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Tuesday, September 16, 2025

MLB Withdraws Objection, Clearing DSG’s Path Out of Bankruptcy

The league has long been a primary opponent of the bankrupt regional sports network operator, but has now dramatically changed its stance.

Scott Taetsch-Imagn Images

Diamond Sports Group’s path to emerge from bankruptcy just cleared substantially as its biggest obstacle, Major League Baseball, withdrew its objection late Wednesday to the company’s reorganization.

The move arrived less than 24 hours before a climatic U.S. Bankruptcy Court hearing will begin Thursday in Houston—a session aimed at confirming the regional sports network operator’s restructuring plan after nearly two years of bankruptcy. 

A court filing to provide notice of the withdrawal did not detail the reasoning for the dramatic change in stance. But the move clearly signals a heightened sense that MLB believes Diamond can be a viable company going forward, and is likely to help hasten Thursday’s hearing.

Five days ago, MLB filed the objection, particularly objecting to the company’s assumption of its Braves rights deal and claiming then that there was “a substantial likelihood that the debtors will find themselves once again in financial distress and/or bankruptcy court in the near future.” DSG had until Wednesday to respond to that objection, but ultimately, there was nothing to which to answer.

Since then, however, DSG has continued to pursue a variety of new business in preparation for its post-bankruptcy life, including a finalized distribution deal with Amazon and the development of single-game streaming options, and is finalizing reworked rights deals with additional pro teams. 

A Sport Divided?

Recently amended rights deals between several individual MLB clubs and DSG, such as one with the Cardinals and others being finalized with the Angels and Marlins, presented a rather different viewpoint on the company than what was coming from league offices.

Another late Wednesday filing with the court revealed even more changes, as DSG disclosed additional “amended telecast rights agreements with the Atlanta Braves, Detroit Tigers, and Tampa Bay Rays.” That now brings the company’s baseball roster for 2025 up to at least six teams, and also revealed for the first time changes in the Braves’ deal, as it said last week in a quarterly earnings call that it had been paid in full up to now. 

The MLB pivot alters, at least to some degree, a long period of acrimony between the league and DSG, with commissioner Rob Manfred and league attorneys taking frequent shots at the company since the initial filing in March 2023 for Chapter 11 bankruptcy protection. But even with this latest move, there is still concern within MLB regarding the company’s long-term future.

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