MLB Commissioner says league is prepared to step in to broadcast games — and maybe even end blackouts — as Bally Sports heads toward bankruptcy
- MLB Commissioner Rob Manfred said the league is prepared to broadcast games itself if necessary.
- A restructuring or termination of the league's broadcast agreements could also end controversial "blackouts."
Major League Baseball Commissioner Rob Manfred said the league is prepared to handle the looming bankruptcy of Diamond Sports Group, the parent company of several channels that air MLB regular season games.
Speaking at a spring training press conference on Thursday, Manfred said the league will step in to broadcast games if necessary, adding the situation could also provide the opportunity to address one of the biggest complaints among fans — broadcast blackouts that disrupt viewing, according to The Associated Press.
"I don't relish any of this," Manfred said at the conference, per the AP. "I think it's necessary to have a centrally based solution to what's a really serious problem and move us forward to our next stage of delivering games to fans, delivering them where they want to watch them, and without the kind of blackouts that we've had in the old model."
MLB is prepared to take over broadcasting the regular season games, which start March 30, Manfred said. That would likely mean increasing the broadcasting capabilities of its cable channel MLB Network, and finding a new broadcasting partner as soon as possible, Front Office Sports reported.
Sinclair Broadcasting Group, one of the largest broadcasters of local news across the country, bought the rights in 2019 to broadcast much of America's regular season games for the MLB, NBA, and NHL. Sinclair then created a subsidiary, Diamond Sports Group, to run the channels previously owned by Fox Sports and renamed them Bally Sports in a deal with Bally's casino company.
Diamond Sports Group was saddled with debt from the outset, and has stayed afloat until Wednesday, when the broadcaster of regular season games for 16 NBA, 14 MLB, and 12 NHL teams, missed interest payments of about $140 million, according to The New York Times.
The missed payment triggered a 30-day grace period, and the Times reported that Diamond is continuing to negotiate with creditors and the sports leagues about potential restructuring of debt, or debt forgiveness in exchange for equity.
Manfred said he hopes digital offerings and future broadcast deals would allow a fan to pay to stream their home team's games without worrying about "blackouts."
Fans have complained about blackouts for years, as restrictions in current broadcasting deals prevent fans from streaming their home team's games through MLB's own service, forcing many to pay more for cable, or streaming services that carry the channels.
If Diamond fails to pay MLB teams the billions they are owed in the coming months, Manfred said that would allow the league to terminate the agreements with the various Bally Sports channels and take over broadcasting until a new partner is found.
"From a fan's perspective, while it may not be whatever channel is your traditional RSN [Regional Sports Network], if you think about it from a reach perspective, the games being available digitally, in-market is something fans have been screaming for for years," Manfred said.
The problems caused by Diamond's financial struggles will likely affect the MLB first, because the NBA and NHL's regular season will be concluded by the time the situation is resolved and at that point, playoff broadcasting rights shift to networks like ESPN, ABC, and TNT.