NEW YORK (AP) — Out of concern about the possible bankruptcy of the company that owns the local broadcast rights to 14 of Major League Baseball’s 30 teams, the league has formed a new economic group that will meet next week for the owners meeting in Palm Beach, Florida.
The committee’s existence was disclosed to The Associated Press by a person with knowledge of the planning who spoke on condition of anonymity because no announcement has been made.
The committee will also examine the earnings disparity between MLB teams.
Los Angeles Dodgers president Mark Walter and Detroit Tigers president Chris Ilitch are among its members, the person added.
Executives said in recent weeks that they needed to prepare in case Diamond Sports Group, a subsidiary of Sinclair Broadcast Group that does business as Bally Sports, fails to make rights payments. Cable television channels have lost subscribers and profits in recent years.
Diamond has the broadcast rights to the Arizona Diamondbacks, Atlanta Braves, Cincinnati Reds, Cleveland Guardians, Detroit Tigers, Kansas City Royals, Los Angeles Angels, Miami Marlins, Milwaukee Brewers, Minnesota Twins, St. Louis Cardinals, San Diego Padres, Tampa Bay Rays and Texas Rangers.
Billy Chambers, who had been Sinclair’s chief financial officer, began work this week with MLB in the new position of local middle vice president.
The Walt Disney Company acquired the local sports broadcast networks as part of the acquisition of 21st Century Fox in March 2019.
In August, Sinclair said it bought 21 regional sports networks and Fox College Sports from Disney. The assets are worth $10.6 billion.
At the time, Disney sold the equity it acquired from Fox in the Yankees’ YES Network to a newly formed investment group that included Yankee Global Enterprises and Sinclair. The group had an 80% interest in YES that was not previously owned by the Yankees, the total value was 3.470 million.
Sinclair also has rights to NBA and NHL teams.
