Diamond Sports looks to drop 11 MLB teams from Bally Sports regional networks
Major League Baseball Teams to be Dropped from Regional Sports Networks #
Diamond Sports, the owner of Bally Sports-branded regional sports networks, has announced plans to drop all Major League Baseball (MLB) teams from its channels, with the exception of the Atlanta Braves. This decision comes as part of the company’s ongoing bankruptcy process and attempts to finalize a reorganization plan.
The company has reached out to 11 teams currently aired on its networks with amended, proposed contracts to determine the future of MLB coverage. These teams include the Cincinnati Reds, Cleveland Guardians, Detroit Tigers, Kansas City Royals, Los Angeles Angels, Miami Marlins, Milwaukee Brewers, Minnesota Twins, St. Louis Cardinals, Tampa Bay Rays, and Texas Rangers.
While dropping these teams is not the preferred path for Diamond Sports, the company stated that its goal is to bring as many teams as possible into the reorganized company’s fold. Negotiations with individual clubs are ongoing, but discussions with the MLB Commissioner’s Office have concluded.
The MLB has expressed disappointment with this development, stating that some clubs are being “left out in the cold again.” This situation arises as the regular season has just ended and the postseason has begun, with regional sports networks primarily airing regular-season games.
The regional sports network business model has faced challenges in recent years due to cord-cutting trends in the pay-TV industry, leading to fewer subscribers. This, coupled with Diamond’s heavy debt load, contributed to the company filing for bankruptcy in March 2023.
As part of its restructuring efforts, Diamond has been attempting to reset rights payments to reflect current market rates. This has resulted in the rejection of some contracts, with several teams finding new TV and streaming homes.
Despite these challenges, Diamond Sports has filed an amended reorganization plan, which it considers a “watershed moment” for the company. The plan aims to enable Diamond to emerge from bankruptcy as a viable business before the end of the year. However, the possibility of winding down the business still exists.
Diamond Sports has assured the NBA and NHL that it will honor their contracts through the end of the season. The company believes that its linear and digital offerings create the best economic and fan-friendly engine for all of its team partners.
This development follows previous departures from Bally Sports networks, including the San Diego Padres and Arizona Diamondbacks last year. In those cases, MLB began producing and distributing games on pay-TV bundles and MLB TV.
The situation remains fluid as negotiations continue and the sports broadcasting landscape continues to evolve in response to changing viewer habits and financial pressures.