Diamond Sports Group could drop broadcasts of two MLB teams

The ongoing Diamond Sports Group bankruptcy could soon affect another two franchises. Evan Drellich and Mike Vorkunov of The Athletic report that the broadcasting corporation is considering dropping its in-market TV deals with the Guardians and Rangers before the 2024 season.

Diamond, which operates the Bally Sports networks, already severed contracts with the Padres and Diamondbacks during the 2023 campaign. MLB stepped in to handle in-market broadcasting for those clubs. Diamond had sought to pay reduced rights fees to the Twins, Reds, Guardians and Rangers during the year as well. The bankruptcy court eventually awarded those teams their full rights fees.

If Diamond officially drops two more agreements, the Cleveland and Texas organizations will have to find alternate means of broadcasting within their local markets. MLB could step in to ensure those games aren’t blacked out, as it did for the Padres and D-Backs. Perhaps the franchises could line up an agreement with a new regional sports network during the offseason. In any event, it’s a suboptimal situation — albeit one which team executives were surely anticipating at this point.

“Our intention is to broadcast almost all of (our) Major League Baseball teams next year,” one of Diamond’s attorneys said in today’s bankruptcy proceedings (relayed by Drellich and Vorkunov). “There are a few, a very few, for which we do not have agreements in place. And that, frankly, at this point, are too expensive for us to broadcast without concessions. I am told that those discussions are taking place, there have been reach-outs to both of the teams involved.”

Diamond has local broadcasting deals with 11 teams. That figure was 14 at the beginning of the ’23 season. In addition to the lapsed deals with San Diego and Arizona, Bally’s contract with the Twins expired at the conclusion of the year. Dan Hayes of The Athletic wrote Tuesday that a new short-term deal with Diamond to carry Minnesota’s 2024 broadcasts hasn’t been ruled out.

The Angels, Braves, Brewers, Cardinals, Marlins, Rays, Reds, Royals and Tigers also have existing contracts with Diamond. Jonathan Randles and Steven Church of Yahoo! Finance write that attorneys for both Diamond and Sinclair – the media conglomerate which had acquired Diamond in 2019 – indicated in today’s court proceedings that Diamond might be liquidated entirely at the end of the 2024 MLB season. (Sinclair and Diamond now operate independently after Diamond accused Sinclair of siphoning funds from the subsidiary.)

The uncertain TV rights picture could impact the spending habits for those franchises. The Twins are scaling back payroll this offseason. Only the franchise’s ownership and front office know precisely how much that’s a result of the TV picture, but Minnesota president of baseball operations Derek Falvey has called it a contributing factor.

While the Twins have run almost exactly average player payrolls, Cleveland and Texas have been on opposite ends. According to Cot’s Baseball Contracts, the Guardians ranked 25th in Opening Day payroll this year. The Rangers opened the season ninth and have the fifth-highest projected outlay for 2024 on the heels of their World Series win.