Bally Sports regional networks may see 11 MLB teams removed by Diamond Sports.

• The Atlanta Braves are the only Major League Baseball team that Diamond Sports plans to keep on its Bally Sports regional networks.
• During its ongoing bankruptcy process, Bally Sports networks have been dropping teams. Specifically, the San Diego Padres and Arizona Diamondbacks left their regional sports networks last year.
• Diamond Sports' attorney is in negotiations with individual clubs to maintain the rights of MLB teams for its networks.

Major League Baseball is out of here.

Diamond Sports, the owner of Bally Sports-branded regional sports networks, announced on Wednesday that it will remove all Major League Baseball (MLB) teams from its channels except for the Atlanta Braves.

Bally Sports has over a dozen networks in the US, and Diamond has contacted all 11 of its MLB teams, including the Cincinnati Reds, Cleveland Guardians, Detroit Tigers, Kansas City Royals, Los Angeles Angels, Miami Marlins, Milwaukee Brewers, Minnesota Twins, St. Louis Cardinals, Tampa Bay Rays, and Texas Rangers, to discuss and propose new contracts for the future of MLB on their networks.

On Wednesday, a Diamond attorney presented comments to a U.S. bankruptcy judge during an update on the company's ongoing bankruptcy proceedings and efforts to finalize a reorganization plan.

Some teams' contracts were already set to expire this season, and some contracts are not being determined through bankruptcy proceedings, a Diamond spokesperson stated.

The postseason for MLB has started, while the regular season ended earlier this week. Primarily, regional sports networks broadcast regular-season games.

"Andrew Goldman, Diamond attorney, stated on Wednesday that our preferred approach is to bring as many teams into the reorganized company's fold as possible, rather than rejecting them."

The individual clubs are still in negotiations with the company, but the discussions with MLB's Commissioner's Office have ended.

On Wednesday, MLB's attorney James Bromley expressed disappointment to the bankruptcy judge that the league is being misled, stating that "some of our clubs are being left out in the cold again." A spokesperson for MLB declined to comment.

Diamond had previously alerted the league about this outcome in August, stating it was a possibility if MLB rejected his latest proposal, as Goldman reported.

Curveball

The pay-TV business has been negatively impacted by cord-cutting, resulting in fewer subscribers for regional sports networks, which were once a profitable business model for teams and leagues.

Since acquiring the business from Disney in 2019, Diamond has struggled with a heavy debt load, which ultimately led to the owner of the largest portfolio of regional sports networks filing for bankruptcy in March 2023.

Diamond's legal team has been attempting to adjust the rights payments to reflect market rates, which has led to the rejection of contracts by Diamond. As a result, several teams have secured new TV and streaming deals.

The NBA and NHL raised doubts about the feasibility of Diamond's business, specifically before the upcoming seasons that start this month.

On Wednesday, a Diamond attorney declared that the company's ability to file an amended reorganization plan marked a "watershed moment." Although Diamond is working towards exiting bankruptcy protection, there is still a possibility of winding down the business. However, attorneys stated that the company has promised the NBA and NHL that they will honor their contracts until the end of the season.

"A Diamond spokesperson announced that the company has filed a baseline plan to emerge from bankruptcy as a viable business before year-end. The spokesperson also stated that they have delivered proposals to their MLB team partners and are in discussions around go-forward plans. They believe that their linear and digital offerings have created the best economic and fan-friendly engine for all of their team partners."

Diamond's tussles with MLB began before the filing.

For some time, Diamond had been attempting to acquire the streaming rights for all MLB teams that are broadcast on its networks without success.

The San Diego Padres and Arizona Diamondbacks left their Bally Sports networks last year, and the league started producing and distributing the games on pay-TV bundles and MLB TV.