Diamond Sports Group Makes Payment To Padres, Games To Remain On Bally Sports San Diego

Sinclair-owned Diamond Sports Group (DSG), which runs the Bally Sports branded regional sports networks, made their rights fee payment to the San Diego Padres on the last day of a 30-day grace period thus ensuring that, for at least the near term, the team will be seen on Bally Sports San Diego.

Diamond Sports Group filed for voluntary Chapter 11 bankruptcy protection earlier this month.

With the MLB set for Opening Day on Thursday, DSG had until 11:59pm on Wednesday to make the payment or the league was prepared to go to the courts to get the media rights back. DSG had hoped to gain the streaming rights to Padres games as part of paying their rights fees, but the Padres did not relinquish control.

Major League Baseball and commissioner Rob Manfred have said repeatedly that they are prepared to make games available to fans under all circumstances and made that clear in a statement following DSG filing for Chapter 11 bankruptcy.

“Diamond Sports Group’s bankruptcy declaration today is an unfortunate development that we have been expecting,” MLB said at the time. “Despite Diamond’s economic situation, there is every expectation that they will continue televising all games they are committed to during the bankruptcy process. Major League Baseball is ready to produce and distribute games to fans in their local markets in the event that Diamond or any other regional sports network is unable to do so as required by their agreement with our clubs.”

The league has been seen as the gold standard for sports streaming for over 20 years. The league spun off a separate media company called BAMTech in 2017 for the purposes of providing a turnkey solution for other companies. BAMTech was eventually sold to the Walt Disney Co. for $3.48 billion. BAMTech was renamed and now hosts Disney+ and ESPN+. The league has also been meeting with executives at distribution companies to provide games through traditional television. The Sports Business Journal reported that executives with DirecTV met with the league last week.

The Padres are not the only club in danger of not having their media rights fees paid to them, either on time, or at all. The Arizona Diamondbacks did not receive their payment after the 30-day grace period earlier this month. Other teams in danger include the Cincinnati Reds and Cleveland Guardians, both of whom are aired on Bally Sports Ohio.

Diamond Sports Group is looking to stay in business following the court-controlled debt restructure. At the time of the bankruptcy announcement, DSG’s top executive said games would continue to be shown on Bally Sports without interruption.

“DSG will continue broadcasting games and connecting fans across the country with the sports and teams they love,” said David Preschlack, CEO of Diamond at the time. “With the support of our creditors, we expect to execute a prompt and efficient reorganization and to emerge from the restructuring process as a stronger company.”Diamond Sports Group Makes Payment To Padres, Games To Remain On Bally Sports San Diego