Diamond Sports Bankruptcy Coming to a Head: What Does That Mean for Twins TV Deal?

[Cody Christie]

Dominoes are starting to fall in the Diamond Sports Group’s bankruptcy case. What does that mean for the Twins fans ability to consume games on Bally Sports North?

Image courtesy of Jeffrey Becker-USA TODAY Sports

Diamond Sports Group, the parent company of the Bally Sports regional networks, informed the Padres that it wouldn’t be making a scheduled payment to the organization. The payment was due to San Diego multiple weeks ago, but DSG had until May 30th to make the payment if they wanted to continue broadcasting games. This has created a chain reaction that can impact televised Twins games in the weeks ahead. 

Beginning on Wednesday, Padres games will be broadcast in-market games for free on MLB.TV. These games will also be free of blackout restrictions, and that portion of the deal runs through Sunday’s game. Starting on Monday, fans can purchase MLB.TV for $19.99 per month or $74.99 for the remainder of the season. San Diego also announced fans in-market can watch on DirecTV, Spectrum, Cox, Fubo and on MLB.TV. Adding these services opens Padres broadcasts to an additional two million fans. 

MLB announced, “By offering a direct-to-consumer streaming option on MLB.TV in the Club’s territory for the first time, MLB is able to lift the blackout for Padres games previously distributed on Bally Sports San Diego.” It’s a chance for MLB to test this type of distribution method with what might be a glimpse into the future of baseball viewing. 

DSG has missed payments to other teams this season, but they have always made up the debt during the grace period. The Padres are in the middle of a 20-year, $1.2 billion deal for Bally Sports San Diego that runs through 2032. Because of San Diego’s market size, it is not profitable for DSG, and they have decided not to fulfill their subsequent payment. 

In a statement sent to the Sports Business Journal, Diamond said, “While DSG has significant liquidity and have been making rights payments to teams, the economics of the Padres’ contract were not aligned with market realities. MLB has forced our hand by its continued refusal to negotiate direct-to-consumer (DTC) streaming rights for all teams in our portfolio despite our proposal to pay every team in full in exchange for those rights. We are continuing to broadcast games for teams under our contracts.”

The Padres will keep their on-air broadcasting staff in the transition to a direct-to-consumer streaming option. There might be some changes to the pregame or postgame staff because of the switch to a different media outlet. Minnesota fans can see San Diego as an example of what can happen when DSG misses a payment. 

For the Twins, the Bally Sports saga is something fans have paid attention to for months. It must also be frustrating since the Twins are in the final year of their current television deal. Diamond has been paying a group of teams, like the Twins, at a lower rate since their bankruptcy proceedings began. DSG feels those contracts should be restructured to align more closely with their current market values. Conversely, MLB believes their clubs should be paid the total value of the originally agreed-upon deals.

On Wednesday, a bankruptcy hearing will be held that Twins fans can follow with anticipation. According to multiple reports, MLB doesn’t expect a ruling on Wednesday. Still, it might be the first step toward the Twins getting a similar direct-to-consumer streaming options like the Padres will have to start this weekend. 

Would you prefer different methods for streaming Twins games? How do you feel the DSG situation will play out? Leave a COMMENT and start the discussion. 

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[Vanimal46]

I am pretty confident that the Twins will not be broadcast on Bally Sports at the end of the season. Sounds like we are next, along with Cleveland and Arizona, to likely break away from Diamond Sports. 

The good news is MLB acted swiftly with the Padres and it should triple the amount of homes who can watch their games. My hope for the cord cutters is MLB will choose some channels on YouTube TV or Hulu Live TV to broadcast the games so more people can watch the Twins. 

Revenue sharing has to be strongly considered once the collapse of Diamond Sports is final. Most teams will never be able to recapture the revenue from their old TV contracts. Other teams like the Yankees and Dodgers will have an enormous advantage if their RSN deals remain in tact. 

[DJL44]

1 hour ago, Vanimal46 said:

I am pretty confident that the Twins will not be broadcast on Bally Sports at the end of the season. Sounds like we are next, along with Cleveland and Arizona, to likely break away from Diamond Sports. 

The good news is MLB acted swiftly with the Padres and it should triple the amount of homes who can watch their games. My hope for the cord cutters is MLB will choose some channels on YouTube TV or Hulu Live TV to broadcast the games so more people can watch the Twins. 

Revenue sharing has to be strongly considered once the collapse of Diamond Sports is final. Most teams will never be able to recapture the revenue from their old TV contracts. Other teams like the Yankees and Dodgers will have an enormous advantage if their RSN deals remain in tact. 

Why would you want the middleman in Hulu (which won't exist next year) or YouTube? I want MLB to sell me a streaming service at $100 a season.

MLB already has extensive revenue sharing.

[Fire Dan Gladden]

Now if only this would rollover to the radio staff and they could replace their current color man with Kris Atteberry...

[Riverbrian]

I'm a simple guy... I am comfortable with cable as it is and haven't considered cutting the cord.  

If the Twins were not on cable.

I'm not sure that I would remain comfortable with cable. 

[IaBeanCounter]

Riverbrian, I cut the cord this year as the cable was getting outrageous.  I am saving a $100/mo. by being on YouTube TV, with the cost of losing Bally Sports North.  I checked into buying MLB plan, but found out that Iowa is blacked out for Twins, Royals, Cardinals, Cubs, White Sox and Brewers.  I am hoping that the Twins will soon be free of BSN and I will be able to stream the Twins.

[CRF]

57 minutes ago, Fire Dan Gladden said:

Now if only this would rollover to the radio staff and they could replace their current color man with Kris Atteberry...

I'm all for dazzle taking an extended vacation...but not for Atteberry to take over. For me, he's like fingernails on a chalkboard including all the cliches

[wsnydes]

1 hour ago, DJL44 said:

Why would you want the middleman in Hulu (which won't exist next year) or YouTube? I want MLB to sell me a streaming service at $100 a season.

MLB already has extensive revenue sharing.

In theory, giving access to a Hulu or YouTube makes it cheaper for the consumer and thus expanding to more households than a standalone app alone would.  I'd personally be more inclined to add a sports or Twins package or whatever to Hulu than paying for yet another app.  Assuming the math worked out, of course.

I imagine that @Vanimal46 is referring to revisiting revenue sharing after their TV structure has been gutted.  That's a significant piece of the pie that leans heavily towards the larger market teams.  Existing revenue sharing structure may not properly rebalance that sharing as proportionally as it should in this case.

[CRF]

I just hope that we ALL have some kind of reasonable option to watch the games...whatever that might be. I guess we should find out something soon. 

[DJL44]

13 minutes ago, wsnydes said:

In theory, giving access to a Hulu or YouTube makes it cheaper for the consumer and thus expanding to more households than a standalone app alone would.

I'm still not getting it. YouTube TV is $73 a month. Why would I pay for that when I can just pay the Twins $20/month? A standalone app would be available to everyone who has internet access. What households are using YouTube TV but lack internet access?

I could see an option for Dish/Direct TV. I can also see some games appearing again on local broadcast television. It would be terrific if 45 decided to air all the Twins games.

[Fire Dan Gladden]

24 minutes ago, CRF said:

I'm all for dazzle taking an extended vacation...but not for Atteberry to take over. For me, he's like fingernails on a chalkboard including all the cliches

Maybe my expectations have been lowered too much, but at least I know what is happening when Atteberry is on the mic.

[wsnydes]

2 minutes ago, DJL44 said:

I'm still not getting it. YouTube TV is $73 a month. Why would I pay for that when I can just pay the Twins $20/month? A standalone app would be available to everyone who has internet access. What households are using YouTube TV but lack internet access?

I could see an option for Dish/Direct TV. I can also see some games appearing again on local broadcast television. It would be terrific if 45 decided to air all the Twins games.

Because if you already have YouTube TV, that $20/month extra for a Twins app is an additional $20/month.  The $73/month for YouTube is irrelevant since you're already paying that anyway.  It'd be whatever it cost you to add a "Twins package" to YouTube that would be the difference.  Assuming the package on YT is less than $20/month, it's cheaper to go that route.

[Riverbrian]

52 minutes ago, IaBeanCounter said:

Riverbrian, I cut the cord this year as the cable was getting outrageous.  I am saving a $100/mo. by being on YouTube TV, with the cost of losing Bally Sports North.  I checked into buying MLB plan, but found out that Iowa is blacked out for Twins, Royals, Cardinals, Cubs, White Sox and Brewers.  I am hoping that the Twins will soon be free of BSN and I will be able to stream the Twins.

The blackout rules are ancient and are really not good for baseball. 

My cable comfortableness aside... For the good of the game, I'm hoping with this Diamond debacle that baseball is able to get into something makes it possible to be everywhere that everybody is. 

We should be able to watch a baseball game on any device anywhere... for the good of the game. 

Of course... I don't know how to work any of that stuff... so I think I'm being quite generous in my hopes for the future. 😄 

[jmlease1]

I just wish the shady-ass media company (Sinclair? Think was those scumbags) that bought up all the regional Fox Sports Networks and rebranded them into Bally's and spun them off into this Diamond Sports Group could be held to account for this. They vastly overpaid for the networks and everyone knew it at the time. Now, saddled with all of that debt, they're trying to get out of paying their bills.

It's pretty pathetic that they're also trying to get MLB to hand them streaming rights in exchange for fulfilling their contractual obligations. they've been broadcasting the games, collecting the ad revenues, and not paying the rights and think they're entitled to extort baseball for additional assets to add to their bankruptcy pile?

Twins may face a similar fate this season, but it's my understanding that their rights fees aren't as out of whack with the revenue generation that they had with SD. So that one might still get paid, at least until all of the other debt calls wipe out the rest of this fraudulent company's cash.

[Vanimal46]

55 minutes ago, DJL44 said:

I'm still not getting it. YouTube TV is $73 a month. Why would I pay for that when I can just pay the Twins $20/month? A standalone app would be available to everyone who has internet access. What households are using YouTube TV but lack internet access?

I could see an option for Dish/Direct TV. I can also see some games appearing again on local broadcast television. It would be terrific if 45 decided to air all the Twins games.

It’s just another avenue to get more potential eyes on the Twins. More options is a good thing. 

[Steve Lein]

2 hours ago, Riverbrian said:

I'm a simple guy... I am comfortable with cable as it is and haven't considered cutting the cord.  

If the Twins were not on cable.

I'm not sure that I would remain comfortable with cable. 

I think this means you should have cut the cord long ago 😉 and makes you one of those who will love paying $20/month for Twins games as opposed to whatever your cable bill is currently.

 

1 hour ago, DJL44 said:

I'm still not getting it. YouTube TV is $73 a month. Why would I pay for that when I can just pay the Twins $20/month? A standalone app would be available to everyone who has internet access. What households are using YouTube TV but lack internet access?

I could see an option for Dish/Direct TV. I can also see some games appearing again on local broadcast television. It would be terrific if 45 decided to air all the Twins games.

What you're missing here, is as soon as Bally gives up their broadcast rights by not paying and MLB takes over, they're immediately giving out the rights to the services Bally has been dropped from/wasn't negotiating in good faith with (IMO).

So, if you have Hulu/Youtube TV/whatever else this article mentioned for the Padres as an example, you're gaining the ability to watch the team you haven't been able to, immediately. It's a huge amount of people, as the article mentions in the Padres case, it's 2 million of them. I bet it's a similar amount here in Minnesota/MSP, as we are a bigger metro area than San Diego.

I myself, since I don't have cable or a streaming "Live" TV service, have opted to pay the $29.99 for the entire year of MiLB.tv instead of the Twins because of DSG/Bally and the $150+ cable package it requires. I miss watching the Twins games for sure, but I'd still pay far less than that adding a $20/month MLB.tv to my streaming catalogue (though I also think that number is too high to pay for a single team, especially when it's only $5 more to get EVERY team).

edit for clarification: You also gain the option to pay the $20/month to MLB.tv for the Twins you mention that you currently don't have.

Edited May 31 by Steve Lein

[mikelink45]

Because I work all  over North America I bought the MLB.com package a couple years ago and was hit with blackouts even when I was in the midst of the Maritimes and in the waters of Alaska.  I really hope things work out or I will not purchase any packages.  Even Audacy will not bring me radio in other markets. 

[Elite Benchwarmer]

I moved to South Dakota in May.  I had to download a VPN to be able to stream Twins games on MLB.TV.  Hopefully, next year the blackout restrictions will be eliminated for streaming Twins games.

[Parfigliano]

I'm internet illiterate in NM and get games via DirecTV.  

[Jocko87]

38 minutes ago, eric grundmeier said:

I moved to South Dakota in May.  I had to download a VPN to be able to stream Twins games on MLB.TV.  Hopefully, next year the blackout restrictions will be eliminated for streaming Twins games.

I’ve been very glad to be living out of the blackout regions and this is a very good thing for those that are stuck. I pay this same money for the MLB tv package and get everything I want living out of market. I wouldn’t have it if I lived in market but would pay for the option to avoid the blackout if I could. I generally don’t do the VPNs and streaming boxes anymore but don’t blame anyone who does. We have to solve dumb problems. 

I will be curious how this effects my plan. A blackout free full mlb tv package would be at least $500. I like having all the games but wouldn’t pay that. What do they do with the Iowa blackout hole? 5 team package?

[twinsguy03]

7 hours ago, DJL44 said:

Why would you want the middleman in Hulu (which won't exist next year) or YouTube? I want MLB to sell me a streaming service at $100 a season.

MLB already has extensive revenue sharing.

MLB.TV is a great streaming service. It's my understanding that teams who get out of their contracts with Diamond will have their blackout restrictions lifted on MLB.TV and in the future also be available on a regional channel in their market.

[Richmond Dude]

I live out-of-market now, but I wish everyone the best on this and hope that however you choose to get TV/streaming, the Twins are fully available to you wherever you are soon.

For those discussing buying just the streaming option, I think it's even cheaper than $20 per month if you buy the annual plan.  It definitely is for me, but I get the veteran's discount.  Worth looking into it.

[Bigfork Twins Guy]

Not sure how this all works out, but whichever way it goes, I want ALL the games on a single outlet whether that be Balley, MLB, etc.  I DO NOT want to jump around to Hulu, Apple TV, etc. to look for games individually.

I currently have Fubo as it has BSN and a few other channels that I like and I live in northern MN so I would be blacked out using MLB.  I'll adjust once the final solution is known.