When Diamond Sports, the parent company that owns the 19 Bally Sports regional networks, entered bankruptcy last month right before the start of the MLB season, there was some question of whether it would continue to make rights fee payments to teams.
Twins not getting paid as Bally Sports North shows games; MLB files motion demanding pay
In an emergency filing this week, MLB asked the court to make Diamond Sports pay the Twins the rights fees they are owed — or relinquish control of the rights next week.
April 6, 2023 at 7:25PM
The answer so far: Yes and no. And one of the teams Diamond Sports is not paying — at least not yet — is the Twins, which has spurred Major League Baseball into action.
As reported initially by The Athletic and confirmed by the Star Tribune. MLB has filed an emergency motion seeking one of two things: either Diamond pays the Twins and Cleveland Guardians, the two affected teams, by April 13 — or the broadcast contracts are terminated.
At that point, MLB would step in to produce and distribute games.
This feels like an escalation in an ongoing battle, though how soon things actually get resolved is a matter for the courts — as I talked about on Thursday's Daily Delivery podcast.
"Just one day prior to the April 1 due date for the first 2023 installment of the fees due to the Clubs, the Debtor RSNs informed the Guardians and the Twins that the Debtor RSNs would not be making the required payments," the motion reads. "The Debtor RSNs made this decision even though they continue to use the Clubs' valuable intellectual property every day. By continuing to broadcast Guardians and Twins games, they generate postpetition revenue, yet boldly refuse to pay the Clubs."
The Twins generate more than $40 million in yearly local TV revenue from their Bally Sports North contract, but the future was uncertain even before the missed payment.
This is the last year of the TV contract for the Twins, and indications are the Twins have been reluctant to strike a new deal with Bally Sports North — a channel that has disappeared from local viewers in staggering numbers in recent years.
While it's possible that the Twins could still get paid before the April 13 deadline, a non-payment could trigger a change in how games are shown even this season.
MLB is prepared to take over production and distribution and has been very vocal about its ability to do so. Games would be available to Twins fans via traditional cable/satellite subscriptions and through a direct-to-consumer streaming model if that occurs. It's also possible that the issue isn't settled in court before the end of this season, at which point the contract between the Twins and Bally Sports North would expire.
When he was hired after the disastrous 2016 season to reshape the Twins, Derek Falvey brought a reputation for identifying and developing pitching talent. It took a while, but the pipeline we were promised is now materializing.
