A Main League Baseball emblem at Angel Stadium in Anaheim, California, Could 22, 2022.
Ronald Martinez | Getty Pictures
Main League Baseball and the Atlanta Braves have raised points with the reorganization plan and future viability of Diamond Sports activities Group, the nation’s largest proprietor of regional sports activities networks, in response to a Friday chapter courtroom submitting.
The Braves and MLB stated within the objection that they’ve “grave considerations” with the present plan, as “there’s a substantial chance that [Diamond Sports] will discover themselves as soon as once more in monetary misery and/or chapter courtroom within the close to future.”
The submitting famous that each MLB and the Braves have a vested curiosity in Diamond Sports activities succeeding with a reorganization plan, however they don’t seem to be satisfied that the one presently proposed is viable.
A consultant for Diamond did not instantly touch upon the submitting. The corporate has till Wednesday to reply to the objection. In the meantime, Diamond will search approval of its reorganization plan from a U.S. chapter choose on Thursday.
MLB and the Braves’ concern stems from a lack of awareness concerning the restructuring proposal, which consists of 20 paperwork for a complete of 181 pages, in response to the submitting. Diamond attorneys have stated in courtroom there are limitations to what they’ll present partly due to the confidentiality agreements with the corporate’s distribution companions, reminiscent of pay TV operators.
As well as, each the league and Braves have additionally requested extra readability on what Diamond’s proposed industrial partnership with Amazon will appear like. Diamond attorneys have beforehand stated in courtroom that discussions with Amazon are nonetheless ongoing.
MLB and the Braves are additionally involved about confusion over Diamond Sports activities’ direct-to-consumer plan, a technique that has solely turn out to be extra necessary as extra clients exit from conventional cable bundles.
This isn’t the primary time MLB has needed extra info on Diamond’s monetary plans. In October, an MLB lawyer stated in a courtroom listening to that the league needed extra info on the language utilized in a latest naming rights agreement deal Diamond struck with FanDuel for the regional sports activities networks, previously often called Bally Sports activities, that Diamond owns.
The Braves are a part of publicly traded firm Atlanta Braves Holdings after being split off from John Malone’s Liberty Media in 2023. Malone continues to be a shareholder within the new firm along with being chairman of Liberty Media.
Diamond Sports activities had beforehand stated it is going to retain its contract with the Braves as a part of its chapter plan, whereas making an attempt to renegotiate its contracts with 11 different MLB groups it has offers with, or drop them.
The Friday objection doesn’t imply that the Braves have turned away from Diamond for his or her regional media rights.
As of Thursday, the St. Louis Cardinals and Diamond agreed to phrases for his or her native rights, and in an October courtroom listening to, attorneys stated that Diamond was nearing an agreement for the Miami Marlins.
On Friday, the Cincinnati Reds stated they might exit their regional sport community owned by Diamond, in response to a courtroom submitting.
Three of the 11 groups that Diamond was making an attempt to transform contracts with have since turned to MLB to provide their native video games.
