Texas Rangers Terminating TV Rights Deal if Bally Sports Goes Bankrupt
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The Texas Rangers informed Diamond Sports Group last week that the MLB franchise would terminate its media rights deal should the company become insolvent, per a report in The Athletic.
The Rangers’ intention became public when DSG, which is part of Sinclair Broadcasting and oversees the Bally Sports' regional sports networks, filed its Chapter 11 Bankruptcy paperwork in court on Tuesday.
The Rangers sent a 35-page notice of default and termination to DSG on March 11. DSG said it objected to the Rangers’ intent and that it had not missed a payment.
The Athletic’s report notes that the Rangers receive $111 million in rights fees payments each year from DSG as part of its broadcast deal. The Rangers are supposed to receive a quarterly payment this month.
The Rangers expect there to be no disruption in televising the team’s games in the local Dallas-Fort Worth market.
MLB released a statement late Tuesday night: “Major League Baseball is ready to produce and distribute games to fans in their local markets in the event that Diamond or any other regional sports network is unable to do so as required by their agreement with our Clubs.”
MLB commissioner Rob Manfred said the league is building its own regional sports media division.
On Tuesday, the Athletic reported that DSG was prepared to walk away from several teams’ broadcast rights in a bankruptcy, including the Rangers.
DSG, which is owned by Sinclair Broadcasting, owns the rights to the Bally’s regional sports networks that hold the rights to 14 MLB teams, including the Rangers. Bally Sports also televises the Dallas Mavericks and Dallas Stars in DFW.
DSG skipped its $140 million interest payment in February, triggering a 30-day grace period as the company plots its next move. That grace period ends this week.
You can find Matthew Postins on Twitter @PostinsPostcard
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