Major League Baseball logo at Angel Stadium in Anaheim, California, May 22, 2022.
Ronald Martinez | Getty Images
Major League Baseball and the Atlanta Braves have raised issues with their reorganization plan and the future capacity of Diamond Sports Group, the nation's largest owner of regional sports networks, according to a bankruptcy court filing Friday.
The Braves and MLB said in the objection that they have “serious concerns” about the current plan, as “there is a significant possibility that (Diamond Sports) will once again find itself 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' success through the reorganization plan, but are not convinced that the currently proposed plan is workable.
A Diamond representative did not immediately comment on the file. The company has until Wednesday to respond to the objection. Meanwhile, Diamond will seek approval of its reorganization plan from a US bankruptcy judge on Thursday.
MLB and the Braves' concern stems from a lack of information about the restructuring proposal, which consists of 20 documents totaling 181 pages, according to the filing. Diamond's lawyers said in court that there were limits on what they could offer in part because of confidentiality agreements with the company's distribution partners, such as pay-TV operators.
Additionally, both the league and the Braves also asked for more clarity on the business partnership Diamond is proposing with Amazon It will look like. Diamond's lawyers 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 become more important as more customers move out of traditional cable packages.
This isn't the first time MLB has wanted more information about Diamond's financial plans. In October, an MLB attorney said at a court hearing that the league wanted additional information about the language used in Diamond's recent naming rights deal with FanDuel for Regional Sports Networks, formerly known as Bally Sports, which Diamond owns.
The Braves are part of a publicly traded company Atlanta Braves Holding After his separation from John Malone Media freedom in 2023. Malone remains a shareholder in the new company as well as chairman of Liberty Media.
Diamond Sports had previously said it would maintain its contract with the Braves as part of its bankruptcy plan, while it attempts to renegotiate or drop its contracts with the 11 other MLB teams it has deals with.
Friday's objection does not mean the Braves have moved away from Diamond regarding their regional media rights.
As of Thursday, the St. Louis Cardinals and Diamond had agreed to terms on their homegrown rights, and at a court hearing in October, lawyers said Diamond was nearing an agreement on the Miami Marlins.
On Friday, the Cincinnati Reds said they would exit their Diamond-owned regional sports network, according to a court filing.
Three of the 11 teams with which Diamond was trying to rework contracts have since turned to MLB to produce their home games.
