Bally Sports Regional Networks will once more carry the Minnesota Twins, Texas Rangers, and Cleveland Guardians after agreements to extend their broadcast seasons. Twelve MLB clubs will air on the RSN network this season, in addition to the nine other teams for which Bally’s parent Diamond Sports Group has already attested to having agreements in place.
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DSG filed for Chapter 11 bankruptcy over a year ago, and since then, it has fought MLB on which team contracts to void and when (last year, DSG released the contracts for the San Diego Padres and Arizona Diamondbacks). When it became apparent early last month that DSG would cease operations at the conclusion of the ’24 season, MLB’s primary worry was persuading Diamond to disclose whose clubs it intended to retain for the championship run.
Everything changed when DSG and Amazon reached a financial agreement. New funding has been committed, from Amazon as well as a new loan that is being suggested, and DSG now seems determined to survive into 2024.
DSG informed the court during a January 17 court hearing that it planned to commit to nine of the eleven teams that had contracts expiring in 2024 at the original conditions. The Detroit Tigers, Cincinnati Reds, St. Louis Cardinals, Florida Marlins, Tampa Bay Rays, Kansas City Royals, LA Angels, Atlanta Braves, and Milwaukee Brewers are the nine teams. During that hearing, MLB continued to withhold judgment and maintained a move to force DSG to render a decision.
However, it seems that DSG has made a decision based on the most recent information. It submitted papers this morning asking the court to accept fresh agreements at restructured terms with the Rangers and Guardians, which is probably code for a less payment than agreed upon.
Every move stated, “The Amendment allows for modifications to the rights fee and truncates the term of the Telecast Rights Agreement so that it will terminate automatically at the end of the 2024 MLB season.”
Additionally, DSG submitted a move to the Twins, whose Bally’s contract was set to end after the 2023 campaign.
What happens if DSG runs out of money during the season is one of MLB’s worries. DSG stated that the teams would have priority status under the bankruptcy code in the filings that were filed this morning.
The Rangers motion from DSG stated, “Among other things, the Amendment benefits the Debtors by resolving the Motion to Compel as to the Rangers and allowing the Debtors to profitably broadcast Rangers’ games through the 2024 MLB season in accordance with the business plan.” “The Rangers gain from the Amendment because it gives them certainty and clarity through the 2024 MLB season and enables them to switch to a different broadcaster prior to the 2025 MLB season.”
Assuming the court gives its consent, the clubs now know exactly how much money they will make from TV this season. In order for the clubs to prepare for the next season, they had pleaded with the court to order DSG to select the teams it would retain. That clarity has arrived, even if the final judgments were made only a few weeks before pitchers and catchers report.
“The Amendment truncates the term of the Telecast Rights Agreement so that it will terminate automatically at the end of the 2024 MLB season and provides for modifications to the rights fee.”
Even though the Twins, Rangers, and Guardians only signed to a one-year contract, the other nine DSG are still under contract, therefore it is anticipated that they will still be shown until 2025 and beyond.
MLB’s future move is uncertain. It sought the rights to as many teams as possible in order to expand its own local media enterprise. Five of the 12 clubs have digital rights in addition to their linear rights with DSG, as is known to the public. It’s unclear whether digital is included in the three that are re-upping for just 2024.
However, now that Amazon is on board with DSG, Bally Sports’ digital rights sale probably appears much more appealing than it did when the RSN business was only selling Bally Sports Plus, its much panned app.
relating per DSG’s move, “The Debtors are still in communication with MLB and some other clubs regarding the possible settlement of the Motion to Compel as to clubs other than the Rangers.” “Any agreement that is subsequently entered into and approved by the Bankruptcy Court to provide adequate protection and assurance of future performance for the benefit of MLB and its teams will include the Rangers and benefit them equally and ratably.”