On the eve of a confirmation hearing regarding Diamond Sports Group’s reorganization plan, Major League Baseball and the Atlanta Braves have withdrawn the objection they filed last week. The move makes Diamond’s exit from Chapter 11 bankruptcy look very likely heading into Thursday’s hearing.
Per Tom Friend of Sports Business Journal, negotiations between the two sides continued amid the objection, and the Braves will likely receive close to the full value of its original contract with Diamond (reported around $75 million per year) as a result. Other teams that have renegotiated deals with Diamond have seen substantial reductions in their rights fees.
Included in Diamond’s reorganization plan are go-forward arrangements with the Los Angeles Angels, Tampa Bay Rays, and Detroit Tigers. Those teams will join the Cincinnati Reds, Miami Marlins, St. Louis Cardinals, and the aforementioned Braves on the newly-branded FanDuel Sports Networks (formerly Bally Sports Networks).
MLB and the Braves are no longer objecting to Diamond Sports Chapter 11 plan. Deals have been struck with otheer teams for airing on FanDuel Sports Network, including the Angels, Rays and Tigers, joining the Reds, Braves, Marlins and Cards
— Daniel Kaplan (@KaplanSportsBiz) November 14, 2024
It’s possible that other franchises, such as the Kansas City Royals, whose local rights are still up in the air but were previously inked to contracts with Diamond, will renegotiate after the company’s reorganization plan is approved.
For now, it looks as if at least seven MLB franchises will remain on Diamond’s RSNs going into the 2025 season. The company has already reached deals with the NBA and NHL to retain its teams from those leagues at reduced rights fees.
We’ll know for sure tomorrow whether or not Diamond’s plan will be upheld in court.
