MLB to Overhaul Broadcasting Amid Diamond Sports Group Bankruptcy

The Major League Baseball (MLB) organization announced a significant shift in its broadcasting strategy due to the bankruptcy situation involving Diamond Sports Group. Effective next season, MLB will assume the production and distribution responsibilities for local games of several teams, including the Cleveland Guardians, Milwaukee Brewers, and Minnesota Twins, removing them from Diamond Sports Group’s Bally Sports platform.

In a concurrent announcement, MLB confirmed plans to explore alternative local media options for the Texas Rangers starting in the 2025 season. This move comes amidst Diamond’s restructuring under Chapter 11 bankruptcy, as the company aims to streamline its operations by shedding certain assets. Recently, the Arizona Diamondbacks and San Diego Padres also ended affiliations with Diamond, who lost broadcasting rights last year.

MLB has been expanding its local-media division since the onset of Diamond’s financial difficulties. The intent is to enhance cable and satellite distribution agreements while providing local streaming options via MLB.tv. By taking control of broadcasting rights and breaking free from territorial constraints, MLB aims to eliminate blackouts and increase game access for fans. This is forecasted to significantly boost the reach of games for the Guardians and Twins, who lacked direct-to-consumer streaming options until now, with expected increases in reach of 235% and 307%, respectively.

Currently, the Guardians, Twins, Brewers, and Rangers are operating on contracts with Diamond that are nearing expiration. Simultaneously, eight other teams remain uncertain about their broadcasting futures as Diamond seeks renegotiated terms under a reorganization plan. A legal ruling on Diamond’s restructuring is scheduled for mid-November 2023, in Houston.

MLB Deputy Commissioner Noah Garden emphasized the league’s commitment to reaching fans by removing accessibility barriers: “With the media landscape continuing to evolve, Major League Baseball is committed to serving our fans by ensuring they can see their favorite Clubs, removing blackouts where we can, and ultimately growing the reach of our game,” Garden stated.

As local broadcasting switches to MLB’s management, fans may notice minimal changes in broadcast quality and coverage. Although visually and technically, broadcasts might show subtle differences, teams will retain their announcers, who are primarily employed by the franchises themselves. MLB plans to include new viewing features such as umpire cameras and live insights from the MLB Replay Operations Center.

The potential impact of this shift on team revenues is yet to be fully understood, as MLB broadcasting rights fees are generally less than those previously paid by Diamond. However, MLB’s revenue-sharing mechanisms, paired with substantial national broadcasting agreements with networks like ESPN and Apple TV+, have bolstered overall league revenues, setting a financial record in 2022.