The Cincinnati Reds have agreed to end their local broadcast deal with regional sports network (RSN) operator Diamond Sports Group (DSG), whose proposed reorganisation plan has been objected to in court by Major League Baseball (MLB).
Confirmed:
- Reds and DSG part ways after failing to reach renegotiated deal
- MLB team agrees to sell its 20 per cent stake in FanDuel Sports Network Ohio for US$1, according to a court filing
Context:
Alongside the Los Angeles Angels, St Louis Cardinals, Kansas City Royals and Miami Marlins, the Cincinnati Reds were one of five MLB franchises who had a joint venture agreement with DSG, which filed for bankruptcy protection in March 2023.
The Reds’ decision to cut ties with DSG means the team will need a new local broadcast partner for next season. Although not confirmed, the likelihood is that the Reds will join other MLB franchises impacted by DSG’s bankruptcy in having their broadcasts produced and distributed by the league’s local media division, which is already due to provide that service for at least six clubs in 2025.
As part of its bid to exit chapter 11 bankruptcy in the US, it was revealed last month that DSG intends to drop coverage of 11 of the 12 MLB franchises it carried during the 2024 campaign unless those clubs accept revised deals.
Since then, the Miami Marlins and St Louis Cardinals have agreed to revised deals with DSG, while the rights to Milwaukee Brewers, Minnesota Twins and Cleveland Guardians games have been picked up my MLB.
However, the Reds’ filing came after MLB and the Atlanta Braves, who are the only team not to have their contract amended or renegotiated, filed an objection to DSG’s reorganisation plan.
MLB previously cast doubt on DSG’s bankruptcy exit plan alongside the National Hockey League (NHL) and National Basketball Association (NBA), but this is the first time it has formally objected to the company’s reorgansation proposal.
Comment:
‘Based on the current inadequate record, the Braves and MLB have grave concerns that, if the plan is confirmed, there is a substantial likelihood that the debtors will find themselves once again in financial distress and/or bankruptcy court in the near future,’ MLB and the Braves said in their joint filing. ‘The debtors’ inability to demonstrate plan feasibility also calls into question whether the debtors can demonstrate adequate assurance of future performance to assume the Braves’ executory contract.’
Coming next:
A hearing is set to begin on 14th November to determine whether to approve DSG’s reorganisation plan. The outcome will have a significant impact on the Detroit Tigers, Royals, Angels and Tampa Bay Rays, the other MLB teams carried by Diamond in 2024 whose broadcast futures are yet to be decided.
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