Diamond Sports Group Delays of Hearing for Bankruptcy Reorganization Plan as MLB Commissioner Fumes
Diamond Sports Group Delays of Hearing for Bankruptcy Reorganization Plan as MLB Commissioner Fumes
Saying there’s ‘not much good about Diamond,’ commissioner Rob Manfred continued his campaign of derogatory rhetoric about the company this week.
Diamond Sports Group was back in court this week, and it had very little to offer in the way of encouragement for anyone hoping that its extended bankruptcy proceedings were about to come to an end. Instead, the company was seeking to delay the end of those proceedings even further. Diamond requested a delay for its upcoming June 18 hearing, at which its bankruptcy reorganization plan is due to be put up for a confirmation vote by its creditors. Major League Baseball is one such creditor, and — as has been the case throughout Diamond’s bankruptcy case — the league is quite upset with the broadcaster for creating yet another slowdown.
Key Details:
- The confirmation hearing has been shifted from June 18 to July 29.
- Diamond is still seeking a new carriage deal with Comcast.
- Without that deal in place, MLB says Diamond’s reorg plan is untenable.
Diamond owns and operates a collection of 18 Bally Sports regional sports networks (RSNs), and has been under Chapter 11 protections since March 2023. The company had hoped to present its reorganization plan to creditors for a confirmation vote on June 18, but this week it requested that the deadline be bumped until July 29.
The company also moved the deadline for objecting to the plan from June 5 to July 18. MLB may be considering a formal objection to the plan, but speaking at the end of a round of owners’ meetings on Thursday, commissioner Rob Manfred said that he’s hesitant to commit to an objection because he doesn’t have enough information on what he’d be objecting to.
“It’s hard to comment on whether we’re going to object or not, because there is no [reorganization] plan at this point, if you think about it,” Manfred said. “Their whole plan is ‘we’re going to get deals with distributors.’ We know they don’t have one [major provider]. And it’s ‘we’re going to continue with the leagues.’ They don’t have a deal with the NBA. They don’t have a deal with the NHL. And they don’t have a deal with us …There’s not much good about Diamond, actually, right now. They remain bankrupt, in case any of you have missed that.”
This is just the latest salvo aimed at Diamond by MLB officials and representatives. Earlier this month, the league’s lawyers called Bally Sports channels “undependable,” and resentment has only been growing. NBA and NHL executives have also questioned Diamond’s next steps, though neither has done so quite as vehemently as MLB.
How Did Diamond Get Here?
In late February, things were looking quite rosy for Diamond Sports Group. It had locked down hundreds of millions in financing, settled a lawsuit with its parent company Sinclair Broadcasting Group, and secured the promise of an investment from Amazon if it emerged from bankruptcy.
The hit parade continued for Diamond as it agreed to new carriage deals with Charter Communications and DIRECTV. But negotiations with Comcast have not gone as well for the broadcaster, and Bally Sports channels went dark on Comcast airwaves as of April 30 thanks to the failure of the two sides to reach a new carriage deal.
Spotico reports that the two sides have not resumed formal negotiations since, and MLB officials don’t think Diamond’s reorg plan is workable without a Comcast deal. Together, Charter, Comcast, and DIRECTV account for 81% of the total Bally Sports audience. Its request for a delay is likely intended to give Diamond more time to seek a new contract with Comcast, but if it’s not successful MLB could become an even bigger antagonist of the company than it already is.
Manfred also spoke about MLB’s media strategy, touching on his desire to transform the league’s national media offerings in the long term. Without clarity on the Diamond situation, it’s hard to start implementing any big plans, but Manfred is continuing to speak with owners about the possibilities.
“There is a continuing conversation about a national media strategy, a national control of rights,” Manfred said. “Right now, we’re really focused on the strategic part, how we respond to the changes in the local media environment in a way that increases our reach and fan access to games. We’d like to get into a model … where there is a frictionless opportunity to watch the game you want to watch.”
A no-blackout streaming platform that allows in-market fans to watch their favorite team’s games all season would be a key part of that model, and Manfred has made clear in the past that he wants to create such a service. But any plans to do so would require the digital rights to teams that are now in the hands of Diamond, and without further clarity on what that company is going to do in the long term, Manfred can’t move forward with grandiose plans of his own.
Judge Christopher Lopez acknowledged the concerns of MLB officials but also continued to allow Diamond the room it feels it needs to wrap up its bankruptcy proceedings once and for all.
“Bankruptcy is bankruptcy. It goes at its own pace,” the judge intoned.
Bally Sports+
Bally Sports+ was a direct-to-consumer streaming service that provided live, in-market games without requiring a cable or satellite subscription. It allowed fans to watch their local Bally Sports regional sports network (RSN) without a traditional TV package.