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Diamond Sports Group, the Sinclair subsidiary that controls the regional sports networks for 42 teams across Major League Baseball, the National Hockey League and the National Basketball Association, announced that it has filed for Chapter 11 bankruptcy on Tuesday night, three days before the end of a 30-day grace period it entered into with creditors.

As part of a news release, Diamond, which has more than $8 billion in debt, said it “intends to use the proceedings to restructure and strengthen its balance sheet” and that the RSNs “will continue to operate in the ordinary course during the Chapter 11 process.” The company added that it possesses $425 million of cash in order to continue funding its business during the process.

MLB, whose teams draw significant revenues from its RSN deals with companies like Sinclair, is the most directly impacted by Diamond’s situation, given that its season will begin in less than three weeks. Diamond owns the rights to 14 major league teams and must continue to pay them their rights fees; otherwise, teams would be free to break their contracts, at which point MLB might take over broadcasting duties

To this point, Diamond has made payments to all its teams except the Arizona Diamondbacks, with whom they recently entered a contractual grace period. Other teams with Diamond, which run their broadcasts under the name Bally, include: the Detroit Tigers; Miami Marlins; Cleveland Guardians; Kansas City Royals; St. Louis Cardinals; Minnesota Twins; Cincinnati Reds; San Diego Padres; Los Angeles Angels; Atlanta Braves; Texas Rangers; Tampa Bay Rays; and Milwaukee Brewers.

MLB issued a statement on Tuesday night, calling the bankruptcy declaration an “unfortunate development” but assuring fans that they will not miss their team’s games this season.

“Despite Diamond’s economic situation, there is every expectation that they will continue televising all games they are committed to during the bankruptcy process,” the statement read. “Major League Baseball is ready to produce and distribute games to fans in their local markets in the event that Diamond or any other regional sports network is unable to do so as required by their agreement with our Clubs.”

The statement mentioned MLB’s experience with streaming live games on MLB.tv and producing games for MLB Network as proof of its capability “to deliver games to fan uninterrupted.”

“We think it will be both linear in the traditional cable bundle and digitally on our own platforms,” MLB commissioner Rob Manfred said of what it would look like if MLB takes on the responsibility of airing games in local markets at the onset of spring training. “But that remains to be seen.”

Sinclair, with Diamond acting as a subsidiary, purchased the RSNs from Fox in 2019, after Disney was forced to sell them off, for $10.6 billion. In the process, though, the company took on roughly $8 billion in debt, putting itself in a precarious position as the rate of cord-cutters increased.

Diamond, which initially began its grace period after skipping a $140 million interest-only payment to creditors in the middle of February, announced Tuesday it will now separate its business from Sinclair and become a standalone company. During bankruptcy proceedings, Diamond’s debt will turn into equity for its secured creditors.

The goal, a source familiar with the situation said, is for the company to acquire streaming rights for all 14 of its major league teams in order to broadcast games both through a linear cable model and on direct-to-consumer platforms. At the moment, Diamond has rights to stream the games to just five teams. It would have to negotiate the other nine with MLB, but MLB has previously been hesitant to sign off on additional rights for a company that has yet to prove itself financially sustainable.

Diamond’s filing was made through the U.S. Bankruptcy Court for the Southern District of Texas. In a statement, Diamond CEO David Preschlack wrote that the restructuring process “will allow [Diamond] to evolve our business while continuing to provide exceptional live sports productions for our fans.”

“With the support of our creditors,” Preschlack added, “we expect to execute a prompt and efficient reorganization and to emerge from the restructuring process as a stronger company.”

Diamond’s hope to building a sustainable business, a source said, is to prop up its Bally Sports+ streaming platform, ideally by making it a one-stop shop for fans to also purchase tickets and merchandise, place bets and read up on their teams. Diamond owns streaming rights for all 16 of its NBA teams and all 12 of its NHL teams, but for only about a third of its MLB teams.

Through the restructuring process, Diamond is widely expected to shed the contracts of its less-profitable teams. Not being able to acquire direct-to-consumer rights, which was part of the reason it entered into a grace period with the D-backs, will factor into which teams it chooses to hold onto.

MLB’s long-term goal, a source familiar with the league’s thinking said, is to control the rights for all its teams under one umbrella, a circumstance that could end the blackout issues that have plagued the sport in recent years. Diamond’s bankruptcy proceedings — in addition to Warner Bros. Discovery, which broadcasts the Pittsburgh Pirates, Houston Astros and Colorado Rockies, informing teams it will soon go through a liquidation — marks the beginning of that process.

In the short-term, MLB would broadcast the games of teams who end their contracts with Diamond both through their MLB.tv application and on a yet-to-be-determined cable channel. In anticipation of a development like this, MLB announced at the start of March that it had created a new local media department, headed by Billy Chambers, Sinclair’s former chief financial officer.

All team broadcasts, sources said, are expected to continue on as normal at the start of the season because Diamond is expected to keep broadcasting games while teams go through the court process of breaking free from their contracts after missed payments. The question becomes which teams Diamond will shed — the New York Post previously reported that the D-backs, Reds, Guardians and Padres will be among them — and how MLB approaches the situation thereafter.

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Walker back in Phils’ rotation after Abel demoted

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Walker back in Phils' rotation after Abel demoted

PHILADELPHIA — Mick Abel couldn’t sustain his sublime major league debut and is headed to the minors.

Taijuan Walker is back in Philadelphia’s rotation. And anticipation that prized prospect Andrew Painter could be headed to the Phillies will stretch past the All-Star break.

Zack Wheeler, Ranger Suárez and Cristopher Sánchez are about the only sure things this year in Philadelphia’s rotation.

The Phillies demoted Abel, the rookie right-hander who has struggled since he struck out nine in his major league debut, to Triple-A Lehigh Valley. The Phillies also recalled reliever Seth Johnson from Lehigh Valley ahead of Friday’s loss to Cincinnati.

The 23-year-old Abel made six starts for the Phillies and went 2-2 with 5.04 ERA with 21 strikeouts and nine walks.

“Mick needed to go down and breathe a little bit,” manager Rob Thomson said. “Just get a little reset. It’s not uncommon.”

A 6-foot-5 right-hander selected 15th overall by the Phillies in the 2020 amateur draft, Abel dazzled against Pittsburgh in May when his nine strikeouts tied a Phillies high for a debut, set by Curt Simmons against the New York Giants on Sept. 28, 1947.

Abel hasn’t pitched beyond the fifth inning in any of his last four starts and was rocked for five runs in 1⅔ innings Wednesday against San Diego.

Abel was 3-12 with a 6.46 ERA last year for Lehigh Valley, walking 78 in 108⅔ innings. He improved to 5-2 with a 2.53 ERA in eight minor league starts this year, walking 19 in 46⅓ innings.

“This guy’s had a really good year,” Thomson said. “His poise, his composure is outstanding. He’s really grown. We just need to get back to that. Just attack the zone and get through adversity.”

The Phillies will give Walker another start in Abel’s place against San Francisco. Walker has bounced between the rotation and the bullpen over the past two seasons. He has made eight starts with 11 relief appearances this season and is 3-5 with one save and a 3.64 ERA.

Thomson had said he wanted to give Walker an extended look in the bullpen. Abel’s struggles instead forced Walker — in the third year of a four-year, $72-million contract — back to the rotation. For now.

“He always considers himself a starter and ultimately wants to start,” Thomson said. “He’ll do anything for the ballclub, because he’s that type of guy, but I think he’s generally happy he’s going to go back into a normal routine, normal for him, anyway.”

Wheeler, Suárez and Sánchez have been lights-out in the rotation this year and helped lead the Phillies into first place in the NL East. Jesús Luzardo was a pleasant early season surprise but has struggled over the past two months and gave up six runs in two-plus innings in Friday’s 9-6 loss to the Reds.

“I still have all the confidence in the world in Luzardo,” Thomson said. “Everybody’s going to have bad outings here and there. I think we’re still fine.”

Thomson said he had not made a final decision on who will be the fifth starter after the All-Star break. Painter has two more scheduled starts in Triple-A before the MLB All-Star break and could earn a spot in the rotation. The 22-year-old will not pitch in the All-Star Futures Game as part of the plan to keep him on a hopeful path to the rotation.

Painter hurt an elbow during spring training in 2023 and had Tommy John surgery later that year. He was the 13th overall pick in the 2021 amateur draft and signed for a $3.9 million bonus.

Because of the All-Star break and a quirk in the schedule that has them off on all five Thursdays in July, the Phillies won’t even need a fifth starter after next week until July 22.

Aaron Nola could be back by August as he works his way back from a rib injury. Nola will spend the All-Star break rehabbing in Florida and needs one or two minor league starts before he can rejoin the rotation.

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Cubs’ Taillon (calf) to miss more than month

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Cubs' Taillon (calf) to miss more than month

CHICAGO — Chicago Cubs righty Jameson Taillon was placed on the injured list on Friday with a right calf strain, the team announced before its game against the St. Louis Cardinals. He’s expected to miss “more than a month,” according to manager Craig Counsell.

Taillon, 33, injured his calf on his last wind sprint after a bullpen session on Thursday.

“He’s going to miss a pretty significant amount of time,” Counsell said.

Taillon was 7-6 with a 4.44 ERA in 17 starts for the Cubs this season who just got lefty Shota Imanaga back from a hamstring injury. Now they’ll have to navigate at least the rest of this month without one of their other key starters.

“There’s a little room for us to be flexible right now,” Counsell said citing the upcoming All-Star break. “We’ll use that to our advantage and we’ll go from there.”

The team recalled left-hander Jordan Wicks to take Taillon’s spot on the roster, though he won’t go directly into the rotation. Instead, the Cubs will throw a bullpen game on Saturday against the Cardinals and “go from there,” according to Counsell.

Wicks, 25, went 1-3 with one save, a 4.06 ERA and 46 strikeouts in 12 appearances (11 starts) with Triple-A Iowa this season. In his past five starts dating to May 18, he posted a 1.65 ERA with 20 strikeouts, compared to just three walks, a 0.86 WHIP and a .186 opponent batting average.

The team might also consider a bigger role for righty Chris Flexen who has been fantastic for them out of the bullpen. Flexen, 31, has a 0.62 ERA in 16 games, including a four inning stint late last month.

“He’s a candidate to be stretched out for sure,” Counsell said. “He’s prepared to do a little bit more.”

Cubs brass have already stated they are looking for starting pitching before the trade deadline later this month. Counsell was asked if Taillon’s injury increases that need. He didn’t take the bait.

“The trade deadline isn’t until July 31,” he said. “I’m focused on the next week or 10 games before the All-Star break.”

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Guardians OF Thomas reinjures foot, exits game

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Guardians OF Thomas reinjures foot, exits game

CLEVELAND — Guardians outfielder Lane Thomas left during the sixth inning of Friday night’s game against the Detroit Tigers due to mild plantar fascia symptoms with his right foot.

Thomas missed 11 games in late May and early June because of plantar fasciitis in his right foot. He is batting .160 this season and .197 (13-for-66) since coming off the injured list on June 9. He does have four homers in his past 10 games.

“We think he’s good. The plantar fasciitis flared up a little bit again and I just didn’t like the way he looked running around the outfield. So rather than take a chance, I got him out of there,” manager Stephen Vogt said after the 2-1 loss to the Tigers.

Thomas also missed five weeks due to a right wrist bone bruise after getting hit by a pitch during the April 8 home opener against the Chicago White Sox.

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