Diamond Sports Group has proposed a significant shift in its business model by submitting a reorganization plan that would see it retain broadcasting rights for just one Major League Baseball (MLB) team, the Atlanta Braves. The plan involves cutting ties with 11 other MLB teams, including the Tampa Bay Rays and Detroit Tigers.
This move puts these teams at risk of losing their regional sports network (RSN) contracts as Diamond seeks to move forward without their inclusion. Among those affected are prominent clubs such as the Los Angeles Angels, Cincinnati Reds, and Miami Marlins.
Four of the affected teams—Texas Rangers, Cleveland Guardians, Minnesota Twins, and Milwaukee Brewers—had their broadcasting deals with Diamond set to expire after the 2024 season. Meanwhile, five other teams, including the Angels and Cardinals, are part of joint-venture agreements with Diamond. Should Diamond terminate these agreements, legal disputes could follow.
Despite the looming termination, Diamond remains hopeful of renegotiating terms and has submitted proposals to all 11 teams. However, MLB has been hesitant to engage in new negotiations, citing doubts about Diamond’s long-term viability since it entered Chapter 11 bankruptcy 19 months ago.
In court, tensions arose when MLB lawyer James Bromley stated that the league had been blindsided by Diamond’s reorganization plan. He claimed that MLB was not given the opportunity to review the proposal before it was presented in court, a point that Diamond’s attorney disputed.
The reorganization plan will be addressed in bankruptcy court in November, with a hearing set for the 14th and 15th. The deadline for objections to the plan is November 5, adding a sense of urgency to the negotiations.
Despite its troubles with MLB, Diamond has managed to secure new agreements with the NBA and NHL. In August, Diamond reached new deals with both leagues, though at lower rights fees than previously agreed upon. It also renewed a carriage deal with Comcast, placing Bally Sports channels on its most expensive tier.
Although these agreements have helped bolster Diamond’s financial standing, the future of its MLB broadcasting rights remains highly uncertain, especially with the potential loss of 11 team contracts.
MLB is reportedly exploring long-term plans to consolidate its broadcast rights, possibly through a national model that includes both linear and direct-to-consumer platforms.
If Diamond fails to reach new agreements with the 11 teams at risk of losing their RSN contracts, MLB could take control of those broadcasts, as it did with the San Diego Padres and Arizona Diamondbacks. The loss of local media revenue, which constitutes about 20% of team income, could lead to financial challenges for the affected teams and might impact their offseason spending and long-term planning.
