Diamond Sports Group said in court today that it plans to broadcast just one MLB club next year, the Braves, per reporting from Evan Drellich of The Athletic. The company, which owns the Bally Sports Networks, also had deals with the Reds, Tigers, Royals, Angels, Marlins, Cardinals, Rays but plans on walking away from those. As Drellich notes, as part of the company’s ongoing Chapter 11 bankruptcy process, they can accept and reject contracts though the measures have to be approved by the court. The Brewers, Guardians, Twins and Rangers had one-year deals with Diamond for 2024. Those 11 clubs will now have to renegotiate new deals with Diamond or find other broadcasting arrangements.
Drellich provides some more specifics on X, noting that it’s more complicated than Diamond simply abandoning these 11 clubs, but that seems to be the company’s goal regardless. Alden González of ESPN adds some more details, noting that a confirmation hearing has been set for November 14 and 15 in Houston. The Marlins and Diamond have mutual interest in working out a new deal, per a report from Barry Jackson and Craig Mish of the Miami Herald. The Angels are working on a new deal with Diamond, per Jeff Fletcher of the Orange County Register.
Per Drellich, league representatives said they were “sandbagged” by the news. “We have no information about what is being done,” said Jim Bromley, lawyer for MLB. “We’ve had no opportunity to review and now we’re in front of the court and being asked to make our comments.”
The ongoing financial situation of Diamond Sports Group has been a significant part of baseball’s economic landscape for a long time and this could prove to be a major development as part of that narrative. Largely due to cord cutting, the regional sports network model has been gradually collapsing in recent history. In the 2022-23 offseason, reports emerged that Diamond was in rough shape financially and the company filed for bankruptcy before the 2023 MLB season began.
They dropped their contracts with the Padres and Diamondbacks during that 2023 campaign. It threatened to do the same with the Guardians, Twins and Rangers for 2024 but ultimately renegotiated lower fees with those clubs and continued those broadcasts through this year. Now it seems like the company is continuing down this path but with an even more aggressive severing of their existing ties to Major League Baseball.
This is bound to have short-term effects on clubs and players. These contracts have been sources of significant revenue for clubs, as MLBTR covered earlier this year. The 11 teams that Diamond plans to cut ties with were previously receiving between $33MM (Brewers) and $125MM (Angels) on an annual basis. Per reporting in April, the Padres were set to receive about $60MM in 2023 before their deal with Diamond collapsed. The league reportedly covered about 80% of those fees last year but didn’t plan to do so in 2024 and beyond.
Uncertainty around broadcast revenue seemingly played a major role in the 2023-24 offseason, which was disappointing for players. Teams like the Padres, Rangers, Twins and others were either cutting payroll or not increasing it as much as had previously been expected, with the TV situation often being used as justification. This appeared to play a role in various free agents not finding markets as strong as they had anticipated and many of them lingered unsigned into the early months of 2024 and/or signed for deals well below projections. It seems fair to expect that similar narratives could emerge in the coming winter.
Per González, a company source says that Diamond is still hoping to sign new deals with the 11 clubs being cut out today. However, that would presumably involve reduce fee payments, such as those received by the Guardians, Twins and Rangers this year. As mentioned up top, the Marlins and Angels seem to expect to continue their relationship with Diamond/Bally in 2025, though negotiating new deals may take some time.
In the long-term picture, MLB might be happy to be further cutting ties with Diamond. They have continually expressed skepticism about the company’s plans to stay afloat. Diamond has tried various methods of refinancing, including signing a streaming deal with Amazon, but the league hasn’t seemed convinced that any of the company’s plans would lead to long-term stability.
As mentioned, the league has already started selling some games to fans in direct-to-customer fashion. Commissioner Rob Manfred has aspirations of marketing a digital streaming package consisting of several MLB teams, which fans could watch without blackout restrictions. MLB.TV already exists and allows fans to watch most games, but the RSN deals lead to certain teams being blacked out in the areas covered by those deals.
Having less commitment with Diamond going forward will increase the viability of that streaming plan over the years to come. However, as mentioned, less TV revenue figures to have a sizeable impact on the short-term economics of the game. This will lead to ripple effects throughout the upcoming offseason and will likely be worrisome for certain players hitting the open market in the coming weeks. New deals could be negotiated between now and the 2025 season, which could put some money back on the table, though likely less than in previous years.
There is also the matter of the fan experience, as there were times in 2024 where the Braves were not available on TV to some customers during a dispute between Bally’s and Comcast. For fans of these 11 clubs today, they will have to keep an eye on the proceedings to determine if their favorite club will still be accessed in the ways they are accustomed to or if they will have to switch to some new broadcast model.
