Diamond Sports Group Proposes Surrendering MLB Rights After 2024 in Latest Court Filing
Unprofitable clubs could be jettisoned by Diamond before the end of this year, but it wants the chance to give MLB broadcasting one last try.
Diamond Sports Group (DSG) is well aware that Major League Baseball is out of patience with regional sports network (RSN) broadcaster. The two sides have been at loggerheads all summer long, as Diamond’s bankruptcy case slowly moves its way through court hearing after hearing.
- A new filing from Diamond asks the judge in its bankruptcy case to overrule MLB’s objection to DSG’s request for more time.
- Diamond says in the filing it has proposed an agreement whereby profitable MLB games will stay on Bally Sports channels through 2024.
- The NBA recently agreed on a modified broadcasting agreement with Diamond through the end of the 2023-24 season, and the NHL is expected to do likewise.
Why Are Diamond and MLB Back in Court?
A new filing surfaced from DSG’s bankruptcy court case this week. It was a motion from Diamond, asking Judge Christopher Lopez to overrule MLB's motion from October in which the league asked the court to reject DSG’s request for a 60-day extension to turn in its Chapter 11 reorganization plan.
In the filing, Diamond says it is working on a comprehensive Cooperation Agreement, part of which specifies that it is willing to stop broadcasting MLB games after the end of the 2024 season. It also says that Diamond will work with individual teams to determine which of those clubs it can work out a satisfactory agreement with to broadcast their games and make a profit while doing it.
“In the absence of such an agreement with those particular clubs, the Debtors [DSG] intend to reject or otherwise agree to the termination of those clubs’ telecast rights agreements on or before December 31, 2023, which is materially before the start of the 2024 MLB season,” Diamond’s motion reads.
This is partially what MLB has been seeking, though it has made its position quite clear that it wants its broadcast rights back now, before the 2024 baseball season, not after. Still, it may accept DSG’s offer in order to prevent a scramble to find local broadcasting partners for the 11 teams the broadcaster currently holds the rights to; Bally Sports North’s contract with the Minnesota Twins expired following the end of the season, and as it was one of DSG’s most financially onerous contracts, it seems highly unlikely the two sides will renew their association.
Making Progress
Diamond’s filing also argues that, contrary to MLB’s statements, it has made material progress toward a comprehensive plan for resolving its over $8 billion debt load. It pointed to its recent agreement with the NBA to keep games on Bally Sports channels through the end of the 2023-24 season, and noted that it’s still in discussions with the NHL about a similar deal.
A hearing is set for Nov. 15 to determine whether Diamond will be granted the 60-day extension it has requested. The company’s debt reorganization plan was originally due at the end of September, and this month marks the end of the first 60-day extension it was granted. If allowed, the new extension would give the company through the end of January to turn in its Chapter 11 plan.
It’s looking increasingly likely that the NBA and NHL will play out their full 2023-24 seasons on Bally Sports linear channels and Bally Sports+. MLB may end up stuck with the broadcaster for another season as well, or at least the teams whose contracts with Diamond prove profitable to the company.
Bally Sports+
Bally Sports+ is a direct-to-consumer streaming service that offers live games for those who want access to your local Bally Sports RSN without subscribing to a cable or satellite package.