As Diamond Sports Group continues to exercise the rights afforded to it by declaring Chapter 11 bankruptcy, industry insiders are expecting the company to divest more teams from its regional sports networks. Major League Baseball is prepared to take over the broadcasts as it has already done with the San Diego Padres, and it soon could be broadcasting Texas Rangers games. According to bankruptcy court filings, Diamond Sports Group must pay the Texas Rangers by Thursday of this week or relinquish the team’s media rights. There is no grace period pertaining to the team’s deals.
The latest revelation comes after Major League Baseball Commissioner Robert D. Manfred Jr. revealed that Diamond Sports Group threatened to declare bankruptcy in an effort to negotiate with the league for direct-to-consumer streaming rights. Cord cutting is becoming a manner of increasing concern, and the league is willing to take back the media rights and present the games itself in an effort to hold on to those valuable rights.
Aside from the Texas Rangers, the Arizona Diamondbacks, Cleveland Guardians, Cincinnati Reds and Minnesota Twins are all owed money by Diamond Sports Group over the next month – according to a recent report by John Ourand of Sports Business Journal. A bankruptcy court ruling earlier this month stated that Bally Sports’ parent company is responsible for paying the value of the contracts. Diamond Sports Group looked to renegotiate the deals based on current marketplace conditions, a proposal Major League Baseball vehemently opposed.
Minnesota Twins president and chief executive officer Dave St. Peter expressed optimism that the team’s games would remain on Bally Sports North for much of the season, as the contract does not expire until the end of the year. The Diamondbacks, Guardians and Twins are all due to be paid at the beginning of July, while the Reds are owed money on the 15th of the month.
