Diamond Sports Group on Wednesday told the U.S. Bankruptcy Court for the Southern District of Texas that it has informed its remaining MLB partners that it plans to void its legacy media contracts, with the exception of a standalone rights deal with the Atlanta Braves.
Speaking at a virtual hearing in front of Judge Christopher Lopez, Diamond counsel Andrew Goldman revealed that the owner of the Bally Sports-branded RSNs expects to cut ties with what amounts to eight MLB clubs, should it successfully emerge from bankruptcy.
“The debtors are assuming a single telecast agreement, that of the Atlanta Braves,” Goldman said, in a nod to an amended re-organization plan that had landed on the docket shortly before Wednesday’s hearing got underway. “All of Major League Baseball’s other agreements will be rejected under the plan.”
Diamond’s plan to exit the bulk of its MLB commitments will free eight teams from their legacy in-market rights deals: the Cincinnati Reds, Detroit Tigers, Kansas City Royals, Los Angeles Angels, Miami Marlins, Milwaukee Brewers, St. Louis Cardinals and Tampa Bay Rays. The company’s contracts with three other clubs—the Cleveland Guardians, Minnesota Twins and Texas Rangers—expired at the end of September.
According to rights fee estimates used in producing Sportico franchise valuations, Bally paid nearly $800 million to its 12 MLB teams in 2024, with Atlanta, the Los Angeles Angels and Texas earning by far the most. Texas was still among the highest even though the Rangers had to take a 2024 reduction along with Cleveland and Minnesota.
Goldman said Diamond’s decision to cut its MLB partners loose will allow each club to “begin to make plans, if they haven’t already, for broadcasting the ’25 season.” He went on to hedge a bit, stating that rejecting the agreements “is not our preferred path,” before going on to say that the amended plan “puts the decision in the clubs’ hands.”
As MLB would much prefer to take control over its streaming destiny, it’s unlikely that any of the eight impacted franchises will elect to extend their relationship with Diamond for yet another season of uncertainty. Upon breaking with their local TV partners, the teams will “be free to enter into whatever alternative arrangements for next year they see fit,” Goldman said.
That said, Goldman noted that Diamond has been “interfacing with all of our baseball partner clubs,” with an eye toward investigating “modifications to the agreements that would allow us … to change our view and assume those agreements for many of these clubs.” In other words, upon officially discarding the legacy contracts, Diamond would be amenable to hash out new deals with individual teams—presumably at far lower rates—should any decide to stick around for another season.
MLB counsel objected that the league had been given “no information by the debtors” in advance of Wednesday’s hearing. “We’ve had no opportunity to review [the materials], and now we’re in front of the court and being asked to make our comments,” attorney James Bromley said. “The idea that we’re supposed to be able to turn on a dime … is simply inconsistent with reality.”
Bromley went on to say that he was advised of the “Braves-only plan” just an hour and 15 minutes before the hearing.
Before dismissing the attorneys, Judge Lopez scheduled a follow-up session for Oct. 9. A final confirmation hearing is expected to take place on Nov. 14.
With reporting from Kurt Badenhausen
(This story has been updated in the fifth paragraph to include information on rights fees paid out by Bally. Another update was made after the seventh paragraph, noting DSG’s willingness to re-sign the dropped teams.)
