MLB objects to Diamond’s plan for keeping Atlanta Braves’ rights, likely endangering company’s viability
The objection from Major League Baseball comes just days before Diamond holds a confirmation hearing for its reorganization plan.
Major League Baseball has launched another salvo at Diamond Sports Group, the company responsible for operating 16 FanDuel Sports Network regional sports networks (RSNs) and the FanDuel Sports Network streaming service. On Friday, the league submitted a formal objection to Diamond’s plan to keep its contract with the Atlanta Braves to the bankruptcy court where Diamond has been working to emerge from Chapter 11 protections since March 2023.
Key Details:
- MLB says it still has not received enough information from Diamond to be assured it will actually leave bankruptcy.
- The Miami Marlins and St. Louis Cardinals have agreed to newly negotiated contracts with Diamond for 2025.
- A confirmation vote on Diamond’s wider reorg plan is slated for Nov. 14.
MLB’s attorneys carried out a reported plan to object to a continuance of the deal between Diamond and the Braves before the close of business on Friday. Diamond informed its MLB partner clubs over a month ago that it intended to drop all baseball contracts except that of the Braves as it tries to cobble together a cohesive bankruptcy reorganization plan.
In its filing, the league says that it’s still very skeptical about Diamond’s ability to do so and that it has not received enough information from the company to assuage concerns that it will soon be in financial trouble again if it does exit the shelter of Chapter 11 in the coming weeks.
“Based on the current inadequate record, the Braves and MLB have grave concerns that, if the plan is confirmed, there is a substantial likelihood that the debtors will find themselves once again in financial distress and/or bankruptcy court in the near future,” MLB told bankruptcy court Judge Christopher Lopez.
“Neither Braves nor MLB should be compelled to partner with a business that does not have a realistic roadmap to future operations,” the filing continued.
This could be the first step toward MLB objecting to Diamond’s full reorg plan, as well. Diamond is currently scheduled to hold a confirmation hearing for its roadmap for leaving bankruptcy on Nov. 14, but all throughout the company’s bankruptcy proceedings MLB has been dubious that it would ever re-emerge as a viable business.
Two other MLB teams — the Miami Marlins and St. Louis Cardinals — have both agreed to new deals with Diamond, but MLB did not object to those deals in court. It’s possible that those contracts have extra protections for the teams in question should Diamond go under in the future, but there’s nothing publicly available to confirm that, as such contracts are confidential.
The objection adds even more drama to Thursday’s confirmation hearing and serves as notice that there’s still no love lost between Diamond and MLB. Braves team officials have promised to be ready for the 2025 season regardless of what happens with Diamond, so there will be no disruption in delivering games to fans.
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