As part of its plan, Diamond plans to void the contracts of the Tigers and Rays and to attempt to rework the deals of the five franchises, including the Cincinnati Reds.
Diamond Sports Group, the largest owner of regional sports networks, could be down to broadcasting only one Major League Baseball team’s games next season.
During a hearing in U.S. Bankruptcy Court in Houston on Wednesday, the operator of the Bally Sports regional sports networks indicated it will cut loose the seven teams it has under contract for the 2025 season.
As part of its reorganization plan, Diamond plans to void the contracts of the Detroit Tigers and Tampa Bay Rays and to attempt to rework the deals of the five franchises that are partial owners of their regional sports networks the Cincinnati Reds, Kansas City Royals, Los Angeles Angels, Miami Marlins and St. Louis Cardinals.
The Cleveland Guardians, Milwaukee Brewers, Minnesota Twins and Texas Rangers have contracts that expired at the end of the regular season.
That would leave the Atlanta Braves as the only franchise whose contract would be unchanged.
Attorneys for Diamond said during the hearing that the company has delivered proposals to the 11 teams that are out of contract, rejected deals or are joint ventures.
Diamond Sports has been in Chapter 11 bankruptcy proceedings in the Southern District of Texas since it filed for protection in March 2023. The company said in a financial filing last year that it had debt of $8.67 billion.
Today marks an important step forward for Diamond with the filing of a baseline plan to enable us to emerge from bankruptcy as a viable, go-forward business before year-end,” Diamond Sports said in a statement. “We firmly believe that through our linear and digital offerings we have created the best economic and fan-friendly engine for all of our team partners.
Diamond attorney Andrew Goldman said during the 30-minute hearing that talks remain ongoing with all teams.
MLB attorney James Bromley said he was surprised about the reorganization plan and said they were sandbagged since they only learned about it less than two hours before the start of the hearing.
We have no information about what is being done, Bromley said. Weve had no opportunity to review and now were in front of the court and being asked to make our comments.”
Over the past two seasons, Major League Baseball has had to take over the broadcasts of the San Diego Padres, Arizona Diamondbacks and Colorado Rockies after agreements could not be reached.
Goldman also said during the hearing that Diamond is on a path to getting a new naming rights partner, which is a big development for the company as well as a commercial agreement with one or more streaming partners with respect to the digital rights that the company will possess.
Diamond also has the rights to 13 NBA and eight NHL teams.
Judge Christopher Lopez has scheduled a follow-up session for Oct. 9 with a final hearing on the reorganization plan scheduled for Nov. 14.
Diamond Sports Group and Sinclair Broadcast Group bought the regional sports networks from The Walt Disney Co. for nearly $10 billion in 2019. Disney was required by the Department of Justice to sell the networks for its acquisition of 21st Century Foxs film and television assets to be approved.