In Arlington, Texas, a United States federal judge has approved a wind-down plan for Diamond Sports Group, potentially leading to a resolution of the broadcaster’s bankruptcy proceedings. An air of uncertainty still hovers over Diamond’s dealings with Major League Baseball (MLB) and two of its teams.
Diamond, known for running the Bally regional sports networks, has existing TV deals with 11 MLB teams, with two, the Cleveland Guardians and the World Series champion Texas Rangers, at risk of termination. If Diamond drops these teams, the clubs could regain their broadcast rights and either work with the league for broadcasting in 2024, or pursue an agreement with another broadcaster.
During a court hearing, a lawyer for Diamond expressed the company’s intention to broadcast most MLB teams in the following year. However, some teams are reportedly too costly to broadcast without concessions, including the Guardians and Rangers. Additionally, MLB has been pressing for clarity regarding 2024 broadcast agreements and revenues, with a hearing on this matter expected by Dec. 8.
Regarding specific financial details, the Guardians received $55 million in 2023, while the Rangers’ 20-year deal is valued at an average annual price of $111 million. Both teams and the league are seeking clarity on these matters in light of Diamond’s bankruptcy status.
Diamond Sports owns 19 regional sports networks across the U.S., broadcasting NBA, NHL, and MLB games, and its bankruptcy has caused uncertainty for the leagues and teams regarding their broadcasts and associated revenue. The recent court decision by Judge Christopher Lopez allows Diamond to continue airing NBA, NHL, and MLB games through September 2024, ending the baseball season, before potentially winding down its operations to pay creditors.
Two motions, including one brought by MLB, could potentially disrupt this agreement, according to Judge Lopez. Overall, the NBA and NHL have a clearer understanding of their future with Diamond compared to MLB. The NBA, for instance, has reached a term sheet agreement with Diamond for local broadcasts for 15 NBA teams through the 2023-24 season. Discussions with the NHL for a similar agreement are also underway.
In conclusion, while this approval signifies progress for Diamond Sports Group, uncertainties and potential disruptions persist as the company navigates its bankruptcy proceedings. These developments will undoubtedly continue to have ramifications for MLB and its associated teams. (Top photo of Game 2 of the 2023 World Series in Arlington, Texas: Erick W. Rasco / Sports Illustrated via Getty Images)
David Rodriguez brings the excitement of Major League Baseball to readers. With a deep appreciation for America’s pastime, he covers the latest MLB news, scores, and player achievements, keeping fans up to date with their favorite teams and players.
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