Broadcaster Diamond Sports Group has dropped two MLB teams, with nine others understood to be in jeopardy.
Editor's Note: An earlier version of this story incorrectly stated how many teams Diamond Sports Group is shedding from its portfolio. Diamond rejected the contracts of two teams and suggested that the broadcast futures of nine others could be in jeopardy. A previous version of this story also misstated the number of MLB teams whose Diamond contracts expired after the 2024 season; There are four.
Diamond Sports Group appears to be threatening to drop virtually every MLB team in its portfolio besides the Atlanta Braves, barring contract renegotiations on more favorable terms. Wednesday's court hearing where that message was delivered sent the baseball television world into a bit of a frenzy.
Andrew Goldman, a lawyer for the broadcast company, said during a federal bankruptcy hearing that Diamond “plans to assume the single telecast rights contract, the Atlanta Braves. All other teams, other contracts in Major League Baseball, will be rejected under this plan.”
That statement doesn't mean Diamond — which carried a dozen teams in 2024 — now has just one team in its portfolio for the 2025 season. Two of them, the Detroit Tigers and Tampa Bay Rays, are out for now after Diamond declined their contracts. But how many MLB teams Diamond will ultimately carry in 2025 is up in the air, and Diamond's message to the league is that it wants to renegotiate the remaining contracts.
“For many of these clubs, we received proposals, we provided significant due diligence and estimates, and our management team negotiated directly with each of those clubs,” Goldman said. “But at the end of the day, the revised plan now puts the decision in the hands of the club.”
Diamond's contracts with four MLB teams expire after this season: Cleveland Guardians, Minnesota Twins, Texas Rangers and Milwaukee Brewers. Those teams could reach new deals with Diamond. (The Sports Business Journal reported last week that the Rangers plan to operate the telecast themselves, selling games directly to distributors separate from MLB.)
That leaves eight teams still under contract for 2025. On Wednesday, Diamond said it intends to accept (keep) the Braves' contracts and reject (drop) the Tigers' and Rays' contracts. But the Tigers and Rays could also work out new deals.
Now, the five teams that Diamond has contracts with — the Los Angeles Angels of Anaheim, the Cincinnati Reds, the St. Louis Cardinals, the Kansas City Royals and the Miami Marlins — cannot technically be assumed or rejected because they are not a formal part of the bankruptcy process. These teams are referred to as “joint venture teams”.
But Diamond has essentially walked away from a “joint-venture” team before — the San Diego Padres were in the same classification when Diamond decided not to pay the team midway through the 2023 season and the club regained his rights.
“The company is in active dialogue with all of our JV partners, who are aware of the impact of not being able to reach an agreement,” Goldman said.
MLB lawyer Jim Bromley said the league had no idea Wednesday's news was coming.
“We had no information about what was being done,” Bromley said. “It's unfortunate that we've been sandbagged like this.”
Diamond and MLB have been at odds throughout the bankruptcy process, with MLB consistently raising the most doubts about Diamond's ability to successfully avoid liquidation and reorganize into a viable business. There was a chest bump between the two sides.
“As Major League Baseball and its clubs have reminded this court I think no fewer than seven or eight times … the commissioner's office has consistently raised two concerns,” Goldman said. “No. 1, Clubs need to be sure of what is going to happen with their telecast contracts And number two, concerns our ability to, quote, 'pay the bills.'
“The revised plan, which we are filing today … conclusively answers both of these questions.”
In court Wednesday, Goldman said Diamond essentially stopped dealing with the commissioner's office.
“We are interfacing directly with our baseball partner clubs, not through the commissioner's office, but directly with them, and the commissioner's office is aware of that and fully agrees with that,” Goldman said.
Goldman also pushed back against Bromley's comment that MLB has been “sandbagged,” calling it “simply not accurate.”
A spokeswoman for the commissioner declined to comment after Wednesday's hearing.
The drama came Wednesday at a status-update hearing where Diamond filed a revised get-out-of-bankruptcy plan with the court as soon as the hearing began.
Diamond's bankruptcy proceedings are nearing completion. The company has proposed Nov. 14 and 15 for its confirmation hearing, where a judge gives the final sign-off — or not.
Diamond still has contracts to broadcast NBA and NHL teams, and while it believes its revised plan will be successful, it also includes a “toggle” for a wind-down — an option to liquidate the company if the plan doesn't work out. out
In a statement issued after the hearing, Diamond said: “A significant step forward for Diamond today is the filing of a baseline plan that will enable us to emerge from bankruptcy before the end of the year as a viable, forward-looking business. We have sent proposals and are in discussions with our MLB team partners regarding plans moving forward. We strongly believe that through our linear and digital offerings we have created the best economical and fan-friendly engine for all our team partners.”
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(AP Photo/Jeff Roberson, File)