Lawyers for MLB, NBA and NHL spoke in rapid succession Wednesday, delivering the sharpest criticism of Diamond Sports Group since the bankrupt broadcaster introduced a liquidation avoidance plan in January. But despite vocal concerns, no league has filed a formal challenge in court, and it's unclear whether any will.
Comcast Xfinity customers have been unable to watch Diamond's Barrie Regional Sports Network since last month as Diamond and Comcast engage in dollar negotiations. Twelve of his MLB teams, representing over a third of the league, are broadcast on these channels, with Diamond broadcasting a total of 38 teams across his three leagues.
“We're once again halfway through a season in which the Diamond is a trusted partner,” said MLB attorney James Bromley. “This is not a contract signed by Major League Baseball and its clubs. … It's been a full two weeks since Comcast shipped the shipment, but there's no word on when or under what terms the shipment will be picked up. I don't understand anything.”
The baseball season continues, but the NBA and NHL are concerned about transportation when the new season begins in the fall. But Diamond's deal with its third-largest distributor, Comcast, also has long-term implications for whether Diamond can operate beyond 2024 and whether a court will rubber-stamp its plans. It's affecting. An approval hearing is scheduled for June 18th.
“There are more questions than answers,” NBA attorney Vincent Indelicato said in court Wednesday. “At the very least, we need to understand the economic reality of Diamond being abandoned by Comcast. We need to understand the implications of any deal Diamond may make with Comcast.”
There are 15 NBA teams on the diamond. (Jerome Miron/USA Today)
“The way we determine on a day-to-day basis whether or not a pro team's game will be broadcast is not working for us and cannot continue,” NHL agent Shana Elberg said in a statement.
Of the Diamond's three partner leagues, MLB has always been the most important. The company was the only one of the three to file a written statement with the court on Tuesday, laying out many of the claims that were elaborated the following day. But once in front of the judges, the three leagues essentially locked arms.
even deeper
MLB says Comcast-Diamond dispute is 'seriously harmful'
Houston federal judge Chris Lopez, who is handling Diamond's bankruptcy case, granted the league's appeal but expressed no surprise.
“I understand where we are,” Lopez said. “And I know that the debtors also understand their position. There's work to be done. We're all going to be a little smarter and have a little more information in early June when the hearings are held. I hope you can get it.
“There's been a lot of good work done so far, and we don't want to lose sight of that. … There are still some serious questions that need to be answered.”
Diamond insisted to Lopez that it was making progress overall, having reached deals with the top two distributors, Charter and DirecTV, and the fourth-ranked distributor, Cox.
Diamond also said it is nearing a new naming rights deal with an unspecified sponsor. As part of the rebuilding plan, the Barrie brand will disappear at the end of this season.
“I won't go into details, but the deal we presented to Comcast is similar to the deals we got with Charter and DirecTV, which are larger than Comcast,'' Diamond's attorney Brian Harman said. I want you to know.” “This is not the first time content providers and distributors have found themselves in an impasse. …Those things happen from time to time, but most of the time they are resolved and we are optimistic that this one can be resolved as well. .”
However, Bromley pointed out that there is no guarantee that a deal will come to fruition.
“As a matter of public record, Comcast has removed other RSNs in the past and simply walked away,” MLB's attorney said.
The June 18 confirmation hearing has not been rescheduled for now, but Diamond sought and was granted an extension of the interim deadline to file an objection on Wednesday. That date has been changed from May 22nd to June 5th.
MLB has indicated that July might make more sense for confirmation hearings.
“How on earth can we have a hearing – I think this is going to be contested – and do discovery… (The exit) has only been a little over 30 days. ''I have no information at all,'' asked Bromley. “Everything is up in the air right now.”
Comcast reported 13.6 million video subscribers in the first quarter of this year. Bromley said as many as 50 percent of fans in some baseball markets are Comcast subscribers.
Earlier this year, Diamond appeared to be on track for liquidation at the end of 2024, but Amazon has since stepped in as an investor and claims Diamond can continue operating beyond 2024.
The 12 MLB teams handled by Diamond are the Atlanta Braves, Cincinnati Reds, Cleveland Guardians, Detroit Tigers, Kansas City Royals, Los Angeles Angels, Miami Marlins, Milwaukee Brewers, Minnesota Twins, and St. Louis Cardinals. , the Tampa Bay Rays, and the Texas Rangers.
In a 13-page filing Tuesday, MLB listed the “memorable, exciting and historic performances and games” that Comcast subscribers missed this month, one for each team Comcast serves. did.
Lopez mentioned one of those items Wednesday.
MLB article about the Reds: “Ellie Delacruz (Reds) is MLB's stolen base leader, stealing two bases in each game for three consecutive games.”
“Mr. Bromley, I read everything there, including the references to Ellie Delacruz,” Lopez said. “Okay, we've seen everything there, so let's just continue on our way.”
(Top photo: Chris Coduto/Getty Images)
