Sinclair, owner of Diamond Sports Group and its subsidiary Bally Sports, the nation’s largest regional sports network, expects RSN to liquidate its operations at the end of the 2024 MLB season next September. Bally Sports, which has been in financial trouble, has been under bankruptcy protection since March of last year. Once the termination date is determined, the bankruptcy proceedings will be completed.
At a U.S. Bankruptcy Court hearing on Nov. 15, Judge Christopher Lopez upheld Diamond Sports’ proposed settlement that would allow the NBA, NHL and MLB franchises to move forward. On November 6, Diamond Sports reached an agreement with the NBA, allowing for future activities. Under the agreement, Diamond Sports will broadcast live in-market games for 15 teams throughout the 2023-24 season. This ensures that the NBA will continue to have games available to watch locally on Bally Sports until mid-April.
After that, 15 franchises and the NBA will own local broadcast and streaming rights. This is regardless of the length of each franchise’s current contract with Diamond Sports. The deal is also conditional on Diamond Sports reaching a renewal agreement with MVPD Spectrum, expected in February next year. Ahead of the start of the regular season, the NBA’s Phoenix Suns and Utah Jazz changed their distribution model from RSNs to local terrestrial broadcasters and streaming.
Diamond Sports is also in talks with the NHL and a similar agreement is expected. Diamond Sports televises in-market games for 11 of his NHL teams.
The decision faces some challenges due to two complaints from MLB and Sinclair. After the hearing, Judge Lopez commented on the settlement: “I understand that it could potentially undermine the entire cooperative agreement, but that’s the way the parties set it up.”
MLB is seeking more clarity on local broadcast contracts and revenue. Diamond Sports lost its distribution rights to MLB’s Arizona Diamondbacks and San Diego Padres during the 2023 season due to nonpayment. As a result, MLB took over in-market distribution for both teams midway through the season. The RSN also sought to reduce rights fees for the Minnesota Twins, Cincinnati Reds, Cleveland Guardians and eventual World Series champion Texas Rangers during the 2023 season. The bankruptcy court ordered all four franchisees to pay in full. The contract between the Minnesota Twins and Diamond Sports expires after the 2023 season.
For the 2024 season, Diamond Sports will maintain local television agreements with 11 MLB teams. There are also reports that Diamond Sports may miss Cleveland and Texas. In that case, in-market rights revert to both franchises. MLB noted in its complaint that Diamond Sports could remove additional teams before the end of the 2024 season. The Athletic The Guardian reportedly received a $55 million fee in 2023. The Rangers have a 20-year deal (starting with Fox Sports in 2011) with an average annual cost of $111 million. The sudden loss of payments will impact the salaries of both clubs.
“We have an agreement with the NBA, which is great,” said MLB attorney James Bromley. I understand it’s in the works, but I haven’t seen it yet. And there’s no contract with Major League Baseball. And there are a lot of issues that need to be addressed as well.”
MLB has been pressuring Diamond Sports to make a decision on agreements with the remaining 11 MLB teams. MLB is expected to send Diamond Sports an offer for next season in the coming weeks. “Next year we intend to broadcast almost every Major League Baseball team,” a lawyer for Diamond Sports said at a Nov. 15 hearing. In a small number of cases, agreements have not yet been concluded. And, frankly, it’s just too expensive to broadcast at this point without concessions. I hear that such discussions are taking place and that there has been contact between the two sides. [Cleveland and Texas] To all the teams involved. ”
Sinclair, which was spun off from Diamond Sports, claimed in its complaint that it is owed $250 million in management fees through the end of the 2024 MLB season. Mr. Sinclair argues that the agreement does not take that into consideration.
Meanwhile, Diamond Sports Group is suing its parent company for $1.5 billion in damages for “fraudulent asset transfers, unlawful distributions and payments, breach of contract, unjust enrichment, and breach of fiduciary duty.” is happening. Judge Lopez tentatively set a hearing on both motions for Dec. 8.
And yet, in the words of Yogi Berra, “It’s not over until it’s over.” cord cutter news According to reports, Bally Sports believes it still has a path to bankruptcy without shutting down. A lot can change between now and the end of his MLB season in 2024. A sale, new contract or new funding could keep Bally Sports going, but for now, the story in court today was that Bally Sports will ultimately end in 2024. .
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