It was less than a month ago that an embattled amalgamation of regional sports networks received its third nomenclature in five years when FanDuel inexplicably aligned itself with the former Bally’s and FOX Sports channels that have stubbornly tried to survive with a lineup of mostly mediocre mid-size market teams. But the events of yesterday would seem to indicate that even that shaky foundation is already showing cracks.
FRONT OFFICE SPORTS was busy yesterday, as its early evening missive from the triple threat of Eric Fisher, David Rumsey, and Colin Salao updated their readers on the latest salvo that was fired by a clearly ticked off partner:
Major League Baseball levied its biggest broadside yet against Diamond Sports Group on Friday, formally objecting to the proposed reorganization plan of the bankrupt regional sports network operator.
Escalating what has already been nearly two years of rising tensions, the league in a filing with the U.S. Bankruptcy Court specifically called into question DSG’s plan to retain its rights contract with the Braves. After failing to receive a wide range of requested financial documents, MLB also still harbors serious doubts about DSG’s ability to become viable.
“Based on the current inadequate record, the Braves and MLB have grave concerns that, if the plan is confirmed, there is a substantial likelihood that the debtors will find themselves once again in financial distress and/or bankruptcy court in the near future,” the league said in its filing.
The objection arrives six days before DSG is due to go before the court for confirmation of its plan to emerge from bankruptcy.
“Neither Braves nor MLB should be compelled to partner with a business that does not have a realistic roadmap to future operations,” the league added.
The Braves’ ongoing on-field success and their stranglehold on a wide swath of the South even beyond their Atlanta DMA make them perhaps the most appealing entity in a rapidly decaying array of teams and cities that make up Diamond’s holdings. But later in the day, FOS updated their feed with the news that even one of those lesser teams has told them enough is enough:
(T)he (Cincinnati) Reds and Diamond Sports Group consensually terminated their relationship, per a Friday court filing.
The termination could result in the Reds, who are now in need of a new broadcast partner, moving under MLB’s TV umbrella. Diamond Ohio RSN now has just two pro teams — the Cavaliers and Blue Jackets — which industry insiders say could be a breach of the network’s MVPD contracts considering there will be a loss of 150-plus MLB games in 2025. The filing reads: “Although the debtors and the Reds were not able to come to agreement on the terms of a go-forward relationship, the parties were able to agree to the consensual termination of their relationship in a matter that suits the needs of all the interested parties.”
The Reds may have a somewhat more limited fan footprint and a much less successful team than the Braves (they have not played in a full-season post-season series since 2012 and have not won one since they won the World Series in 1990).But they happen to reside in the home market for Scripps Sports, which has successfully brokered several new alliances of over-the-air and digital broadcast stations and teams in markets such as Las Vegas and Miami and just happen to own an ABC affiliate that would eagerly dedicate a subchannel with better branding to their hometown team. If they actually were competitive, pre-empting Shark Tank reruns on the main channel over the summer isn’t out of the question, either.
Aside from the existential crisis for existence that is emerging in Ohio (the division-winning Cleveland Guardians already bailed on the sister Great Lakes channel last month), what’s left of those even willing to stay in business with Diamond is anything but a compelling list. The FOS troika offered up this reminder:
As of now, only the Braves, Cardinals, and Marlins have any assurance of airing on FanDuel Sports Network in 2025. The objection also arrived one day after DSG agreed to a reworked rights deal with St. Louis. The local broadcast fate of the Angels, Rays, Royals, and Tigers is still uncertain as the situation continues.
With all due respect to the surprising playoff teams that emerged in Kansas City and Detroit, their respective revenue bases and degree of national relevance are modest at best. And with the looming reality that one way or another their media rights fees will greatly diminish, their ability to aggressively compete for free agents and long-term commitments to their homegrown talent is going to be compromised. MLB may be willing to provide them with an infrastructure to seamlessly accommodate their fans, but not with a blank check in the way that FOX did in stronger, less fragmented times.
Both investors and sports fans in general are eagerly awaiting these outcomes. Baseball’s annual winter-long battle for top uncommitted talent is already underway, and the biggest names on the market are almost unilaterally being connected to the franchises who have managed to avoid the Diamond mishagoss with successful and profitable RSNs–the Yankees, Mets, Dodgers and even the Blue Jays, who enjoy the support of Canada media giant Rogers.
You can actually find odds on where these players might sign on the website ODDS SHARK.com. FanDuel’s site is not one where you can place those bets. Probably a conflict of interest. But they’re not even giving lines on where their games might be able to be seen. As of now, it appears that anyone thinking that FanDuel will be a significant part of that would be making a sucker’s bet.
Until next time…