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Concerns Arise Over Diamond Sports Group’s Future Amid Bankruptcy Proceedings
In a recent bankruptcy court filing, Major League Baseball (MLB) and the Atlanta Braves have voiced significant concerns regarding the proposed reorganization plan of Diamond Sports Group, the leading owner of regional sports networks in the United States. The filing highlights the skepticism surrounding Diamond Sports’ financial stability and the likelihood of it facing further economic challenges in the near future.
According to the objection raised by MLB and the Braves, there exists a “substantial likelihood” that Diamond Sports may soon experience additional financial distress or find itself in bankruptcy court once again. Both entities emphasize their vested interest in seeing Diamond Sports succeed and adhere to a sustainable reorganization plan, however, they remain unconvinced about the current proposal’s viability.
A representative from Diamond Sports has not yet responded to requests for comment following the filing. The company is slated to seek approval for its reorganization strategy from a U.S. bankruptcy judge on Thursday.
Concerns from the league and the Braves primarily revolve around the insufficient information provided within the restructuring proposal, which comprises 20 documents totaling 181 pages. Legal counsel for Diamond has noted in court that they face limitations in sharing detailed information, citing confidentiality agreements with distribution partners such as pay TV providers.
Furthermore, MLB and the Braves have requested further insights into a prospective commercial partnership between Diamond and Amazon, which Diamond’s attorneys have indicated is still under discussion.
The situation is compounded by issues surrounding Diamond Sports’ direct-to-consumer strategy, a component increasingly critical as audiences move away from traditional cable subscriptions. This concern comes amidst previous instances where MLB sought more clarity regarding Diamond’s financial maneuvers, including inquiries into a recent naming rights agreement with FanDuel for their regional sports networks, previously identified under the Bally Sports brand.
The Braves are now part of Atlanta Braves Holdings, a publicly traded company formed after separating from John Malone’s Liberty Media in 2023. Malone remains a stakeholder in the company and continues to serve as the chairman of Liberty Media.
Diamond Sports had indicated it plans to maintain its contract with the Braves as part of its bankruptcy strategy, while also exploring options to renegotiate or possibly terminate agreements with 11 other MLB teams affiliated with them.
It is important to note that the Braves’ recent objection does not indicate a withdrawal from their partnership with Diamond for regional media rights. On the contrary, recent developments have seen the St. Louis Cardinals reach an agreement regarding local media rights with Diamond, and reports from an October court session suggested that a deal with the Miami Marlins was close to fruition.
In a related development, the Cincinnati Reds announced their decision to withdraw from the regional sports network owned by Diamond Sports, as confirmed in a court filing. Additionally, three teams that Diamond was negotiating with have opted to seek MLB’s assistance in producing their local games for the upcoming seasons.
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