable RSN in the country, YES last year took in roughly $502.3 million in affiliate revenue alone. It also generated the highest ad sales tally -- $68.7 million, according to SNL Kagan. The cleanup hitter that powers the YES lineup is baseball’s most valuable franchise, the New York Yankees. Despite sharing the DMA with the Mets and SportsNet NY, YES’ 2011 Yankees broadcasts were the most-watched on any RSN, averaging 319,000 homes per game. With three weeks to go before opening day, YES’ Yankees inventory is 60 percent sold out. “The market is really strong, and we’re seeing a huge response from automotive,” said Howard Levinson, svp of advertising sales at YES. “A lot of carmakers that raised their budgets in the wake of the tsunami have kept their spend just as high. And the companies that were directly affected by the disaster are back.”