A Major League Baseball logo at Angel Stadium in Anaheim, California, May 22, 2022.
Ronald Martínez | fake images
Major League Baseball and the Atlanta Braves have raised issues with the reorganization plan and future viability of Diamond Sports Group, the nation's largest owner of regional sports networks, according to a bankruptcy court filing Friday.
The Braves and MLB said in the objection that they have “serious concerns” with the current plan, as “there is a substantial likelihood that [Diamond Sports] will once again find themselves in financial difficulties and/or in bankruptcy court in the near future.”
The filing noted that both MLB and the Braves have a vested interest in Diamond Sports succeeding with a reorganization plan, but are not convinced the currently proposed one is viable.
A Diamond representative had no immediate comment on the filing. The company has until Wednesday to respond to the objection. Meanwhile, Diamond will seek approval of his reorganization plan before a U.S. bankruptcy judge on Thursday.
MLB and the Braves' concern stems from a lack of information about the restructuring proposal, which consists of 20 documents for a total of 181 pages, according to the filing. Diamond's lawyers have said in court that there are limitations on what they can offer, in part because of confidentiality agreements with the company's distribution partners, such as pay-TV operators.
Additionally, both the league and the Braves have also requested more clarity on what Diamond's proposed business partnership is. Amazon it will look like. Diamond's lawyers have previously said in court that talks with Amazon are still ongoing.
MLB and the Braves are also concerned about confusion over Diamond Sports' direct-to-consumer plan, a strategy that has become more important as more customers abandon traditional cable packages.
This isn't the first time MLB wants more information about Diamond's financial plans. In October, an MLB attorney said in a court hearing that the league wanted additional information about the language used in a recent naming rights deal Diamond reached with FanDuel for the regional sports networks, formerly known as Bally Sports, which owns Diamond.
The Braves are part of a publicly traded company Atlanta Braves Participations after splitting from John Malone Means of freedom in 2023. Malone remains a shareholder in the new company in addition to being president of Liberty Media.
Diamond Sports had previously said it would retain its contract with the Braves as part of its bankruptcy plan, while attempting to renegotiate its contracts with, or cancel, 11 other MLB teams it has deals with.
Friday's objection does not mean the Braves have turned their backs on Diamond for his regional media rights.
As of Thursday, the St. Louis Cardinals and Diamond agreed to the terms of their home rights, and at a court hearing in October, attorneys said Diamond was close to a deal for the Miami Marlins.
On Friday, the Cincinnati Reds said they would abandon their Diamond-owned regional sports network, according to a court filing.
Since then, three of the 11 teams Diamond was trying to rework contracts with have turned to MLB to produce their home games.
