A number of MLB teams are in a somewhat precarious media rights situation and one squad in particular may need the league to act sooner rather than later in order to continue broadcasting games.
Diamond Sports Group -- which owns the broadcast rights for 14 MLB teams -- filed for bankruptcy in March and has now begun missing rights fees payments to several MLB teams. According to John Ourand of Sports Business Journal, the Cincinnati Reds have their back to the wall.
While Diamond has missed payments to other teams, including the Cleveland Guardians and Minnesota Twins, the Reds’ situation is different. Bally Sports Ohio, where Reds games are shown, is partly owned by the team itself -- which is not the case in the Cleveland and Minnesota markets. While MLB is in bankruptcy court over those teams, the Reds’ status as co-owners of Bally Sports Ohio means that case has not advanced to court.
Diamond’s rights payment to the Reds was due on April 17. They are getting a 15-day grace period, but if no payment is made, the league believes the Reds’ TV rights will revert to the team. At that point, the league would step in and produce the games itself. According to Bobby Nightengale of the Cincinnati Enquirer, the team’s May 6 game against the Chicago White Sox is seen as “a potential turning point” in the saga.
MLB has been preparing for this scenario since before the season, so there was some anticipation of this potential hurdle. It is, however, intriguing to see how this is handled, as several other teams could end up in the same situation as the season unfolds.
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