Diamond Sports to Cut MLB Ties, Leaving Teams in Broadcasting Limbo

Diamond Sports Group, a subsidiary of Sinclair Broadcast Group, has announced plans to sever ties with the majority of Major League Baseball teams, with the exception of the Atlanta Braves. This decision, revealed on October 2, 2024, is part of the company's efforts to complete its bankruptcy restructuring by the end of the year.

The move could potentially impact broadcasting arrangements for approximately a dozen MLB teams as they approach the 2025 season, scheduled to begin in late March. Among the affected franchises are the Tampa Bay Rays, Detroit Tigers, Miami Marlins, Cincinnati Reds, Kansas City Royals, Los Angeles Angels, St. Louis Cardinals, and Milwaukee Brewers.

Diamond Sports' attorney, Andrew Goldman, stated during a bankruptcy court hearing in Houston, Texas, "The amended plan now puts the decision in the clubs' hands. If they can't reach an agreement with us, they can go ahead and make other plans for broadcast for next season."

This development comes as Diamond Sports grapples with the challenges faced by regional sports networks (RSNs) in recent years. The company, which operates under the Bally Sports brand, has been caught between expensive legacy contracts with sports teams and declining revenue from cable TV subscriptions due to the increasing trend of cord-cutting.

The restructuring plan includes negotiations for new deals with the affected teams, aiming to reduce payments to MLB clubs and gain additional streaming rights. This shift reflects the growing importance of streaming in the sports broadcasting landscape, a trend exemplified by Amazon.com's entry into sports broadcasting with its acquisition of streaming rights for NFL Thursday Night Football.

"At least some of our clubs are being left out in the cold once again."

It's worth noting that Diamond Sports' contracts do not include television rights for MLB playoff games, which are broadcast on national networks such as Fox, ESPN, and TBS. The MLB playoffs typically involve 12 teams competing in a tournament-style format, showcasing the best of the league's talent.

The company's new bankruptcy plan builds upon previous agreements with the National Basketball Association (NBA) and National Hockey League (NHL), major cable distributors, its owner Sinclair, and creditors owed over $8 billion. Diamond is also reportedly close to securing a new naming rights agreement and is in discussions with potential streaming rights partners, including Amazon.com.

As part of its contingency planning, Diamond has included a liquidation option in its bankruptcy plan. This would allow the company to continue broadcasting hockey and basketball games for the next season, even in a worst-case scenario, should the restructuring not be completed by the end of 2024.

The affected MLB teams, some with rich histories dating back to the 19th century, now face the challenge of securing new broadcast arrangements. For instance, the Cincinnati Reds, founded in 1881, claim to be the first all-professional baseball team, while the St. Louis Cardinals boast 11 World Series championships, second only to the New York Yankees.

As the broadcasting landscape continues to evolve, teams and networks alike must adapt to changing viewer habits and the increasing value of streaming rights. This situation underscores the complex relationship between sports franchises, broadcasters, and fans in the modern era of media consumption.