BREAKING, (R)EJECTION: Bally Sports Asks Court To Take Diamondbacks Games OFF THE AIR Starting Next Week, Losing "Significant Sums" On Agreement

Bally Sports Arizona wants to stop airing Arizona Diamondbacks baseball games beginning next week. The company is currently in a bankruptcy reorganization, and tells the court this morning in an "emergency" motion that it "lose(s) significant sums on the Diamondbacks Agreement" (which is supposed to run until 2035).

The hearing on the motion to reject the rights agreement is scheduled for next Thursday.

Major League Baseball has made promises to the Diamondbacks and other teams under contract with Diamond Sports entities that it would make sure fans will be able to watch the games, but the details are uncertain and it is sure to lose many viewers accustomed to watching their first place Diamondbacks on their normal cable channel.

The next payment from Bally Sports to the Diamondbacks is due on July 1 and was to cover the remainder of the season. They tell the court that

 "the Debtors have determined that Diamondbacks Agreements is currently significantly unprofitable and is projected to be increasingly unprofitable in subsequent years. The current costs associated with performing under the Diamondbacks Agreement outweigh the revenues the Debtors are able to obtain through broadcasting Diamondbacks games pursuant to the Diamondbacks Agreement. As such, the Debtors have concluded that the Diamondbacks Agreement does not fit within the Debtors’ long-term strategic plan and therefore is not necessary to the Debtors’ business. Accordingly, the Debtors have made the reasonable determination that the Diamondbacks Agreement currently does not, and is unlikely in the future to, provide a net benefit to the Debtors or their estates."

The Diamondbacks had earlier asked the court to "compel" Bally Sports to make a decision on the contract. After a two day hearing, the Court ordered Bally Sports to make the payment it had defaulted on in March, and advised the parties to "keep talking".

Bally Sports pulled out of its joint venture with the San Diego Padres several weeks ago. Fans are able to stream their games on the MLB Network and on several satellite services (see below).

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