April is synonymous with so many things – spring flowers, the Masters Tournament in Augusta, Georgia, and of course, the return of America’s pastime, Major League Baseball (MLB).  However, MLB fans of several teams are likely unaware that where and how they will be able to watch or stream live sports games in the future is subject to an extremely complex ongoing Chapter 11 bankruptcy case in the Southern District of Texas.

Diamond Sports Group, LLC, et al. and certain related entities (collectively, “Diamond”) filed Chapter 11 bankruptcy on March 14, 2023. According to Diamond’s Chapter 11 Disclosure Statement filed on Feb. 29, Diamond is the “leading provider of local sports programming in the United States.” Diamond operates regional sports networks across the county and has the exclusive multi-year rights’ agreements to air the games of 14 MLB teams. Generally, these MLB teams grant Diamond the right to telecast all local games (that are not selected for exclusive national telecast) within a specified territory in exchange for annual payments to the MLB teams. Diamond broadcasts the games via wholly owned Regional Sports Networks (RSNs) that operate under the trade name “Bally Sports” – Diamond has a naming-rights’ agreement with Bally’s Corp. to use Bally’s as the trade name for the RSNs. Diamond also maintains minority investments in Marquee Sports Network, the local broadcast network for the Chicago Cubs, and the YES Network, the local broadcast network for the New York Yankees.

Since the March bankruptcy filing date, Diamond has taken several significant actions that have essentially kept the status quo for the 2024 season but has provided little clarity on the 2025 season and beyond. A summary of these actions is as follows:

• During the 2023 season, Diamond ceased paying the required broadcast fee to the San Diego Padres and Arizona Diamondbacks and therefore, lost the right to broadcast games for those teams. The 2024 season games for these teams will only be available via paid streaming subscriptions through MLB or the teams’ websites. Neither team has found a permanent cable or satellite TV provider though local networks in the San Diego and the Phoenix metro areas may offer local broadcasts.
• In a significant development in January, Diamond reached a tentative agreement with Amazon, wherein Amazon will seek to be a minority investor in the reorganized debtor; in exchange, Amazon will have streaming rights for certain games and teams. For the 2024 season, however, Amazon will only stream select games for five MLB teams: the Milwaukee Brewers, Miami Marlins, Tampa Bay Rays, Kansas City Royals, and Detroit Tigers. The full extent of Amazon’s future role with Diamond – and Amazon’s role in streaming MLB games – is not clear and is likely subject to future developments in the bankruptcy case and the confirmation of Diamond’s proposed Chapter 11 plan.
• Diamond (through the Bally RSNs) will continue to broadcast Braves, Guardians, Twins, Rangers, Tigers, Brewers, Rays, Reds, Royals, Angels, Marlins, and Cardinals games for the 2024 MLB season. At this time, it doesn’t appear that Diamond’s bankruptcy will have major impacts on the YES Network or Marquee, and Yankees and Cubs games will continue to air on those networks for the foreseeable future.
• On Feb. 29, Diamond filed its proposed Chapter 11 Plan of Reorganization and proposed Chapter 11 Disclosure Statement. Among other things, Diamond’s proposed plan seeks to approve Amazon’s investment in the reorganized debtor and to terminate Diamond’s naming-rights’ agreement with Bally’s Corp. The Bankruptcy Court will hold a hearing on the adequacy of the disclosure statement on April 17. A hearing on the confirmation of Diamond’s Chapter 11 Plan has not been set.

Essentially, as of early April, Diamond (through the Bally RSNs) will continue to air games for the 2024 season. However, the MLB media landscape for 2025 and beyond is entirely unclear.   With Diamond likely terminating the Bally’s Corp. naming rights’ agreement, the Bally’s RSNs will likely go extinct after the 2024 season, leaving 14 MLB teams (a little less than half of the MLB’s 30 teams) without a regional sports network starting in 2025. Will Amazon acquire the streaming rights to some or all of these teams? Will the MLB teams or MLB itself offer paid streaming subscriptions like the Padres and Diamondbacks?  Or, will Diamond find a new naming-rights’ partner and resurrect the RSNs under a different name?   

While the answers to these questions are unknown currently, what is certain is that the days of the average fan turning on the cable box and easily finding a regional MLB broadcast are likely over. The MLB media landscape appears to be headed toward a disjointed mix of streaming and traditional regional broadcasts. Indeed, the future may well depend on the outcome of the rare interaction between bankruptcy and baseball unfolding in the Diamond Sports’ bankruptcy.

[1] This article is not intended to provide a detailed legal analysis of the Diamond Sports bankruptcy, but rather is intended to provide an entertaining look at the rare interaction between a complex bankruptcy case and professional sports. All Court filings can be accessed for free at https://cases.ra.kroll.com/DSG/. Please consult an attorney if you need legal assistance regarding any aspect of the Diamond Sports case.  

[2] Those teams are the Arizona Diamondbacks, Detroit Tigers, Miami Marlins, Tampa Bay Rays, Kanas City Royals, St. Louis Cardinals, Milwaukee Brewers, Minnesota Twins, Cincinnati Reds, Cleveland Guardians, San Diego Padres, LA Angels, Atlanta Braves, and Texas Rangers. Diamond has a minority ownership interest in the entities that broadcast Chicago Cubs and New York Yankees games.   

[3] Regional broadcasts for the following MLB teams are operated by networks that are not subject to the Diamond Sports bankruptcy: Chicago White Sox, Oakland Athletics, Philadelphia Phillies, San Francisco Giants, Boston Red Sox, Pittsburgh Pirates, Baltimore Orioles, Washington Nationals, Seattle Mariners, Houston Astros, LA Dodgers, New York Mets, Toronto Blue Jays, and Colorado Rockies.

[4] These documents are very complex, and a detailed discussion thereof are beyond the scope of this article.