ProHockeyNews has been monitoring the Diamond Sports Group’s (DSG) business and legal issues for more than a year now.
This week, bankrupt DSG announced that it has terminated the contracts with 11 Major League Baseball (MLB) teams for the 2025 season. The 11 teams represent 12 that had been part of the DSG contract with teams. Only the Atlanta Braves will continue with a DSG broadcasting agreement.
Among those teams losing broadcasting outlets, Cincinnati Reds, Detroit Tigers, Kansas City Royals, Los Angeles Angels, Miami Marlins, St. Louis Cardinals, and Tampa Bay Rays had agreements through next season, and will now need to renegotiate with DSG and Bally Sports (operated by DSG, or find other broadcasting outlets.
Four of the 11 teams had their contracts ending this season, including Cleveland Guardians, Milwaukee Brewers, Minnesota Twins, and Texas Rangers.
The Florida Panthers and Dallas Stars of the National Hockey League (NHL) have opted out of their regional sports network (RSN) and developed broadcasting arrangement for free, over-the-air televising of their games for the 2024-25 NHL season.
In court this week, James Bromley, an attorney for MLB, made the statement that the league was “blindsided by the DSG announcement.
“We have no information about what is being done,” Bromley said in the court hearing, according to The Athletic. “We’ve had no opportunity to review, and now we’re in front of the court and being asked to make our comments.”
At the opposite table in court proceedings, a DSG statement referred to their interest in finding a new agreement process with the teams.
“Today marks an important step forward for Diamond with the filing of a baseline plan to enable us to emerge from bankruptcy as a viable, go-forward business before year-end. We have delivered proposals to and remain in discussions with our MLB team partners around go-forward plans. We firmly believe that through our linear and digital offerings we have created the best economic and fan-friendly engine for all of our team partners.”
The translation to that statement suggests they are looking for higher rates to settle their bankruptcy issues, and squeeze more money from MLB teams, and franchises in other leagues. That means fewer dollars in revenue for teams.
That MLB was “blindsided” by DSG in court seems to say more about baseball’s business practices and knowledge of the landscape than DSG’s capricious decision. The RSN business model and practice are a danger to all professional sports franchises, except the National Football League.
The collapse of the RSNs, including Diamond Sports and Bally Sports ought to be on every league radar in the coming year. No one should be “blindsided” again.
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