The Diamond Sports Group saga took another turn yesterday when the broadcasting company announced a restructuring agreement that’d see debt holders invest $450MM to keep the company afloat. As part of the deal, Amazon would receive streaming rights for the NBA, NHL and MLB teams for which Diamond currently holds those rights.
While there’s an agreement in place between Diamond and Amazon, it’s worth emphasizing that the plan can’t become official without approval from the bankruptcy court. That’ll take time as the court and Diamond’s creditors sort through the details.
Evan Drellich and Mike Vorkunov of the Athletic report that Amazon would pay $115MM, with an additional $50MM investment possible. While that’d entitle them to streaming rights for every NBA and NHL team that contracts with Diamond, it’s only applicable to five MLB teams. Diamond has streaming rights for the Royals, Tigers, Marlins, Brewers and Rays. Those clubs would still be broadcast on cable on Diamond’s Bally Sports networks, but in-market streaming access would move to Prime Video. MLB has opposed selling additional streaming rights to Diamond, but Alden González of ESPN reports that Amazon’s involvement is not conditional on further streaming acquisitions.
Until this week, it had seemed likely Diamond would abandon the regional sports network entirely after the 2024 MLB season. The agreement with Amazon represents a significant shift and leaves a few MLB teams in a state of continued uncertainty.
Diamond holds broadcasting deals with 11 MLB teams. The corporation’s attorney said yesterday that nine of those clubs — the Angels, Braves, Brewers, Cardinals, Marlins, Rays, Reds, Royals and Tigers — will be paid in full for the ’24 campaign (relayed by González). The company is seeking to renegotiate its deals with two others, the Guardians and Rangers, at lesser fees. It is also in discussions with the Twins, whose previous contract with Diamond expired at the end of last season — leaving them as something of a broadcasting free agent.
The Diamond attorney informed the court yesterday that the company has offered terms to each of the Cleveland, Texas and Minnesota organizations to continue broadcasting their games in 2024 (via The Athletic). He said the company expects answers from all three franchises by the start of February. A hearing scheduled for tomorrow morning has been postponed indefinitely so the sides can review the framework of the streaming deal, per Drellich and Vorkunov.
None of the Rangers, Guardians or Twins are obligated to accept reduced rights fees. If they decline, however, it seems likely Diamond will drop the Texas and Cleveland contracts and leave Minnesota without a deal. Diamond already showed a willingness to abandon unprofitable terms during the 2023 season, when it dropped agreements with the Padres and Diamondbacks.
That leaves Texas, Cleveland and Minnesota without a ton of leverage. Diamond’s attorney said one of the organizations (without specifying which) plans to negotiate a deal that would even extend beyond next season, as relayed by The Athletic.
The uncertainty has been reflected in those franchises’ activity, or lack thereof, in free agency. Minnesota declared they were cutting payroll at the start of the offseason. They allowed Sonny Gray and Kenta Maeda to depart and have thus far signed one free agent to a major league contract. That was a $950K guarantee for reliever Josh Staumont, who is rehabbing from thoracic outlet surgery.
Texas is coming off a World Series that’d normally spur a team to act aggressively in the offseason. Instead, GM Chris Young indicated they wouldn’t be as active as they’d been in previous winters. The Rangers have signed a few free agents — most notably a two-year, $22MM pact for Tyler Mahle — but they haven’t splurged at the top of the class. The broadcasting situation is commonly cited as a reason they haven’t brought back Jordan Montgomery, who remains on the open market.
Cleveland is never a big spender, so the lack of activity on their end is characteristic. Still, the club is seemingly operating with limited flexibility. They’ve taken on some salary in the Scott Barlow trade and signed Austin Hedges to a $4MM free agent deal.
Whether all those teams can reach a new contract with Diamond should become clear in the next few weeks. Even if they stay on the networks for next season (and potentially beyond), it’d come with some kind of hit to their revenues. Paul Hoynes of Cleveland.com reported the Guardians made $55MM in local rights fees last season. It was a similar amount for Minnesota, whom Phil Miller of the Minneapolis Star-Tribune reports received $54MM in 2023. Evan Grant of the Dallas Morning News wrote yesterday the Rangers’ deal has paid around $111MM annually.
If any of those teams don’t reach an agreement, they’d join a trio of clubs likely to operate without an RSN deal this year. MLB stepped in to handle in-market broadcasting for Arizona and San Diego last season. While MLB subsidized a portion of the D-Backs and Padres deals last season, commissioner Rob Manfred has made clear they won’t do so next season. Allowing MLB to handle the broadcasts would likely be less profitable for the teams than if they land a new deal with Diamond.
It seems MLB is also going to handle broadcasts for the Rockies, whose contract was dropped by AT&T SportsNet Rocky Mountain at the end of 2023. Patrick Saunders of the Denver Post reported this month that MLB is expected to stream Colorado games in-market on its MLB.tv platform, as it is doing with the D-Backs and Padres. The Rockies made roughly $57MM off their broadcasting deal a year ago, Saunders adds.
Twins need to figure this out so we can finally sign some players…
Bankruptcy and bankruptcy judges move at their own pace, which typically is glacial.
Manfred needs to step up and be a man , not a wimp,, to fix this gross inequity …specifically with Cleveland.
Definition of the term used:
“a weak and cowardly or unadventurous person”
But why? Teams like Cleveland just put it back into their wallets anyway. If they spent more on players, maybe I’d feel differently. But it’s hard for me to feel sympathy for teams that pocket most of the profits instead of putting it back into the team.
Not every team is a large market pulling down triple digits in local TV money. Two thirds of baseball teams are not and have to get by on a whole lot less and potentially nothing at all with this Bally’s fiasco. That’s the income disparity that is getting worse and worse and ruining the game.
Plus, no business is going to run at a deficit. These guys didn’t become billionaires by doing that, and their personal wealth has nothing to do with the operating incone of the ballclub.
Amazing this fiasco continues in mid January.
Reds own their RSN?
No.
Ah, okay I thought they owned theirs for some reason. Thank you
No.
Amazing this fiasco continues in mid January.
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Bankruptcy proceedings can last for a long time. A lot of times, companies go into bankruptcy, not because of a lack of operational cash flow, but because of the inability to pay off long-term debt. It is why the codes are written as they are.
Each team receives an estimated $110mm in revenue sharing. So the only money each ownership is coming up with on their own is the amount above that number.
But, deduct costs for stadium maintenance, GameDay staff, Milb, front office and executive staff, scouts, travel, per diem, taxes on ALL payroll since player contracts aren’t independent contractors, staff, trainers, medical care, so on so forth.
It costs a LOT more to run a team than player salaries
can we get this over with. I’d like to hear that the rangers resigned Monty in the near future.
Currently paying to see in-market MLB and NBA games on directv stream. We are potentially affected by this mlb upheaval. We don’t have Amazon Prime but would consider it to get these games but wouldn’t pay a premium above regular Prime costs.
You can bet on it that they’ll eventually have a paid sports tier. There are plenty of households which don’t watch sports. If they learned anything from cable, passing on the cost to these people will lead them to cancel Prime.
Why should Texas accept a lesser deal. They’re the champs. MLB needs to fix this situation fast so the Rangers can get back to signing needed players for the upcoming season.
MLB has nothing to do with it. It’s the rangers making a decision. Take a lesser deal from diamond or go on their own. If they elect to go on their own they will either find another provider or join the padres and dbacks streaming every game via mlb.tv. Which who knows what that will be worth.
“MLB needs to fix this fast”….It’s not really MLB, It’s their broadcast partners for the most part. And good luck telling a bankruptcy judge to “fix this situation fast”, so the season and off season can proceed normally. Learn the basics, It’s a lot more nuanced and complex than you’re implying.
Nonsense. MLB needs to be held accountable by THE COMMISSIONER!!!!
The fact that Texas and Champs are in the same sentence after 90 wins and a wild card is just a bad look for MLB.
Then again it seems like every league rewards short term success over long term I guess.
Ever heard of the NFL and NBA?
That is also because of Media Rights. The games that are most financially lucrative are playoff games. Thus, they can always come up with a new reason why it will be so great for everybody if they just add another couple of Wild Card teams. Everything is about making money.
By all means let’s hope the best team all season long wins the WS every year so there’s no drama in the playoffs. Better yet, skip the playoffs and just award the trophy to the team with the best record in 162.
Would it have been a bad look for the #2 seed in the AL to win the World Series? Because the Rangers had the same record as Houston.
The number of cable subscribers has dropped substantially, and Texas winning did not change that. How many people watch the games on cable, and subscribe to cable will determine the value, not the teams W-L record.
Because the deal they have is way, way, way to much for the numbers they produce for Bally’s.
Even with ‘winning’ the World Series, the local TV ratings are just so-so. Probably better last year, but in the aggregate getting 100+ million per year in that market is folly — especially in the era of cord cutting.
Lol CY is a punk. He just let Hader go to the Astros. The one glaring need on this team and he hasn’t done ANYTHING about it
The number 1 issue hurting the game of baseball isn’t Steroids, sign stealing, juiced balls, pitchers using sticky stuff or time of the game no the number 1 issue hurting the game by a mile is the mere fact that people CANNOT WATCH THE GAME. I mean how can you draw in and make new fans if your products is inaccessible to the majority of people most people cannot watch their local team and the regional blackout rules kills it for those wanting to watch on mlbtv on streaming. So Manfried has to make this his number 1 number 2 number 3 priority and that is to make the game accessible to those with cable, dish or streaming and make it affordable some things are more important than dollars and cents and you don’t want to become pro Boxing to where the only way they draw money is when Jake or Logan Paul fights because I don’t know if either can play on the field lol.
We should also consider that, at least in WI culture, many people gather at the local watering hole to catch a few innings regularly. If the taverns can’t get the games, they risk losing revenue too. That’s an indirect problem for MLB, but tavern leagues have some power, at least in this state, to act politically and leverage the MLB. We just want to watch games, support our teams, and not need to wonder which channel or streaming network we need to access it!
@ Braves b-head
There really isn’t a simple solution to this problem. MLB teams each negotiate their own TV deals. Once they agree on a contract for the broadcast rights, even if the RSN declares bankruptcy, they are stuck. They have no legal right to sell them again, unless the RSN agrees (not going to happen), or a judge declares the contract void (which takes time). Even if the RSN contract does not include streaming rights, there are so many streaming services, they would be unlikely to choose the one you’re already subscribing to. If only MLB negotiated all the TV deals, like the NFL, and split the money evenly.
Diamond already showed a willingness to abandon unprofitable terms during the 2023 season, when it dropped agreements with the Padres and Diamondbacks.
Just a touch of irony there. Diamond drops the Diamondbacks? They go to the World Series.
I don’t get how a company could avoid bankruptcy AND still bail out of contracts it doesn’t like. Doesn’t the Amazon bailout require them to now honor their existing contracts until they go bankrupt? Meanwhile, the Astros just got Hader most likely.
No because nothing is approved. That’s why there is a time limit on dropping these other teams. Once they come out of bankruptcy then they will be tied to these deals again until they file again next year if it fails.
deGrom, they are just too big to fail.
Bally’s Corporation is a gaming, betting, and interactive entertainment company headquartered in Providence, Rhode Island. It owns and operates 15 casinos across ten states, a horse track in Colorado, and online sports betting operations in 14 states.
Wikipedia
irrelevant. Diamond Sports sold naming rights for its RSNs to Bally, which is why those channels carry the Bally name.
Alright fellow nerds, whose your fantasy sleepers this year? I gotta start prepping for draft soon.
Wyatt Langford and Jacob deGrom could be huge. Evan Carter possibly
Good call with Degrom, could be a late round steal.
Charlie Blackmon & Mike Trout.
OF has me perplexed. Breakout year for Chisholm finally?
Don’t see why not! Will Smith LAD is gonna have a breakout year too! He’ll be in the MVP race!
My guess is that Skenes and Crews are in the minors just long enough to push back their service time.
Nelson Velasquez
Pads, who is that catcher you guys have on his way up? That kid who’s like 17??
Ethan Salas.
Yes!!! That’s the guy!! Hahaha Thank you!
P.S. Pads, got any new kool memorabilia in the Gwynn collection these days???
I would watch the Padres but I live in San Diego and purchase MLB.TV.
Why should I pay ANYTHING additional to watch “in-market” games? I refuse to go to the ballpark due to the absurd cost of everything. I can purchase MLB.TV for the season, then put $10.00 in the vacation every day I watch a game.
You could just purchase the padres package and not the entire mlbtv package and watch the padres.
Can be? Would he not be blacked out because of the MLB Blackout rules since he’s in San Diego?
Can *he?
You’re correct, Padres and Diamondbacks are the only two teams that local blackouts exclude. Must be nice for fans of those 2 teams.
Until next season when the Rockies, Twins, and possibly multiple other teams join them.
You can buy a Padres-only package for MLB.tv for $19.99 per month. See every Padres game with no blackouts.
END BLACKOUTS. Tell Bally and Amazon to F-Off and stream games on your already stable MLB network. Retain each team’s broadcasters. Ratings/views would skyrocket.
Diamond Sports Group is a source of personal inspiration. In my life I aspire to some day be like them, too big to fail.
Reading between the lines, the Twins seem like they’re the one team of them all that is really screwed, or in excellent long term shape here. Can’t figure it out yet, that’s why I’m not a lawyer.
Translation: We couldn’t find a sucker team to take this overrated players so now we’re stuck with him for now. Dammit!
Colorado’s TV contract was not “dropped by AT&T Sports Rocky Mountain”. That RSN was shut down at the end of the 2023 season, thus the Rockies are moving toward a pop-up channel like the D’Backs and Padres have.
So correct me if I’m wrong, but Amazon Prime’s access to the likes of Tigers etc streaming rights is for local access only? That as a Prime subscriber in Canada I’ve got no reason to think Id benefit from this then…
Your premise is correct. Prime Video exclusives for the Tigers would be geofenced to the Tigers’ TV territory, which unfortunately does not include any part of Ontario.
I watched all Rangers games and 1/3 of commercials were for Ballys- no wonder they didn’t make $$$
Manfred failed to be a leader. While 11 teams could not participate in the free agent pool because of revenue uncertainty, he blithely let the big market teams corner the market on the cream of the free agent crop. Not once did he mention the inequity of the situation. He SHOULD HAVE put a moratorium on all free agent signings until the Bally situation was straightened out and every team knew how much they had to spend. Manfred in an empty suit.
At least the Marlins are already used to not getting anything from local media rights…as long as I can watch them and the Heat on cable the same way, I’m cool. If that changes, then it’s further reason to not care about sports the way I have my whole life…b/c everything is content now, and the people in charge of it certainly don’t care about sports, and never have
Its interesting to find out that DSG only had in-market streaming rights for those 5 teams. That the local streaming rights to the other teams they will still broadcast in 2024 has already reverted to the teams.
Not sure what that means in terms of the possibility of single-team packages that are not blacked out locally like the Padres and Diamondbacks were able to sell last season for teams like the Angels and others.
Its also interesting to read that DSG is negotiating with the Twins to broadcast one final season of their games.
Yeah, I haven’t seen a clear answer on this. If teams that own the rights are able to do what the padres do this to me will really hurt diamond viewership. Anyone that keeps diamond for baseball will just cut the cord.
MLB needs to take control of all broadcasting and eliminate the blackouts & delays for MLB premium package viewers like myself. Baseball fans are gouged by cable and streaming services to be able to watch live games, having to pay for hundreds of channels they will never watch.
I will pay to watch my team’s games, but the regional sports networks need to be ousted from the rights to these games forever.
Take it all to one place and the MLB network needs to run it 100%
NBA needs to do exactly the same.
So sick of the RSN drama!!