MLB Updates: Amazon Saves Bankrupt Broadcaster With $115 Million Investment, Rangers Breathe a Sigh of Relief

The slow demise of the Regional Sports Network has brought on an existential crisis for MLB. The future of eleven franchises is directly connected to the financial health of Diamond Sports. Last year the network had declared bankruptcy. This led to a frenzy in all the 37 sports franchises associated with it, but Amazon may have just saved the bankrupt broadcaster.

While the case was in court, Major League Baseball and Diamond Sports were in constant negotiation. The league had expected that 2024 could be the final year of the network and MLB would get the media rights of most of the franchises. But Amazon may have not only saved Diamond Sports but also affected the long-term strategy of the league.

Amazon invests in Diamond Sports as the future of MLB becomes murkier

According to The Athletic, Diamond Sports has arranged for a $450 million plan with creditors to save its future. The most noteworthy news was the $115 million investment by Amazon, plus another $50 million if the need arises. Through this, Diamond Sports will create a new company 15% of which will be owned by Amazon. This deal could have huge ramifications for the league. 

11 MLB teams currently have their media rights attached to Diamond Sports. The negotiations have already affected this offseason with teams like the Texas Rangers unable to invest due to the unclear future of the network. If the network does stay put, the media rights will remain with Diamond Sports. This could benefit Amazon, but not the MLB.

Amazon has always wanted to stream games on its Prime platform. MLB had hoped that getting media rights for these eleven teams, plus the San Diego Padres and the Arizona Diamondbacks, would give them an edge in media negotiations. With nearly thirteen teams in their kitty, the league could’ve negotiated hefty fees from the networks, including Amazon.

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But with Amazon investing in Diamond Sports, they might get their baseball fill without having to renegotiate for media rights. While in the short term, this could save the teams’ revenues, this may have put a damper on the long-term vision of MLB. 

The future is safe at least till 2024

Apart from the Texas Rangers, the Cleveland Guardians, and the Minnesota Twins – the rest of the nine teams have been assured of their payments for 2024 and maybe beyond. The Rangers and Diamond Sports still have a few terms and conditions on which they disagree. While Diamond Sports hopes that it will be resolved soon, they’ve stated that they won’t stop if these teams want to leave. 

For the other teams, it means that for at least 2024, their payments are safe. But the opportunity to shop their media rights may have vanished from their hands. But with MLB and Diamond Sports still in negotiations, this story is far from over. 

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