Major League Baseball and a bankrupt regional broadcaster are on a collision course over payments for media rights that would determine the course of future revenue streams for teams across the league, The Post has learned.
Diamond Sports – which operates about half of the regional sports networks or RSNs across the US under the name Bally’s and filed for bankruptcy in March – is trying to cut fees for a number of the 13 MLB teams whose local broadcasting rights it holds as a cable operator. the autumn is accelerating.
Amongst them are the NL’s leading West Arizona Diamondbacks, certainly one of baseball’s biggest surprises with 4 players on the National League roster for Tuesday’s All-Star game in Seattle.
Diamond is near negotiating a 20% discount on a five-year cope with the Diamondbacks, which might also give the broadcaster helpful streaming rights it doesn’t currently own, The Post sources say.
“They’ve made a deal that is way more attractive to Diamond,” said a source with direct knowledge of the situation.
Nonetheless, MLB commissioner Rob Manfred threatens to dam Diamond’s plans if the Diamondbacks deal is presented because it stands at a bankruptcy court hearing scheduled for July 17, sources say.
![#7 Corbin Carroll of the Arizona Diamondbacks scores in Gabriel Moreno's seventh-inning sacrificial flight against the Colorado Rockies at Coors Field on April 28, 2023 in Denver, Colorado.](https://nypost.com/wp-content/uploads/sites/2/2023/06/carroll.jpg?w=1024)
Manfred, who has the authority to approve all media deals, has been saying for months that MLB will take over local broadcasts if Diamond rejects the contracts and that other owners will help compensate teams for lost revenue.
Indeed, the plan doesn’t sit well with owners of huge market teams just like the Yankees, Mets, Cubs, Dodgers and Red Sox – all of whom have their very own regional broadcasting deals. While team owners are reimbursing other clubs for 80% of lost fees for Diamond media rights, they’re only supporting it this season, sources say.
“I have not been paid for the last 12 months,” the MLB owner told The Post.
Diamond, who signed a 20-year, $1.5 billion cope with Arizona in 2015, is now offering 80% of what the Diamondbacks earn in a contract for next 12 months, then the share drops even further over the subsequent few years, in response to sources.
![Manfred looks concerned.](https://nypost.com/wp-content/uploads/sites/2/2022/10/GettyImages-1437580256.jpg?w=1024)
This puts Manfred in trouble for blocking a cope with the Diamondbacks because the team could find themselves in worse financial distress next 12 months without Diamond’s lowered bid, the sources say.
“I do not believe Rob will reject the Arizona deal. I believe it’s a complete bluff,” said the MLB owner.
MLB declined to comment.
A spokesman for Diamond said: “We’re in talks with the Diamondbacks but haven’t yet reached an agreement.”
So long as Diamond stays bankrupt, which is more likely to last until next 12 months, he can reject media rights deals.
Diamond’s senior debt costs lower than 80 cents on the dollar and it is speculated the corporate shall be forced into liquidation inside the subsequent 12 months if Manfred doesn’t conform to a restructuring plan, sources say.
![Map of Sinclair sports teams.](https://nypost.com/wp-content/uploads/sites/2/2023/03/NYPICHPDPICT000008292171.jpg?w=1024)
In keeping with these sources, Diamond’s biggest hopes for getting out of bankruptcy are to get more streaming rights for his national service.
The corporate makes money from perhaps half of the 13 MLB media rights deals it has, including the Braves and Marlins, and is willing to pay fees to those clubs unchanged, the sources say.
But when it fails, MLB could seize the media rights or attempt to sell them in a bundle to tech giants which can be in the live sports wars like Amazon Prime and Apple+. Each currently have broadcasting deals.
MLB had ambitions to launch its own nationwide streaming service that might broadcast the games of all 30 teams. The owners offered to purchase Diamond this spring in bankruptcy court for about $350 million, including about $175 million that Diamond had on its balance sheet.
Thus far, the deal has not been approved, in response to two sources near the situation.
![Elly De La Cruz (44) celebrates in the dugout after scoring a goal.](https://nypost.com/wp-content/uploads/sites/2/2023/07/2023-07-08T225559Z_1535651483_MT1USATODAY21010903_RTRMADP_3_MLB-CINCINNATI-REDS-AT-MILWAUKEE-BREWERS.jpg?w=1024)
The MLB owner said the commissioner was given a short leash in the Diamondbacks negotiations.
“No person believes Manfred will create the MLB network,” said the MLB owner.
Further negotiations of the Diamonds with other clubs are going down on board.
Diamond paid the Minnesota Twins AND Texas Rangers ongoing fees for this season, although sources say these are contracts that may must be redone next season.
Diamond has too he only paid the Cleveland Guardians until July and has payment due July 15 for the NL Central-leading Cincinnati Reds.
Earlier this 12 months, Diamond turned down the rest of his expensive contract with the San Diego Padres. MLB has picked up the printed of its home games.