MLB ClAIMS DSG Is Stumbling During Reorganization Process

Major League Baseball (MLB) has raised serious concerns about the ongoing restructuring process of Diamond Sports Group (DSG), the regional sports network operator. Let’s dive into the details:

Background: DSG manages 18 Bally Sports-branded local cable channels under the Sinclair Broadcast Group. The company has been undergoing a 14-month bankruptcy restructuring.

Recent Developments: Two weeks ago, DSG entered into a carriage dispute with Comcast, one of the major U.S. pay-TV operators. Unfortunately, this dispute led to a surprise blackout of Bally Channels on Comcast, impacting DSG’s revenue.

MLB’s Concerns: MLB has expressed doubt that DSG will emerge from bankruptcy as a going concern. The league believes that DSG’s restructuring plan is now at risk due to the loss of revenue from Comcast. MLB lawyers labeled the plan as “highly conditional” on factors like carriage renewal agreements.

Impact on MLB Clubs: 12 MLB clubs are affected by the Comcast blackout. MLB fears it may need to scramble for alternative local TV distribution arrangements for these teams, similar to last summer when DSG abruptly abandoned deals with the San Diego Padres and Arizona Diamondbacks.

Critical Situation: MLB’s statement suggests that DSG’s Chapter 11 cases now hang by the thinnest of threads.

The situation underscores the challenges faced by DSG and the delicate balance required for successful restructuring.