The Cincinnati Reds are on the hunt for a new television partner after ending their joint venture with Diamond Sports Group, which managed local broadcasts through what is now FanDuel Sports Network Ohio. The termination of this partnership marks a significant shift for the Reds, who held a 20% stake in the network under a prior deal with Bally Sports, now renamed after FanDuel acquired naming rights for Diamond’s regional sports networks in October 2023.
Reds’ Departure and MLB’s Involvement
According to the settlement agreement, Diamond Sports Group will repurchase the Reds’ stake in the network for a nominal $1, formally releasing the team from their involvement in the network. This opens the door for the Reds to explore new broadcasting partnerships, potentially with Major League Baseball (MLB) stepping in to handle game production and distribution.
MLB has already taken on broadcasting responsibilities for six teams, including the San Diego Padres, Arizona Diamondbacks, and Cleveland Guardians. The league is well-positioned to take on additional teams for the 2025 season, which could include the Reds if a new arrangement is not secured independently. The Texas Rangers, who also opted not to renew with Diamond Sports, are similarly reviewing broadcast options for the upcoming season.
Diamond Sports Group’s Bankruptcy and Financial Woes
Diamond Sports Group, a subsidiary of Sinclair Broadcast Group, filed for Chapter 11 bankruptcy in March 2023 in the Southern District of Texas, citing substantial debt of $8.67 billion. The group’s financial struggles have intensified as it continues to navigate the reorganization process. A final hearing on Diamond’s reorganization plan is scheduled for this Thursday, with MLB and the Atlanta Braves filing objections to the current proposal.
In their court filing, MLB and the Braves expressed serious doubts about the sustainability of Diamond’s plan. They voiced concerns that, without a more viable financial strategy and transparent records, Diamond may face another financial crisis or be forced back into bankruptcy proceedings. The Braves are currently the only team whose contract with Diamond was not renegotiated or amended as part of the ongoing restructuring.
Diamond’s Recent Broadcast Negotiations and Restructuring Efforts
While Diamond is experiencing a turbulent period, it has managed to secure a renewed contract with the St. Louis Cardinals and is close to finalizing a new agreement with the Miami Marlins. Both the Cardinals and Marlins, who hold partial ownership in their respective regional sports networks, are working with Diamond to establish more stable broadcasting arrangements.
Negotiations are also underway with the Los Angeles Angels and Kansas City Royals, who, like the Reds, previously maintained joint ventures with Diamond. These ongoing discussions highlight Diamond’s strategy to retain partnerships where partial ownership is involved, allowing the group to sustain its network despite the financial reorganization.
Historical Context and Sinclair’s Acquisition
Diamond Sports Group acquired the regional sports networks from The Walt Disney Company in 2019 for nearly $10 billion, after Disney’s acquisition of 21st Century Fox’s film and television assets. This acquisition required approval from the Department of Justice, with Disney mandated to divest regional sports assets to avoid market monopolization concerns. Sinclair Broadcast Group’s Diamond Sports Group has struggled to maintain profitable operations since, leading to the current financial instability and restructuring efforts.
What’s Next for the Cincinnati Reds?
The Reds’ decision to separate from Diamond Sports opens an opportunity to reassess how they connect with fans. MLB’s increasing role in broadcasting suggests that the league may act as a bridge for teams impacted by Diamond’s financial uncertainty. The league’s support is crucial for teams seeking dependable broadcast solutions, as it may offer a centralized approach that ensures fans continue to access live games.
This shift also comes as sports broadcasting transitions, with increasing pressure on traditional networks due to evolving viewer habits. Streaming services and digital platforms are reshaping sports consumption, pushing teams and networks to explore diverse broadcasting solutions to stay competitive and accessible to fans. As the Reds explore potential new partners, MLB’s role in facilitating stable, league-controlled broadcasting may become more prominent, potentially influencing how regional sports content is delivered in the years to come.
With the Reds looking forward to a new broadcast chapter, they join a growing list of MLB teams striving for reliable broadcast partnerships amidst shifting industry landscapes.
