Major League Baseball rejects Amazon’s $150 million rescue package for DSG

Major League Baseball (MLB) has reportedly declined Amazon’s proposed $150 million rescue package for Diamond Sports Group (DSG), the operator of Bally Sports regional sports networks (RSN).

The potential deal aimed to make Prime Video the primary home for local broadcasts of 40 major league sports teams in the United States, contingent on Amazon’s substantial investment.

Reports in December suggested that Amazon was actively negotiating with DSG for a deal that would grant Prime Video exclusive broadcasting rights for 40 major league sports teams.

However, MLB Commissioner Rob Manfred vetoed the proposal, citing Amazon’s preference for a multi-year agreement. Manfred reportedly prefers dealing directly with Amazon for arrangements exceeding 12 months.

DSG, facing financial challenges and operating under Chapter 11 bankruptcy protection since March 2023, is striving to renegotiate its long-term media deals with league and team partners, which it deems unsustainable.

The company, burdened with debts of up to $8 billion, is urgently seeking to provide a viable business plan to exit bankruptcy. Despite multiple deadline extensions, DSG has yet to present an acceptable plan, prompting concerns that the company might be stalling.

DSG has successfully secured deals with the NBA and NHL to broadcast local games for the remainder of the 2023-24 season at reduced rights fees in an attempt to relieve financial stress. However, these rights will revert to the leagues at the conclusion of the current campaign.

MLB has been sceptical of further deadline extensions, arguing that DSG’s repeated delays suggest a stalling tactic rather than a genuine effort to restructure.

The rejection of Amazon’s proposal adds another layer of complexity to DSG’s precarious situation. Negotiations with MLB, NBA, and NHL are integral to DSG’s restructuring process, and the company faces a critical bankruptcy court appearance scheduled for January 10.

Image credit: Corey Seeman