According to reports, the bankrupt Diamond Sports Group is close to reaching a settlement with Major League Baseball that could determine which teams Diamond will broadcast in 2024. Diamond Sports Group owns the broadcast rights to 11 Major League Baseball teams through its regional sports networks branded with the Bally logo. MLB attorney James Bromley said at a bankruptcy hearing that while they have a plan to proceed, there are still problems to resolve. The following hearing is set for January 10. The potential agreement would make the 11 contracted teams’ television revenue for the 2024 season more transparent.
The Los Angeles Angels, Milwaukee Brewers, Atlanta Braves, St. Louis Cardinals, Cleveland Guardians, Miami Marlins, Texas Rangers, Tampa Bay Rays, Cincinnati Reds, Kansas City Royals, and Detroit Tigers are the teams that Diamond currently has a contract with through 2024. The specifics of the framework that Diamond and MLB were debating were not revealed in court, and following the hearing, neither party would comment.
It is reported that Diamond has thought about waiving Texas and Cleveland in the event that a new financial agreement cannot be reached. The proposed settlement has received support from representatives of the Guardians. Though the identity of the third team is unknown, Diamond attorney Andrew Goldman stated in court that three teams are not presently being considered for inclusion. According to Charles Koster, the Rangers’ attorney, Diamond will be pursuing a change in terms of his contract with three teams.
There is conjecture that the third team might be one that Diamond once owned but does not now, like the Arizona Diamondbacks, San Diego Padres, or Minnesota Twins. Player agents feel teams are overstating their worries about TV revenue, which has led to potentially impacted teams cutting their offseason budgets due to the uncertainty surrounding Diamond and the Bally stations.
The hearing between Diamond and MLB was originally slated for this Friday, but because of the outcome of a mediation meeting, it was postponed until January. More settlement discussions are made possible by the postponement. Diamond’s lawyer, Goldman, expressed optimism that a solution could be found. Still, the more important question is what will happen after 2024. By then, Diamond is probably going to have a Chapter 11 reorganization plan in place, which could result in the teams receiving back any baseball TV rights that Diamond may still hold through 2025 and beyond. Teams may decide to look for different partners in 2025 as a result of this.
Diamond televised games for 14 MLB teams in 2023. But during the 2023 season, they ceased to pay the Padres and Diamondbacks, and MLB took over the broadcasts. Diamond’s Twins contract expired following the previous campaign. In addition, with Warner Bros. Discovery leaving the RSN business, the Colorado Rockies are uncertain about their TV future in 2024.