Diamond Sports' Final Payout to Padres is a Shocking Fraction of Initial Sum

In May 2023, Diamond Sports Group decided to drop the San Diego Padres from the regional lineup and did not pay its rights fee. The fallout was monumental and shifted the broadcasting rights from Bally Sports to Major League Baseball.

The Padres will recoup just a fraction of what they were owed when Bally Sports San Diego’s parent company defaulted on its television contract last season, according to a copy of an agreement filed in U.S. Bankruptcy Court on Tuesday.

Diamond Sports Group originally agreed to the Padres as much as $78.9 million. However, a Padres source told the San Diego Union-Tribune that the team is expecting to get just $17 million total.

The confidential agreement between the two parties was made public as part of an exhibit in a motion and revealed the Padres originally sought $162 million from Diamond Sports Group, which was contracted to broadcast the team’s games through 2032 at roughly $60 million per year.

Diamond Sports Group filed for bankruptcy last year looking to eliminate more than $8 billion in debt. The company also dropped the Arizona Diamondbacks from their lineup.

Although the Padres denied that the loss of television revenue affected their payroll, San Diego cut its opening day payroll by more than $90 million. According to spotrac.com, the Padres were ranked No. 3 in payroll in 2023 and entered this season at No. 15.

“There’s a lot coming in that’s higher than it’s been in the past on the revenue side and some areas where we’ve taken small steps back,” Padres CEO Erik Greupner said in February. “But overall, the fan support that we’ve received, the attendance, the ticket revenue has allowed us to continue to field a competitive payroll, and we’re incredibly thankful for that. And we’re able to do that regardless of taking a little bit of a step back on the TV side.”