It's really just burning the biggest fans. I personally don't care about any sports, but if I did, I'd probably just find some shady streams online instead of trying to deal with all their restrictions, rules, and commercials. It really seems like they have no clue what people want, since they're unwilling to give it to them at any price. Smart business, IMO, would say, OK, you want no ads and no blackouts? $500 a year, or whatever. Figure out what it would cost and show people, so they understand how much they pay with their credit card and how much they pay with their time + eyeballs each month.
Edit: I'm sure the hardcore fans would take the more expensive package. You could even offer things like exclusive programming which would happen during times when commercials play for other lower-tier subscribers. Make it even cost twice what you're losing in ad revenue. The good will it would do for the brand, to even offer a no-commercial, no blackout, no contract, no BS option is not a zero-dollar value for the company either.