close
close

first Drop

Com TW NOw News 2024

Diamond Sports is dropping MLB teams from Bally Sports’ regional networks
news

Diamond Sports is dropping MLB teams from Bally Sports’ regional networks

A microphone with the Bally logo is used for a post-game interview following the Atlanta Braves’ 3-0 win over the Minnesota Twins at Truist Park on June 28, 2023 in Atlanta, Georgia.

Todd Kirkland | Getty Images

Major League Baseball is out of here.

Diamond Sports — the owner of regional sports networks under the Bally Sports brand — said Wednesday that it plans to drop all MLB teams from its channels except the Atlanta Braves.

Bally Sports has more than a dozen networks in the US. Diamond contacted all eleven teams on the air: the Cincinnati Reds, Cleveland Guardians, Detroit Tigers, Kansas City Royals, Los Angeles Angels, Miami Marlins, Milwaukee Brewers, Minnesota Twins, St. Louis Cardinals, Tampa Bay Rays and Texas Rangers – with amended, proposed contracts to determine MLB’s future on the networks.

A Diamond attorney made the comments Wednesday before a U.S. bankruptcy judge as part of an update on the company’s ongoing bankruptcy process and an effort to finalize a reorganization plan.

Some of those teams could see their contracts expire as early as this season, and some contracts will not be determined by the bankruptcy process, a Diamond spokesperson said.

The MLB regular season ended earlier this week and the postseason has already begun. Regional sports networks primarily broadcast regular season games.

“To be clear, rejecting these teams is not our preference,” diamond attorney Andrew Goldman said Wednesday. “Our preferred plan is to bring as many teams as possible into (the company’s) reorganized organization.”

He added that the company is still in negotiations with the individual clubs, but discussions with the MLB commissioner’s office have ended.

MLB’s attorney James Bromley told the bankruptcy judge on Wednesday that it is “unfortunate that we are being sandbagged in this way,” adding that “some of our clubs are once again being left out in the cold.” An MLB spokesperson declined to comment.

Goldman said Diamond warned the league about this outcome in August and noted it was a possibility if MLB rejected Diamond’s latest proposal.

Curveball

Milwaukee Brewers’ Sal Frelick hits a double during the fourth inning of Game 2 of a National League wild-card baseball game against the New York Mets on Tuesday, Oct. 1, 2024, in Milwaukee.

Morry Gash | AP

For decades, the regional sports networks were a lucrative business model for the teams and leagues, and networks paid high fees for aerial competitions. But they have suffered as cord-cutting has hit the pay-TV sector, leading to fewer subscribers.

This – and the heavy debt burden Diamond has faced since Sinclair acquired the company from Disney in 2019 – led the owner of the largest portfolio of regional sports networks to file for bankruptcy in March 2023.

Diamond’s lawyers have attempted to reset these duty payments to reflect so-called market rates. As a result, Diamond has turned down contracts, leaving a number of teams to find new TV and streaming homes.

In June, the NBA and NHL expressed concerns about the viability of Diamond’s business, especially ahead of the seasons starting this month.

A diamond lawyer said Wednesday was a “turning point” for the company as it was able to submit an amended reorganization plan. While Diamond is looking to exit bankruptcy protection, the possibility of winding down the business still exists. Still, Lawyers said the company promised the NBA and NHL that they would honor their contracts through the end of the season.

“Today marks an important step forward for Diamond with the filing of a baseline plan to enable us to emerge from bankruptcy as a viable, forward-thinking company before the end of the year,” a Diamond spokesperson said in a statement. “We have made proposals to and continue to engage with our MLB team partners on future plans. We believe that through our linear and digital offering, we have created the best economic and fan-friendly engine for all of our team partners.”

Diamond’s battle with MLB began before the filing.

Diamond has been pushing unsuccessfully for some time to retain streaming rights for all MLB teams that broadcast on its networks.

Last year, the San Diego Padres and Arizona Diamondbacks left their Bally Sports networks and the league instead began producing and distributing the games through pay-TV bundles and MLB TV.