Diamond Sports Group is once again causing turmoil in the sports broadcasting world after news that the company plans to divest itself of nearly all of the MLB teams in its portfolio unless more favorable contract terms can be negotiated. At the center of the action is the Atlanta Braves team, whose broadcast rights Diamond would like to retain. These developments, revealed during a court hearing, cast a shadow over the future of baseball broadcasts on US television.
Attorney Andrew Goldman, representing Diamond Sports Group, explained in a hearing that the company only wants to retain broadcast rights to the Atlanta Braves. All other existing contracts with Major League Baseball would be terminated under the plan. This drastic step causes uncertainty as the broadcast rights existed for twelve teams in 2024 – including the Detroit Tigers and the Tampa Bay Rays, whose contracts have already been rejected. The future of the broadcast is therefore uncertain as Diamond insists on renegotiation.
Some teams, including the Cleveland Guardians, Minnesota Twins, Texas Rangers and Milwaukee Brewers, whose contracts expire after the current season, could reach new agreements with Diamond. The Texas Rangers in particular are considering taking over the broadcasts themselves and selling the games separately from the MLB.
While legally not a formal part of the bankruptcy process, five other teams (Los Angeles Angels of Anaheim, Cincinnati Reds, St. Louis Cardinals, Kansas City Royals and Miami Marlins) are also indirectly affected in the current considerations. Diamond had previously abandoned a “joint venture” team, the San Diego Padres, by stopping payments, after which the team regained its rights.
The conflict between Diamond Sports Group and the MLB is well known. Differences regarding the company’s financial stability have emerged throughout the bankruptcy process, and a viable recovery strategy remains in question. A plan to do so, which has now been re-submitted to the court, could put an end to Diamond’s protracted bankruptcy phase, with November 14th and 15th proposed as the dates for the final decision. Diamond continues to hold contracts for NBA and NHL teams, but plans to eventually liquidate the company if the strategy fails.
In a statement after the hearing, Diamond emphasized the importance of this day in reshaping the company after bankruptcy, with the aim of creating the best economic and viewer-friendly solutions for the team partners.
