MLB, Braves object to Diamond Sports reorganization plan

Major League Baseball and the Atlanta Braves have raised issues with the reorganization plan and future viability of Diamond Sports Group, the country’s largest owner of regional sports networks, according to a Friday bankruptcy court filing.

The Braves and MLB said in the objection that they have “grave concerns” with the current plan, as “there is a substantial likelihood that [Diamond Sports] will find themselves once again in financial distress and/or bankruptcy court in the near future.”

The filing noted that both MLB and the Braves have a vested interest in Diamond Sports succeeding with a reorganization plan, but they are not convinced that the one currently proposed is viable.

A representative for Diamond didn’t immediately comment on the filing. The company has until Wednesday to respond to the objection. Meanwhile, Diamond will seek approval of its reorganization plan from a U.S. bankruptcy judge on Thursday.

MLB and the Braves’ concern stems from a lack of information about the restructuring proposal, which consists of 20 documents for a total of 181 pages, according to the filing. Diamond attorneys have said in court there are limitations to what they can provide in part because of the confidentiality agreements with the company’s distribution partners, such as pay TV operators.

In addition, both the league and Braves have also requested more clarity on what Diamond’s proposed commercial partnership with Amazon will look like. Diamond attorneys have previously said in court that discussions with Amazon are still ongoing.

MLB and the Braves are also concerned about confusion over Diamond Sports’ direct-to-consumer plan, a strategy that has only become more important as more customers exit from traditional cable bundles.

This is not the first time MLB has wanted more information on Diamond’s financial plans. In October, an MLB attorney said in a court hearing that the league wanted additional information on the language used in a recent naming rights agreement deal Diamond struck with FanDuel for the regional sports networks, formerly known as Bally Sports, that Diamond owns.

The Braves are part of publicly traded company Atlanta Braves Holdings after being split off from John Malone’s Liberty Media in 2023. Malone is still a shareholder in the new company in addition to being chairman of Liberty Media.

Diamond Sports had previously said it will retain its contract with the Braves as part of its bankruptcy plan, while attempting to renegotiate its contracts with 11 other MLB teams it has deals with, or drop them.

The Friday objection does not mean that the Braves have turned away from Diamond for their regional media rights.

As of Thursday, the St. Louis Cardinals and Diamond agreed to terms for their local rights, and in an October court hearing, attorneys said that Diamond was nearing an agreement for the Miami Marlins.

On Friday, the Cincinnati Reds said they would exit their regional sport network owned by Diamond, according to a court filing.

Three of the 11 teams that Diamond was attempting to rework contracts with have since turned to MLB to produce their local games.