Major League Baseball has enjoyed record-setting revenue for several years in a row, but the future of MLB team payrolls for some clubs has come into question this year after the Diamond Sports Group filed for Chapter 11 bankruptcy. Now, Amazon could save the day with a deal to take MLB games from Bally Sports.
The Diamond Sports Group filed for Chapter 11 bankruptcy in March, missing critical payments to several of the teams that it received broadcast rights for during the regular season. MLB stepped in to help the San Diego Padres and Arizona Diamondbacks, but many clubs were left with long-term uncertainty
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An unknown future with regional sports networks has been one of the biggest issues for front offices and ownership groups this winter. The Minnesota Twins and Texas Rangers are among numerous clubs projected to make payroll cuts in 2024, with some of them doing it either because DSG didn’t make payments or the club cut ties with DSG.
While MLB is offering teams support, inviting them to take part in MLB_broadcasted games for as many as 16 teams, there would still be significant ramifications. As player salaries increase, revenue for clubs could drop significantly in the short term because there’s less money coming from selling TV rights to games. However, help could be on the way.
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According to Lauren Thomas and Joe Flint of the Wall Street Journal, Amazon is in active talks to invest in Diamond Sports, which is the parent company of Bally Sports.
“Diamond Sports Group, which carries the games of more than 40 major sports teams across the country and filed for bankruptcy earlier this year, is actively negotiating with Amazon about a strategic investment and a multiyear streaming partnership, according to people familiar with the matter.
If an agreement is reached, Amazon’s Prime Video platform would eventually become the streaming home for Diamond’s games.“
Lauren Thomas and Joe Flint on Amazon’s interest in Diamond Sports, MLB games on Prime Video
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Let’s take a quick look at what streaming games on Prime Video could mean for the future of MLB and team spending.
How MLB games on Amazon Prime Video could impact baseball’s future
DSG is still partnered with nearly a third of MLB teams, with the Rangers, Cincinnati Reds, Atlanta Braves, Cleveland Guardians, Detroit Tigers, Kansas City Royals, Milwaukee Brewers, Tampa Bay Rays and Miami Marlins among the team. The uncertain future for Bally Sports and a history of DSG not making its payments to teams have left many teams restricting their spending this winter.
Amazon is currently paying the NFL $1 billion per season for the exclusive rights to Thursday Night Football. While MLB clubs whose games could be streamed on Prime Video wouldn’t receive $1 billion each, Amazon could offer them a surefire source of revenue and likely more than DSG provided.
Expansion into live sports has long been an aspiration for the company. There are active negotiations with the NBA for a streaming package, there’s already an NFL playoff game on Prime Video and the College Football Playoffs could be next.
It’s unlikely this report will have any influence on team spending this winter, these are only negotiations and a deal could easily fall apart. However, this is likely a deal that DSG would be highly interested in and MLB would see as a way to expand its popularity and generate more revenue. If a deal is completed, we could see MLB games on Amazon Prime Video in 2024 with those respective MLB teams increasing payrolls in 2025 and beyond.
