Diamond Sports Group has filed a reorganization plan that calls for eliminating broadcast rights for all but one Major League Baseball team, putting 11 clubs at risk of losing their regional sports network contracts.

Diamond said in court that it will keep its contract with the Atlanta Braves and drop the Tampa Bay Rays and Detroit Tigers. Diamond is prepared to continue as a company without the other teams in its portfolio: the Los Angeles Angels, Cincinnati Reds, Miami Marlins, St. Louis Cardinals, Kansas City Royals, Milwaukee Brewers, Cleveland Guardians, Minnesota Twins and Texas Rangers.

The contracts of the Rangers, Guardians Twins and Brewers expired after the 2024 season. Five other teams – the Angels, Reds, Cardinals, Royals and Marlins – have entered into joint venture agreements, which would lead to legal action if Diamond rescinds its agreements.

A source at Diamond, the bankrupt operator of Bally Sports channels, said the company is still hopeful of agreeing new terms with the 11 other teams and has previously submitted proposals to each of them.

However, MLB has consistently questioned Diamond’s viability and has shown no willingness to negotiate new rights deals since the company underwent Chapter 11 reorganization nearly 19 months ago. A confirmation date has been set for November 14 and 15 in bankruptcy court in Houston. The deadline for objection is November 5. MLB attorney James Bromley said in court that the league was “blindsided” by the development, a point Diamond’s attorney refuted.

“We have no information about what is being done,” Bromley told The Athletic. “We have not had an opportunity to review and now we are in court and being asked to make our comments.”

Diamond entered into new contracts with lower rights fees with the NBA and NHL on August 23, shortly after agreeing to a new carriage deal with Comcast, putting Diamond channels at the most expensive tier. Diamond currently owns the rights to thirteen NBA teams and eight NHL teams, having recently dropped the Dallas Mavericks and New Orleans Pelicans from the NBA.

In a statement, a Diamond spokesperson wrote: “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. We have submitted proposals. to continue to engage and engage with our MLB team partners about future plans. We are confident that through our linear and digital offering we have created the best economic and fan-friendly engine for all our team partners.”

MLB has long-term plans to bring liner and direct-to-consumer rights under a national umbrella, viewing this as a long-term pivot to a cable model that has become increasingly volatile. Assuming none of the 11 teams in danger of being dropped by Diamond agree to new deals, MLB — which took over broadcasts for the San Diego Padres and Arizona Diamondbacks after they were cut last year — would technically own the rights can maintain almost half. the competition.

With local media accounting for a total of about 20% of team revenues, Diamond’s plans will create increasing financial uncertainty for teams — the kind that could once again impact offseason spending.