The Padres have invested in star players like 3B Manny Machado and are considered a championship contenderGetty Images
Diamond Sports made its rights fee payment to the Padres this afternoon, according to multiple sources, which means that Diamond’s Bally Sports San Diego will produce and distribute Padres games all season. There was a question whether Diamond Sports would make this payment. The company was late on making the payment and had until midnight tonight to pay the team without penalty as part of a grace period. It’s not known how much the deal is worth. The Padres’ Opening Day is tomorrow, and MLB was prepared to begin producing the team’s games if Diamond had missed its payment. Diamond had hoped to negotiate a new deal where it would get the Padres’ streaming rights as part of a direct-to-consumer offering that Diamond launched last season. Sources said that the team did not give up those rights. The Padres own about 20% of the Bally Sports San Diego RSN.
Diamond Sports filed for Chapter 11 bankruptcy in March and its execs have been negotiating with leagues, teams and creditors to come up with a restructuring plan. Diamond had identified at least four baseball contracts that it was hoping to rework, including the Padres. Diamond did not make its rights payment to the D-backs on time. But Diamond still plans to produce and distribute those games on Bally Sports Arizona. Sources said the next teams that are in peril of missing their rights fees payments are the Reds and Guardians, which play their games on Bally Sports Ohio. Diamond opted to make its payment to the Padres based, in part, on the team’s expected on-field performance. The Padres have invested in star players like 3B Manny Machado and RF Juan Soto and are considered a championship contender.
