MLB broadcast partner Diamond Sports Group files for Chapter 11 bankruptcy, still committed to broadcast games in 2023
One of the largest broadcasters of MLB games, Diamond Sports Group LLC, has officially filed for Chapter 11 bankruptcy. Diamond Sports Group LLC is better known to baseball fans as the Bally Sports Network. The network covers multiple teams. The bankruptcy filing revealed that the company is facing more than $8 billion worth of debt.
In the short term, Bally Sports will continue to broadcast MLB games until the bankruptcy process has been completed. This could allow for the regional networks to be sold off and kept running under new ownership. The league expects that nothing will change in regards to the short-term future of broadcasts. The changes will come further down the road.
Bob Nightengale of USA Today reported on the bankruptcy filing via Twitter.
Diamond Sports Group officially files for bankruptcy https://t.co/pvgWJEumbd
"Diamond Sports Group officially files for bankruptcy" - Bob Nightengale
Nightengale also shared the league's official response to the filing. The league has a back-up plan in the event that games cannot be televised by Bally's.
MLB says it fully expects all games to continue to be televised by Bally’s in spite of Diamond Sports Group’s bankruptcy. In the event they are not, MLB will pick them up https://t.co/mSk53vQ0HW
"MLB says it fully expects all games to continue to be televised by Bally’s in spite of Diamond Sports Group’s bankruptcy. In the event they are not, MLB will pick them up" - Bob Nightengale
Knowing that MLB.TV will broadcast games if necessary is incredibly reassuring. There are 14 baseball teams whose broadcast rights are owned by the Diamond Sports Group. There are also 16 NBA teams and 12 NHL teams whose broadcast rights could be up for grabs soon. This bankruptcy will affect the revenue of every team involved.
Could the MLB look to expand their streaming partnerships?
In the wake of this bankruptcy, the league may be looking to the future and moving away from cable. They have already formed a partnership with Apple to broadcast select games. The most obvious option would be Amazon Prime. They began broadcasting NFL games in 2022. If they are looking for more live programming, baseball would be a perfect fit.
Major League Baseball's greatest advantage over other sports leagues is the quantity of games. Each team plays 162 regular-season games. If a streaming service picks up a team's rights, their content library will be massive.
Top-tier franchises like the Los Angeles Angels, San Diego Padres and Atlanta Braves will command a hefty price tag in any negotiations. In the long run, the new agreements will benefit teams that are nervous about the future.