MLB's Future in Limbo as Diamond Sports Group Navigates Bankruptcy Proceedings and Broadcasting Plans

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18/10/2024 19h47

### MLB's Future Ties with Diamond Sports Group Remain Uncertain Amid Bankruptcy Proceedings

Diamond Sports Group has confirmed that two Major League Baseball teams, the Atlanta Braves and the Miami Marlins, will be included in their 2025 broadcasting plans, provided the company successfully navigates its bankruptcy proceedings. The revelations came during a court session on Friday. However, the futures of six other MLB teams that were previously televised by Diamond remain in flux. These teams include the Cincinnati Reds, Detroit Tigers, Kansas City Royals, Los Angeles Angels, St. Louis Cardinals, and Tampa Bay Rays.

"There are two teams," stated Joe Graham, Diamond Sports Group's attorney, in federal bankruptcy court. He also mentioned ongoing negotiations with additional teams to potentially continue their broadcasting partnership. James Bromley, representing Major League Baseball, confirmed at least two teams but emphasized MLB's intent to challenge Diamond's continued association with the Braves.

During the Friday hearing, Diamond sought approval for a new multi-year naming rights agreement with FanDuel, starting this NBA and NHL season, and extending automatically from May 1, 2025. This deal replaces the current Bally branding on Diamond's channels. The agreement involves FanDuel paying a fixed fee plus a minimum annual media spend, with an option to acquire up to 10% equity in the reorganized company.

Bromley sharply criticized Diamond for not disclosing sufficient details about the FanDuel deal earlier, expressing particular concern over the integration of a sports betting company with MLB content. "It is critical to Major League Baseball and its clubs that they be in the middle of any conversations with respect to the integration of online sports betting with their sports content," Bromley argued.

A contentious exchange between Bromley and Judge Chris Lopez ensued, primarily focusing on MLB's demands for more information about the deal. Ultimately, Lopez instructed Diamond to share relevant portions of the agreement with MLB for scrutiny.

The situation is expected to gain more clarity by mid-November, as a two-day confirmation hearing is scheduled to begin on November 14. Bromley has indicated that MLB will formally object to Diamond's reorganization plan during this hearing. Meanwhile, negotiations continue to sort out Diamond’s relationships with various MLB teams.

With the new naming rights deal, Diamond's 16 regional sports networks will be rebranded under the FanDuel Sports Network banner. Diamond's CEO, David Preschlack, and FanDuel's President of Sports, Mike Raffensperger, both highlighted the strategic advantages this collaboration offers for enhancing fan experiences and leveraging brand visibility.

As the dynamics between Diamond Sports Group and Major League Baseball continue to evolve, the fate of several teams and their broadcasting futures hang in the balance, awaiting the critical decisions that will emerge from the upcoming court sessions.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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