MLB broadcast landscape hangs in the balance as Diamond Sports' bankruptcy hearing faces delay

The ongoing bankruptcy court hearing regarding Diamond/Bally Regional Sports Networks (RSNs) and Major League Baseball has faced another delay, extending the wait for a resolution to January 19. The sides have been engaged in mediation and negotiations, contributing to the postponement. Despite the delay, it’s essential to note that this does not necessarily indicate a negative turn in the process or confirm a finalized deal.

The complexity of the situation revolves around Diamond Sports, a Sinclair Broadcasting subsidiary, which filed for Chapter 11 protection last March amid the challenging landscapes for RSNs due to cord-cutting and declining advertising revenue.

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Amazon had made an offer to acquire the broadcasting rights of 11 MLB teams from Diamond

Recently, Amazon proposed a lifeline of around $150 million to Diamond Sports, intending to invest in the company and take over streaming broadcasters for 11 baseball teams, including the Texas Rangers, Atlanta Braves, and St. Louis Cardinals.

However, MLB commissioner Bob Manfred rejected Amazon’s proposal ahead of the bankruptcy hearing. The rejection was attributed to Amazon’s desire for a streaming deal lasting more than one year, with Manfred insisting on handling any digital deal with MLB directly.

MLB Commisioner Rob Manfred has denied the offer from Amazon to purchase the broadcasting rights from Diamond Sports.

At the upcoming bankruptcy hearing, MLB plans to present Diamond with a deal that reduces media rights fees for three of the 11 teams in exchange for MLB obtaining digital rights for all Diamond teams in 2025. While Diamond could still consider negotiating with Amazon, MLB seems inclined to strike its streaming deals with major platforms like Amazon or Apple from 2025 onward.

As the baseball landscape faces potential shifts in digital rights and streaming agreements, the outcome of the ongoing negotiations will significantly impact the broadcast landscape for the 2024 MLB season on the Bally network. The wait continues for a resolution in this intricate web of negotiations and court proceedings.