The Cincinnati Reds and Diamond Sports Group have decided to end their joint venture, allowing the Reds to search for a new home to carry their local games on TV.
The Reds were joint owners in what is now FanDuel Sports Network Ohio. FanDuel took over naming rights for Diamond’s 16 regional sports networks last month after Diamond had an agreement with Bally Sports since March 2021.
According to a filing of the settlement, Cincinnati had a 20% stake in the network. Diamond will buy back the Reds' stake for $1.
It is likely that Major League Baseball will produce and distribute Reds games next season. MLB is already handling at least six teams in 2025; San Diego, Arizona, Colorado, Cleveland, Milwaukee and Minnesota.
The Texas Rangers are still assessing their broadcast options for next season after announcing last month it would not renew with Diamond.
The Reds' filing came after MLB and the Atlanta Braves filed an objection to Diamond Sports Group's reorganization plan.
Diamond Sports has been in Chapter 11 bankruptcy proceedings in the Southern District of Texas since it filed for protection in March 2023. The company said in a financial filing last year that it had debt of $8.67 billion.
A final hearing on Diamond’s reorganization plan is scheduled for Thursday.
MLB has stated throughout the bankruptcy process that Diamond has not produced a sustainable business plan nor has it produced enough of its financial records.
“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,” attorneys for the Braves and MLB said in the filing.
The Braves are the only team that did not have its contract amended or renegotiated.
Diamond announced it has agreed to a new contract with the St. Louis Cardinals and appear to be on the verge of reaching a new deal with the Miami Marlins. Both teams are partial owners of their regional sports networks.
Diamond is continuing to talk with the Los Angeles Angels and Kansas City Royals, the other two teams it is involved with in joint ventures.
Diamond Sports Group and Sinclair Broadcast Group bought the regional sports networks from The Walt Disney Co. for nearly $10 billion in 2019. Disney was required by the Department of Justice to sell the networks for its acquisition of 21st Century Fox’s film and television assets to be approved.
___
AP MLB: https://apnews.com/hub/mlb
http://accesswdun.com/article/2024/11/1271146