Hallelujah, it’s finally happening. Major League Baseball’s long-standing tension with the Bally Sports Regional Networks seems to be winding down. In a bankruptcy court hearing Wednesday, the attorney for the networks’ parent company announced plans to reject ten out of eleven team contracts as they exit Chapter 11 bankruptcy.
Only the Atlanta Braves will be retained, unless other agreements are reached with the restructured Diamond Sports, the parent company. The contracts being discarded involve the Detroit Tigers, Miami Marlins, Cleveland Guardians, Kansas City Royals, St. Louis Cardinals, Minnesota Twins, Cincinnati Reds, Los Angeles Angels, Tampa Bay Rays, and Milwaukee Brewers. In Chapter 11 proceedings, debtors are permitted to terminate contracts.
Andrew Goldman, Diamond’s attorney, stated, “We are filing an amended plan today which includes assuming the telecast rights agreement for the Atlanta Braves. All other agreements with Major League Baseball teams will be rejected, allowing those teams to start making new broadcasting arrangements for the 2025 season.”
Goldman clarified that rejecting the other contracts was not the preferred option, explaining that they had hoped to keep as many teams as possible in the restructured organization. He mentioned that they have been communicating directly with the teams rather than through the Commissioner’s office, which is aware and supportive of these discussions.
MLB’s attorney, Jim Bromley, expressed frustration, saying he learned about these developments only 75 minutes before the hearing, feeling “sandbagged.” He remarked on the lack of information from the debtors, stating, “We don’t have any way to evaluate what Mr. Goldman has proposed. It seems some clubs are being left out once again.”
The ongoing conflict between MLB and Diamond has been tense, dating back to MLB’s competitive bids for RSNs in 2019 and January 2023. MLB Commissioner Rob Manfred testified that Sinclair’s CEO threatened bankruptcy if MLB didn’t reduce its rights fees.
With the cable industry shrinking due to cord-cutting trends, MLB has considered launching its own local media platform, which could gain traction with ten teams now needing new broadcast arrangements. Many teams dropped by Diamond have opted for local broadcasts and streaming, which provide broader reach but lack the revenue generated by traditional RSN agreements.
Looking ahead, everything culminates on November 14 at a confirmation hearing for the reorganization plan, which includes around two dozen NBA and NHL teams still under contract, alongside the Braves. A major concern is how a regional sports network can thrive without baseball, which occupies the summer months when the NBA and NHL are off-season.
Goldman indicated that Diamond is not finished trying to secure contracts with MLB teams directly, bypassing MLB in negotiations. He acknowledged that while some teams may not involve the Commissioner’s office in discussions, they are still negotiating with Diamond.
Bromley countered, asserting that MLB is fully engaged in all relevant conversations, and that Goldman’s claim doesn’t resolve the underlying issues.
Additionally, Diamond’s lawyer noted that the company is nearing a new naming rights deal since the Bally Sports agreement ended with the conclusion of the MLB season, and they are close to finalizing one or two streaming partnerships, including an unsigned agreement with Amazon Prime.
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