Alden Gonzalez, ESPN Writer Oct 2, 2024, 12:52pm ET
Close ESPN Baseball Reporter. He covered the LA Rams for ESPN from 2016-18 and the LA Angels for MLB.com from 2012-16.
Diamond Sports Group has filed a reorganization plan that calls for it to divest the broadcast rights to all but one Major League Baseball team, putting 11 clubs at risk of losing their regional sports network contracts.
Diamond said in court that she would keep her contract with the Atlanta Braves and would relinquish the Tampa Bay Rays and Detroit Tigers. Diamond is ready to move forward as a franchise without the other teams in its portfolio: the Los Angeles Angels, Cincinnati Reds, Miami Marlins and St. Louis Cardinals. Louis Cardinals, Kansas City Royals, Milwaukee Brewers, Cleveland Guardians, Minnesota Twins, and Texas Rangers.
The Rangers, Guardians Twins and Brewers’ contracts expire after the 2024 season. Five other teams — the Angels, Reds, Cardinals, Royals and Marlins — are on joint venture agreements, which could trigger legal action if Diamond drops their agreements.
A source at Diamond, the bankrupt operator of Bali Sports, said the company was still hoping to agree new terms with the other 11 teams, and had previously submitted proposals to each of them.
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However, MLB has consistently questioned Diamond’s viability and has not shown a willingness to negotiate new rights deals since the company entered Chapter 11 reorganization nearly 19 months ago. Confirmation dates are set for November 14-15 in bankruptcy court in Houston. The deadline for objection is November 5. MLB attorney James Bromley said in court that the league was “shocked” by the development, a point refuted by Diamond’s attorney.
“We have no information about what is going on,” Bromley was quoted as saying by The Athletic newspaper. “We have not had the opportunity to review and are now in court and being asked to provide our comments.”
Diamond secured new contracts consisting of lower rights fees with the NBA and NHL on August 23, shortly after agreeing to a new carriage agreement with Comcast, which placed Diamond’s channels at their most expensive. Diamond currently owns the rights to 13 NBA teams and eight NHL teams, having recently divested itself of the NBA’s Dallas Mavericks and New Orleans Pelicans.
In a statement, a Diamond spokesperson wrote: “Today marks an important step forward for Diamond by presenting a baseline plan to enable us to emerge from bankruptcy as a viable company and move forward before the end of the year. We have presented proposals for moving forward in discussions with our MLB team partners.” On plans moving forward, we firmly believe that through our linear and digital offerings, we have created the best economical and fan-friendly engine for all of our team partners.
MLB holds long-term plans to house liner rights and direct-to-consumer rights under a national umbrella, viewing them as a long-term pivot to a cable model that has become increasingly volatile. Assuming none of the 11 teams at risk of being dropped by Diamond agree to new deals, MLB — which took over the broadcast teams for the San Diego Padres and Arizona Diamondbacks after they were dropped last year — could technically retain the rights to nearly half the league.
Since local media makes up about 20% of team revenue overall, Diamond’s plans will create more financial uncertainty for teams — the kind that could once again impact offseason spending.
