MLB Asks Bankruptcy Judge to Deny Deadline Extension Request from Diamond Sports Group
MLB Asks Bankruptcy Judge to Deny Deadline Extension Request from Diamond Sports Group
The league says that the longer Diamond has to work out a reorganization plan, the less likely it is to actually present one.
The introduction of a pitch clock at the start of the 2023 season was a big indication that Major League Baseball wanted to speed things up on the field. Haste is also on the mind of league executives off the field, particularly when it comes to the ending of MLB’s relationship with Diamond Sports Group, the company that operates 19 Bally Sports regional sports networks (RSNs).
- The Arizona Diamondbacks and San Diego Padres have already left Bally Sports RSNs.
- MLB says Diamond has had more than enough time to submit a reorganization plan.
- The Minnesota Twins see their deal with Bally Sports expire when the 2023 World Series ends.
Representatives for MLB were in bankruptcy court this week to express their frustrations in a more official capacity. According to Sportico, the league filed a motion with Judge Christopher Lopez, asking the court to deny Diamond’s recent motion to extend its deadline for filing a reorganization plan for another 60 days.
Three Strikes, You’re Out
The original deadline for DSG to turn in its plan for reorganizing a debt load of nearly $9 billion was Sept. 29. That day came and went with nothing but a request for more time coming from Diamond, and the way MLB sees it, the company is simply stalling and hoping for a miracle.
“The debtors had the entirety of the 2023 baseball season to get their business back in order and have failed to do so,” MLB’s motion reads. “There is no reason to believe that the debtors will finally figure out a path forward, now that the NBA and NHL seasons are beginning.”
The league acknowledged this summer that it had received the vast majority of fee payments it was owed by Diamond during the course of the 2023 season, but its most recent filing also reckons the company’s cash on hand has dwindled to just $21.8 million. The league also filed a motion requesting Judge Lopez to compel an immediate decision from Diamond regarding the 12 MLB teams it still holds the rights to. That could become 11 in short order, as the Minnesota Twins see their contract to appear on Bally Sports North expire when the 2023 World Series ends.
More Than One Ball in The Air
It may be MLB who’s crowing the loudest at the moment, but if anything it’s the NHL and NBA that have the greatest cause for concern with Diamond’s immediate future. Both leagues are set to start their regular seasons this month, and a large portion of teams from both leagues are currently covered by Bally Sports channels (15 NBA teams, 12 NHL).
Diamond has already asked the leagues to take 20% less in rights fee payments for those teams this season as part of its evolving strategy to emerge from bankruptcy. That option isn’t likely to be too palatable, but it may be accepted in order to avoid having to find new broadcast partners for those NBA and NHL teams at the last minute. Unlike most MLB teams, NHL and NBA teams that appear on Bally Sports channels are also available to stream on Bally Sports+.
Judge Lopez has not indulged in MLB’s crusade to get its teams away from Bally Sports RSNs often during the bankruptcy process, but this motion could change that. If granted, DSG would have five days to present its plans for making payments to MLB teams on time this season. If it can’t, the league may get what it’s been after since early this year: the in-market broadcasting rights to all of its clubs.
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.