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Comcast drops Bally RSNs, injecting more chaos into sports TV landscape

Just as Diamond Sports Group and its Bally regional sports networks seemed to be making progress in a plan to emerge from bankruptcy, the process took a turn for the worse Tuesday — and some baseball fans across 12 markets are out in the cold.

Subscribers to Comcast and its Xfinity television service can no longer watch any of Diamond’s 18 channels because of a carriage dispute. Diamond has 38 teams across MLB, the NBA and NHL, including 12 teams in baseball: the Atlanta Braves, Cincinnati Reds, Cleveland Guardians, Detroit Tigers, Kansas City Royals, Los Angeles Angels, Miami Marlins, Milwaukee Brewers, Minnesota Twins, St. Louis Cardinals, Tampa Bay Rays and Texas Rangers.

Diamond’s fight with Comcast naturally centers on total dollars, but a lot of the focus is coming down to the tier of service that Comcast hosts Diamond’s channels on. Comcast wants Diamond to appear on a premium tier.

“It’s how fast that’s going to happen, and who’s it going to happen to? Is it going to happen with new subs or is it going to be with current subs?” said media consultant Patrick Crakes, who runs an eponymous consultancy. “Comcast has been successful in moving everybody all at once (in other negotiations).”

A person briefed on Diamond’s thinking said the Comcast is offering ultimately significantly less money than was being paid before. A person briefed on Comcast’s thinking said it wants to give consumers more choice over what content they receive.

Comcast reported 13.6 million video subscribers in the first quarter this year.

“We have been very flexible with Diamond Sports Group for months as they work through their bankruptcy proceedings, providing them with an extension on the Bally Sports Regional Networks last fall and a unilateral right to extend the term for another year, which they opted to not exercise,” Comcast said in a statement. “We’d like to continue carrying their networks, but they have declined multiple offers and now we no longer have the rights to this programming. We will proactively credit our customers for the costs associated with them — most will automatically receive $8 to $10 per month in credits.”

Said Diamond in a statement: “It’s disappointing that Comcast rejected a proposed extension that would have kept our channels on the air and that Comcast instead pulled the signals, preventing fans from watching their favorite local teams. Comcast has refused to engage in substantive discussions despite Diamond offering terms similar to those reached with much larger distributors of ours. We are a fans-first company and will continue to seek an agreement with Comcast to restore broadcasts, and at this critical juncture for Diamond, we hope that Comcast will recognize the important and mutually beneficial role Diamond and RSNs play in the media ecosystem.”

MLB declined comment.

The Cardinals and Twins both put out statements that said they have “no voice” in the matter.

Diamond is in the middle of a protracted bankruptcy process, and a confirmation hearing for a restructuring plan that could help it avoid liquidation is set for June. But one of the keys for that plan to be successful is Diamond reaching an agreement with major distributors, such as Comcast — something Comcast potentially could leverage. Diamond has told a federal bankruptcy court in Houston that about 81 percent of its distribution revenue is tied to three companies: Charter, Comcast and DirecTV.

Deals with Charter and DirecTV have both been announced, but a fight with Comcast is nonetheless a major issue. Diamond could attempt to leverage the fact it was able to complete deals elsewhere as a pressure point on Comcast.

“I always thought when it came to these distribution negotiations, Comcast was going to be the hardest,” Crakes said.

The choices Diamond and Comcast make from here will affect fans’ ability to watch games immediately, but also significantly impact the overall RSN landscape in the long term.

MLB has been skeptical all along of Diamond’s ability to emerge from bankruptcy with a viable long-term plan.

“MLB and the Clubs question whether the Debtors will be able to demonstrate to the Court that confirmation of the Plan is not likely to be followed by the liquidation, or further financial reorganization,” the league said in a written court filing last month.

This article originally appeared in The Athletic.

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