MLB Calls Bally Sports Channels ‘Undependable’ Amidst Carriage Dispute Between Diamond Sports Group and Comcast
The latest salvo from MLB is another indication that the league is eager to be quits with Diamond as a broadcasting partner.
Anyone following the Diamond Sports Group bankruptcy case since the company filed for Chapter 11 protections in March 2023 knows that its relationship with Major League Baseball is not an amicable one. The MLB is anxious to get its teams away from Bally Sports regional sports networks (RSNs), as cord-cutting has made the entire RSN model highly unstable. Diamond’s reorganization plan for emerging from bankruptcy as a going concern hinges on its ability to make a new carriage deal with Comcast, but the last deal between the two lapsed without an extension or new agreement being reached. Now, Bally Sports channels are unavailable for Comcast cable subscribers, and MLB lawyers joined with NBA and NHL representatives at a virtual bankruptcy court hearing this week to express their concerns with the way Diamond is proceeding.
Key Details:
- MLB’s reps say Diamond has been “an undependable partner,” and has asked for a June 18 confirmation hearing to be postponed.
- NBA and NHL attorneys expressed concern that they were heading toward another regular season with little clarity on Diamond’s plans.
- Diamond pointed to carriage deals with Charter and DIRECTV as reasons for optimism.
Subscribers to Comcast’s Xfinity TV service have been without the collection of 18 Bally Sports channels since the beginning of May. The two sides have engaged in a public war of words about the dispute. Both companies have blamed the other and urged consumers to implore the rival corporation to accede to its respective demands.
The MLB, however, is out of patience. Attorney James Bromley said MLB may have to create new broadcasting arrangements for the 12 teams available on Bally Sports RSNs if they remain absent from Comcast airwaves much longer, and called Diamond “an unreliable partner.” During the 2023 season, MLB had to take over broadcast production duties for the Arizona Diamondbacks and San Diego Padres after their contracts were rejected by Diamond.
“I think it’s important, from the perspective of Major League Baseball, to understand exactly how devastating it is to lose carriage on Comcast,” Bromley said. “The fact that we don’t have Comcast broadcasting Major League Baseball is a serious thing … And we have multiple teams who are facing substantial problems … because their fans are unable to watch these games.
“It is highly likely that the loss of carriage of the debtors’ broadcasts by Comcast, and the resulting loss of licensing fees from Comcast, will render [Diamond’s reorganization] plan uncomfortable,” the league continued, “thereby wasting time and estate resources to the detriment of MLB, the signatory clubs, and other interested parties.”
Diamond is due back in court on June 18 for a confirmation vote on its bankruptcy reorg plan. MLB asked for that meeting to be postponed, and representatives of the NBA and NHL voiced similar concerns that without a carriage contract with Comcast, there’s simply too much uncertainty for them to approve of Diamond exiting bankruptcy.
“It is imperative that we have certainty, one way or the other, by June 18,” NBA lawyer Vincent Indelicato said. “The NBA has been accommodating to the debtors to date, but we simply cannot afford to have next season be disrupted.”
The NHL’s attorney echoed the same concerns when it comes to the further delays in determining DSG’s financial situation.
“As of today, the NHL and its clubs remain in the same uncertain day to day position vis a vis their broadcasting arrangements with the debtors,” said NHL attorney Shana Elberg. “And as you heard the NBA say, we similarly cannot head into another offseason in that position.”
Currently, neither the NHL nor the NBA have a long-term deal in place with Diamond. The two leagues are highly invested in the results of its carriage contract with Comcast as Diamond’s own court filings have revealed that 81% of its total audience comes from Charter, Comcast, and DIRECTV customers. Without the substantial audience that Comcast provides, the leagues cannot rely on Bally Sports channels as broadcast partners.
How Did Diamond Respond to Criticisms?
For its part, Diamond tried to look on the bright side during the virtual hearing. It pointed to new, multi-year carriage deals with Charter Communications and DIRECTV that have been hashed out in recent months, and indicated it was near an agreement to rename the Bally Sports channels; Diamond’s naming rights deal with Bally expires after the 2024 MLB season.
Judge Christopher Lopez declined MLB’s request to reschedule the June 18 confirmation hearing and maintained a cautiously optimistic stance. His position is that Diamond has accomplished plenty and that it deserves to try and play out its endgame, though he acknowledged concerns by its partner leagues as valid.
“I get where the teams are, I understand it all,” Lopez said. “I read everything…I get it all. And I saw it all there, DSG and let’s just continue down the path. There’s been a lot of good work that’s done. And I don’t want to lose sight of it. And a lot of good updates that have happened over the course of this case. But there still are some serious questions that need to be answered. And let’s just continue to see where we get on.”
There’s a little more than a month until Diamond and its creditors are due back in court for a confirmation hearing on its reorg plan. If it wins that vote, it will be the company’s most important step taken toward exiting bankruptcy. But getting approval for that plan hinges on Diamond’s ability to make a new carriage deal with Comcast, and if it doesn’t it can expect virulent opposition from MLB, as well as potentially the NBA and NHL.
Bally Sports+
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