The Major League Baseball logo at Angel Stadium on May 22, 2022 in Anaheim, California.
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Major League Baseball and the Atlanta Braves have raised questions about the restructuring plans and future viability of Diamond Sports Group, owner of the nation’s largest regional sports network, according to a bankruptcy court filing Friday.
The Braves and MLB said in their appeal that they have “grave concerns” with the current plan, calling it “a serious concern.” [Diamond Sports] In the near future, we will find ourselves in financial hardship and bankruptcy court again. ”
The filing noted that both MLB and the Braves have a vested interest in Diamond Sports’ successful turnaround plan, but are not convinced that the currently proposed plan is viable.
Representatives for Diamond did not immediately comment on the filing. The company has until Wednesday to respond to the objection. Meanwhile, Diamond plans to ask a U.S. bankruptcy judge on Thursday to approve its reorganization plan.
According to the filing, MLB and the Braves’ concerns stem from a lack of information about the proposed restructuring, which consists of 20 documents totaling 181 pages. Diamond’s lawyers said in court that there are limits to what it can provide, due in part to non-disclosure agreements with its distribution partners, including pay-TV operators.
Additionally, both the league and the Braves are asking for more clarity on the nature of Diamond’s proposed commercial partnership. Amazon It will look like this. Diamond’s lawyers previously told the court that talks with Amazon were still ongoing.
MLB and the Braves are also concerned about confusion surrounding Diamond Sports’ direct-to-consumer plan, a strategy that has become increasingly important as more customers abandon traditional cable bundles.
This isn’t the first time MLB has asked for more information about Diamond’s financial plans. In October, MLB lawyers argued in a court hearing that language used in a recent naming rights agreement signed with FanDuel for the Diamond Inc.-owned regional sports network (formerly known as Bally Sports) The league said it is seeking additional information.
The Braves are part of a publicly traded company. atlanta braves holdings after being Split Departing from John Malone’s liberty media In addition to being chairman of Liberty Media, Mr. Malone remains a shareholder in the new company.
Diamond Sports previously announced that while it would maintain its contract with the Braves as part of its bankruptcy plan, it intended to renegotiate or terminate contracts with 11 other MLB teams.
Friday’s objections do not mean the Braves have turned their backs on Diamond over local media rights.
As of Thursday, the St. Louis Cardinals and Diamond had agreed to terms regarding local rights, and at a court hearing in October, lawyers said the Diamonds and the Miami Marlins were close to an agreement.
The Cincinnati Reds announced Friday that they are leaving the Diamond Inc.-owned regional sports network, according to court filings.
three Of the 11 teams Diamond wanted to redo their contracts with, it then turned to MLB to produce local games.
