Atlanta Braves fans will continue to receive Braves broadcasts on Bally Sports after its parent company Diamond Sports, files for Chapter 11 Bankruptcy.
Yesterday, New York Post reporter Josh Kosman reported that Diamond Sports was expected to file for bankruptcy March 17, but a few minutes ago, the Athletic's Daniel Kaplan reported Diamond submitted its Chapter 11 filing today.
Diamond Sports, the parent of Bally Sports Regional Networks, filed for Chapter 11 bankruptcy protection on Tuesday.
Many had expected Diamond to dump certain RSNs that were not as economical, and for now that does not appear to be the case.
According to Kosman’s report, the Trustees were set to reject the contracts of the Padres, Guardians. Reds and Diamondbacks with MLB ready to step in to offer streaming for those teams. But Diamond's statement said all 19 RSN would continue to operate under their control., at least for now.
(Diamond will continue broadcasting games . . . across the country with the sports and teams they love. . . we expect to execute a prompt and efficient reorganization and to emerge from the restructuring process as a stronger company.”
All of Diamond's affiliates should submit individual Chapter 11 filings, but Arizona is the only one to file so far. The Arizona filing indicated they were owed nearly $31M, so keeping them operating under the Bally banner is optimistic.
MLB Ready To Take Over If (When) Needed
At the Grapefruit League meeting in February, commissioner Rob Manfred said MLB wants a streaming service that goes beyond MLB.TV's offering. He went on to say that ideally, the new service would allow fans to watch any team's games anywhere.
One of the most important things I’ve learned in life is to ignore most of what people say. I watch what they do instead.
MLB’s actions so far support that goal. In January they hired four former RSN executives to give the league experience leadership should MLB have to take over as a result of the bankruptcy, Kosman's report said the league asked about taking over of all Diamond's baseball rights.
MLB recently tried to acquire the rights to all 14 teams that Diamond broadcasts, the two sources said. “They said no,” a source said.
The Atlanta Braves are a big draw after reaching postseason play for five straight years. / Jerome Miron-USA TODAY Sports
Atlanta Braves Success Makes Them a Keeper
The Braves Franchise has a history of financial issues going back to the turn of the century, but the guiding hand of Liberty Media’s planners created a new revenue stream from the Battery, and the club’s recent success increased ad income for the teams and Bally.
In January, we wrote that the Braves restructured their TV deal and would see broadcast revenue increase to around $100M this year. The Trustees’ unwillingness to part with the Braves indicates they plan to honor the deal, and that shouldn’t come as a surprise.
Teams like the Cubs, who air their games on a network they control, aren't likely to give up that income, and Rogers will hold on to broadcast rights for Toronto.
That’s a Wrap
The bad news of the idiocy of blackouts remains. Somehow, rights owners can’t get it through their heads that they gain nothing from blackouts.
The good news is Atlanta Braves fans will have access to the team as before, with a better crew in the booth, and that’s a good thing.
