A Major League Baseball logo at Angel Stadium in Anaheim, California, May 22, 2022.
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Major League Baseball and the Atlanta Braves have raised issues with the reorganization plan and future viability of Diamond Sports Group, the nation's largest owner of regional sports networks, according to a bankruptcy court filing Friday.
The Braves and MLB said in the objection that they have “serious concerns” about the current plan because “there is a significant possibility that [Diamond Sports] will find themselves in financial distress and/or bankruptcy courts again in the near future.”
The filing noted that both MLB and the Braves have an interest in Diamond Sports succeeding with a reorganization plan, but they are not convinced that the currently proposed plan is feasible.
A representative for Diamond did not immediately comment on the filing. Meanwhile, Diamond will seek approval of its reorganization plan from a U.S. bankruptcy judge on Thursday.
MLB and the Braves' concerns stem from a lack of information about the restructuring proposal, which consists of 20 documents totaling 181 pages, according to the filing. Diamond lawyers have said in court that there are limitations to what they can offer, in part because of confidentiality agreements with the company's distribution partners, such as pay-TV operators.
Additionally, both the league and Braves have also asked for more clarity on Diamond's proposed commercial partnership Amazon will look like. Diamond lawyers have previously said in court that discussions with Amazon are still ongoing.
MLB and the Braves are also concerned about the confusion over Diamond Sports' direct-to-consumer plan, a strategy that has only become more important as more customers move away from traditional cable bundles.
This isn't the first time MLB has wanted more information about Diamond's financial plans. In October, an MLB lawyer said at a hearing that the league wanted additional information about the language used in a recent naming rights deal Diamond struck with FanDuel for the regional sports networks formerly known as Bally Sports, which Diamond owns.
The Braves are part of a publicly traded company Atlanta Braves Holdings after splitting from John Malone's Freedom Media in 2023. In addition to being chairman of Liberty Media, Malone is still a shareholder in the new company.
Diamond Sports had previously said it will maintain its contract with the Braves as part of its bankruptcy plan while seeking to renegotiate or drop its contracts with 11 other MLB teams with which it has made deals.
Friday's objection does not mean the Braves have turned away from Diamond over their regional media rights.
As of Thursday, the St. Louis Cardinals and Diamond have agreed to terms on their local rights, and during a hearing in October, lawyers said Diamond was nearing a deal for the Miami Marlins.
On Friday, the Cincinnati Reds said they would leave their Diamond-owned regional sports network, according to a lawsuit.
Three of the 11 teams Diamond attempted to rework contracts with have since turned to MLB to produce their local games.