In an intriguing turn of events, the bankrupt Diamond Sports Group, which operates regional sports networks through a licensing agreement with Bally, has asked a Houston federal bankruptcy court to approve an amended plan that would erase its Major League Baseball agreements as of December 31, 2024.
This could open the door to a significant shift of MLB teams’ play-by-play to over-the-air television stations.
The revelation comes in an amended Chapter 11 reorganization plan submitted Wednesday (10/2) by counsel at Paul Weiss; Wilmer Cutler Pickering Hale and Dorr LLP; and Porter Hedges.
On page 43, it is noted that, subject to confirmation, DSG will effectuate an “orderly runoff” — a move designed to protect a troubled entity often used by insurance companies — with the consent of all parties involved, requiring debtors to agree that it is in their collective best interests.
If an “orderly runoff” were to transpire, a “wind down” effective date for the National Basketball Association and National Hockey League agreements it has would only occur after the current 2024-2025 seasons for each sport.
In the case of MLB, Diamond and its creditors are being asked to “reject” each of their agreements with the league and its constituent clubs as of the end of the year — leaving the impacted teams with no TV home for the 2025 season.
There is one caveat: SportSouth successor Bally Sports Southeast wants the Atlanta Braves. An amended and restated telecast rights agreement has been crafted, court documents confirm.
A schedule of “rejected executory contracts and unexpired leases” includes the Los Angeles Angels of Anaheim; the Detroit Tigers; the Cleveland Guardians; the Kansas City Royals; the Florida Marlins; the Cincinnati Reds; the St. Louis Cardinals; the Tampa Bay Rays; and a furniture lease agreement with the Arizona Diamondbacks.
