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MLB’s Patience Wearing Thin As DSG Eyes November Bankruptcy Exit

  • MLB raises further concerns about the Bally Sports parent and rights fees for the 2025 season.
  • DSG responds that all current contractual obligations in baseball have been honored.
Brett Davis-USA TODAY Sports

Diamond Sports Group is now targeting early- to mid-November to emerge from bankruptcy. Major League Baseball, however, still has its doubts about the Bally Sports parent company’s ability to do that. 

Less than two weeks after DSG completed revised rights deals with the NBA and NHL, the regional sports network operator received formal approval of those agreements, as well as a rejection of pacts with the Mavericks and Pelicans—something to which both of those NBA teams have consented.

The deals provide a key dose of certainty for 22 teams across the two leagues still within the DSG portfolio for at least the 2024–2025 season. The new potential timetable for DSG to receive confirmation of its reorganization plan is also a shift from a prior target of late July that was delayed amid intensifying negotiations with the NBA and NHL, and also with Comcast—with the pause ultimately resulting in a trio of new pacts.

But MLB attorney James Bromley believes the time is now to create similar certainty for next year for the 12 MLB teams carried by DSG.

“We are very happy that the fans of the National Basketball Association and the National Hockey League will be able to watch their teams,” Bromley said during a 70-minute status conference for the case held Tuesday in U.S. Bankruptcy Court. “It is certainly in Major League Baseball’s interest to have its fans watch its games. And so many sports fans are overlapping fans of the different leagues. We are happy that is going to occur. But the process by which we’ve gotten here has raised concerns, and the process going forward, which is opaque at best, raises even greater concerns.”

The league has yet to formally object to a proposed DSG reorganization plan. But it’s clear MLB’s patience is wearing thin after continued turbulence surrounding the company dating to 2021, a period that has since involved the rejection of team media rights in San Diego and Arizona, protracted rights negotiations in several other MLB markets, and continued uncertainty looking ahead to next season

Because of that, this past weekend MLB filed a reservation of its rights with the court, essentially putting DSG and the court on notice regarding its misgivings. During the hearing, Bromley called the NBA and NHL deals “a Band-Aid” amid larger challenges for both the company and the RSN industry. 

“This is now the fourth season in a row that Major League Baseball is heading into the offseason with a complete lack of information and clarity with respect to what’s going to happen,” Bromley said. “We are not months and months away from next year. We are there today. If the debtors are unable or unwilling to provide [rights fees for 2025], it will be necessary to find replacement broadcasting for them. To do that on any other timetable than this fall, it’s going to create substantial costs.”

Payments Made

DSG responded that many of MLB’s concerns are misplaced and called the NBA and NHL deals “a significant milestone” in pursuit of its reorganization. The company also pointed to its record of having already paid more than 90% of its total rights fees owed for the 2024 MLB season, all on time, with no issues anticipated for the remaining portion. DSG added that all current contractual protections to MLB remain in place.

“We are not looking to elongate this. We, too, have been at this quite a long time,” said Andrew Goldman, an attorney for DSG. “As quickly as we can emerge [from bankruptcy], we would like to emerge.”

MLB acknowledged DSG’s response—but only to a point. 

“I don’t know that congratulations are necessary to thank folks for complying with their contractual obligations, but we do appreciate it,” Bromley said. 

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