What is weird to me is why haven't the Guardians sold their in market streaming rights to a provider, isn't that an additional revenue stream?
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How to watch the Guardians on TV
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DCTribefan
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iamond Sports Group Announces Restructuring Deal Featuring Investment From Amazon
By Darragh McDonald | January 17, 2024 at 9:50am CDT9:50am: Josh Kosman of The New York Post reports that Amazon is giving Diamond roughly $100MM for the streaming rights of the Tigers, Royals, Marlins, Brewers and Rays. That money and the Sinclair settlement money could be presented to a Houston bankruptcy judge as early as today.
8:45am: Diamond Sports Group announced that is has a restructuring support agreement in place that will allow it to emerge from bankruptcy and continue operating, as relayed by Brendan Coffey of Sportico. It apparently has approval from most of the company’s debt holders and also features an investment from Amazon. It also has a $495MM deal from Sinclair Broadcasting Group to settle outstanding litigation.
“We are thrilled to have reached a comprehensive restructuring agreement that provides a detailed framework for a reorganization plan and substantial new financing that will enable Diamond to operate and thrive beyond 2024,” Diamond CEO David Preschlack stated. “We are grateful for the support from Amazon and a group of our largest creditors who clearly believe in the value-creating potential of this business. Diamond’s near-term focus will be on implementing the RSA and emerging from bankruptcy as a going concern for the benefit of our investors, our employees, our team, league and distribution partners, and the millions of fans who will continue to enjoy our broadcasts.”
As noted by Coffey, Diamond is in Chapter 11 bankruptcy, which means that any deals will have to be approved by the court. But Diamond also says they have a deal in place with some debt holders to raise $450MM of “junior secured superpriority debtor-in-possession financing.” If the company can wriggle out of bankruptcy or get the court’s approval, this has the potential to be a significant development for them and for baseball.
Cord cutting in recent decades has led to significant challenges for the regional sports network (RSN) model, wherein RSNs pay millions of dollars to clubs for their broadcasting rights. The ongoing bankruptcy of Diamond Sports Group, which owns Bally Sports, has impacted the roster moves of several clubs. The company dropped its contracts with the Padres and Diamondbacks last year, with Major League Baseball stepping up to take over local broadcasts. Their contract with the Twins expired after 2023.
The Padres and Twins have each been operating with lower payrolls this year compared to last year, with the loss of RSN revenue a clear factor. There are 11* other teams that still have deals with Diamond but the uncertainty around how things would proceed has seemingly impacted some of them as well. For example, the Rangers are one of those 11 clubs and they have been acting with less aggression this winter, despite having just won the World Series. It has been speculated by some observers that their desire to re-sign Jordan Montgomery, or to make other theoretical moves, might hinge on the development of this bankruptcy and their broadcast situation.
Part of the proposal will see Amazon make a minority investment and offer direct-to-consumer services on their Prime Video platform. That will apparently include games from MLB, NBA and NHL, including pre-game and post-game content. The full details of those offerings aren’t fully clear at the moment. It was reported back in December that Amazon was discussing a streaming deal with Diamond but the latter company only had streaming rights for five clubs: the Tigers, Royals, Marlins, Brewers and Rays. Reporting from last week suggested that MLB shot down the discussions between the two companies, perhaps with the intent of negotiating a deal with Amazon directly.
In addition to the impact on clubs and their finances, it’s also possible this will have an impact on fans. The RSN model involved widespread blackouts, as those RSNs wanted to ensure customers were watching on cable on not on a streaming service like MLB.TV. These blackout areas have often been frustrating for fans due to some absurd overlap, such as the fact that the people of Iowa couldn’t stream games featuring the Cubs, White Sox, Cardinals, Twins, Royals or Brewers.
Things have been gradually shifting towards a direct-to-consumer model, with MLB having expressed a desire to embrace that path forward. When the league took over the Padres’ broadcasts in May of last year, they announced that people in the San Diego area could stream games blackout-free for $19.99 per month or $74.99 for the remainder of the season.
As for Sinclair, they bought Diamond in 2019 but the companies began operating independently after Diamond accused Sinclair of siphoning funds from the subsidiary.
Many of the details are still to come and there are still hurdles to clear but today’s news is a notable development for many facets of the baseball world.
* Those clubs are the Angels, Braves, Brewers, Cardinals, Guardians, Marlins, Rangers, Rays, Reds, Royals, and Tigers.
DCTribefan
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I have to think future local team broadcasts on Amazon Prime will entail an additional fee on top of the $139 annual Prime fee.
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Sure would be nice if the Guardians would have a press release to clear up the status at the moment.
smalls1129
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They honestly probably don't have enough details to release a statement yet. I'm sure the companies and league are still hamering through what teams are on prime, whether it's straight included like the NFL or a 2.99 add on service, blackout restrictions etc.
Guardians are not on Prime.
Amazon to help save bankrupt Diamond Sports with $100M deal to stream five MLB teams: sources
Amazon is poised to stream the games of five Major League Baseball teams this season after extending a roughly $100 million lifeline to bankrupt broadcaster Diamond Sports —…
nypost.com
Don't think today had anything to do w Guard. That negotiation is still on going if Ballys will broadcast them this year or not at lower cost. That was Ballys trying to get Guard to take less money. Just wondering if mlb is giving Guard a min bid to stream us on mlb.com like SDP in effort to do a bigger deal w Amazon (proof of concept thing).
DCTribefan
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Attorney doublespeak and straw man negotiating at its lowest. We have one unnamed team ready to deal on our terms. The others are free to go out on their own and at their own peril. Can Diamond Sport/Ballys operate in a shadier fashion?
A lot to flush out but how many streaming services did Amazon buy into for mere $100 million? 5 mlb plus NBA and NHL. Doesn’t sound like they bought 100% ownership (primary streaming partner plus minority stake in RSN) but it sounds awful cheap even for 1 yr rights (to be paid each yr).
But, when someone asked above why Cle hasn’t sold its rights, it’s a bit of robing Peter to pay Paul (the cable providers don’t pay as much if streaming cuts into their business). But, RSN contract May have prohibited streaming locally unless added in to their contract and Guard were holding out for more $$$$ as streaming heated up. I expect an answer from Cle soon as it sounded like Ballys gave a take it or leave it offer which may have demanded streaming rights which mlb hesitated on already.
But, when someone asked above why Cle hasn’t sold its rights, it’s a bit of robing Peter to pay Paul (the cable providers don’t pay as much if streaming cuts into their business). But, RSN contract May have prohibited streaming locally unless added in to their contract and Guard were holding out for more $$$$ as streaming heated up. I expect an answer from Cle soon as it sounded like Ballys gave a take it or leave it offer which may have demanded streaming rights which mlb hesitated on already.
CalBuckeyeRob
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As long as they are on the Extra Innings package I am happy.
DCTribefan
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Diamond Sports announces Amazon investment in comeback plan
Diamond Sports has reached a deal with Amazon which will see the streamer take a huge role in the company coming out of bankruptcy.
awfulannouncing.com
Gson
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After reading that article, it's as clear as a well stirred mud puddle.. In short.. the sum of the parts exceeds the value of the whole.. The competition to acquire local content exceeds the larger corporations' intent to maintain the archaic regional / restrictive broadcast rights, including the increasingly popular & profitable online streaming.. MLB wants to take over the default.. Amazon wants to buy distressed cheaply and build value.. Two competing strategies meeting at the middle = Getting to watch games by whatever means possible...
We'll see..
We'll see..
DCTribefan
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Latest per mlbtraderumors.com
None of the Rangers, Guardians or Twins are obligated to accept reduced rights fees. If they decline, however, it seems likely Diamond will drop the Texas and Cleveland contracts and leave Minnesota without a deal. Diamond already showed a willingness to abandon unprofitable terms during the 2023 season, when it dropped agreements with the Padres and Diamondbacks.
That leaves Texas, Cleveland and Minnesota without a ton of leverage. Diamond’s attorney said one of the organizations (without specifying which) plans to negotiate a deal that would even extend beyond next season, as relayed by The Athletic.
The uncertainty has been reflected in those franchises’ activity, or lack thereof, in free agency. Minnesota declared they were cutting payroll at the start of the offseason. They allowed Sonny Gray and Kenta Maeda to depart and have thus far signed one free agent to a major league contract. That was a $950K guarantee for reliever Josh Staumont, who is rehabbing from thoracic outlet surgery.
Texas is coming off a World Series that’d normally spur a team to act aggressively in the offseason. Instead, GM Chris Young indicated they wouldn’t be as active as they’d been in previous winters. The Rangers have signed a few free agents — most notably a two-year, $22MM pact for Tyler Mahle — but they haven’t splurged at the top of the class. The broadcasting situation is commonly cited as a reason they haven’t brought back Jordan Montgomery, who remains on the open market.
Cleveland is never a big spender, so the lack of activity on their end is characteristic. Still, the club is seemingly operating with limited flexibility. They’ve taken on some salary in the Scott Barlow trade and signed Austin Hedges to a $4MM free agent deal.
Whether all those teams can reach a new contract with Diamond should become clear in the next few weeks. Even if they stay on the networks for next season (and potentially beyond), it’d come with some kind of hit to their revenues. Paul Hoynes of Cleveland.com reported the Guardians made $55MM in local rights fees last season. It was a similar amount for Minnesota, whom Phil Miller of the Minneapolis Star-Tribunereports received $54MM in 2023. Evan Grant of the Dallas Morning News wrote yesterday the Rangers’ deal has paid around $111MM annually.
If any of those teams don’t reach an agreement, they’d join a trio of clubs likely to operate without an RSN deal this year. MLB stepped in to handle in-market broadcasting for Arizona and San Diego last season. While MLB subsidized a portion of the D-Backs and Padres deals last season, commissioner Rob Manfred has made clear they won’t do so next season. Allowing MLB to handle the broadcasts would likely be less profitable for the teams than if they land a new deal with Diamond.
None of the Rangers, Guardians or Twins are obligated to accept reduced rights fees. If they decline, however, it seems likely Diamond will drop the Texas and Cleveland contracts and leave Minnesota without a deal. Diamond already showed a willingness to abandon unprofitable terms during the 2023 season, when it dropped agreements with the Padres and Diamondbacks.
That leaves Texas, Cleveland and Minnesota without a ton of leverage. Diamond’s attorney said one of the organizations (without specifying which) plans to negotiate a deal that would even extend beyond next season, as relayed by The Athletic.
The uncertainty has been reflected in those franchises’ activity, or lack thereof, in free agency. Minnesota declared they were cutting payroll at the start of the offseason. They allowed Sonny Gray and Kenta Maeda to depart and have thus far signed one free agent to a major league contract. That was a $950K guarantee for reliever Josh Staumont, who is rehabbing from thoracic outlet surgery.
Texas is coming off a World Series that’d normally spur a team to act aggressively in the offseason. Instead, GM Chris Young indicated they wouldn’t be as active as they’d been in previous winters. The Rangers have signed a few free agents — most notably a two-year, $22MM pact for Tyler Mahle — but they haven’t splurged at the top of the class. The broadcasting situation is commonly cited as a reason they haven’t brought back Jordan Montgomery, who remains on the open market.
Cleveland is never a big spender, so the lack of activity on their end is characteristic. Still, the club is seemingly operating with limited flexibility. They’ve taken on some salary in the Scott Barlow trade and signed Austin Hedges to a $4MM free agent deal.
Whether all those teams can reach a new contract with Diamond should become clear in the next few weeks. Even if they stay on the networks for next season (and potentially beyond), it’d come with some kind of hit to their revenues. Paul Hoynes of Cleveland.com reported the Guardians made $55MM in local rights fees last season. It was a similar amount for Minnesota, whom Phil Miller of the Minneapolis Star-Tribunereports received $54MM in 2023. Evan Grant of the Dallas Morning News wrote yesterday the Rangers’ deal has paid around $111MM annually.
If any of those teams don’t reach an agreement, they’d join a trio of clubs likely to operate without an RSN deal this year. MLB stepped in to handle in-market broadcasting for Arizona and San Diego last season. While MLB subsidized a portion of the D-Backs and Padres deals last season, commissioner Rob Manfred has made clear they won’t do so next season. Allowing MLB to handle the broadcasts would likely be less profitable for the teams than if they land a new deal with Diamond.