November 8, 2024

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MLB has formally objected to Diamond Sports Group’s reorganization plan, citing “grave concerns” over its viability. As a key court date approaches, the future of several team broadcasts hangs in the balance.

— Eric Fisher [[link removed]], David Rumsey [[link removed]], and Colin Salao [[link removed]]

MLB Fires Back at DSG Plan, Raising Doubt Over Long-Term Viability [[link removed]]

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Major League Baseball levied its biggest broadside yet against Diamond Sports Group on Friday, formally objecting to the proposed reorganization plan of the bankrupt regional sports network operator.

Escalating what has already been nearly two years of rising tensions, the league in a filing with the U.S. Bankruptcy Court specifically called into question DSG’s plan to retain its rights contract with the Braves [[link removed]]. After failing to receive a wide range of requested financial documents, MLB also still harbors serious doubts about DSG’s ability to become viable.

“Based on the current inadequate record, the Braves and MLB have grave concerns that, if the plan is confirmed, there is a substantial likelihood that the debtors will find themselves once again in financial distress and/or bankruptcy court in the near future,” the league said in its filing.

The objection arrives six days before DSG is due to go before the court for confirmation of its plan to emerge from bankruptcy.

“Neither Braves nor MLB should be compelled to partner with a business that does not have a realistic roadmap to future operations,” the league added.

MLB’s objection comes about five weeks after DSG said it was looking to renegotiate much of its baseball rights [[link removed]], and that it would drop nearly every team it currently has absent a reduction in rights fees. As of now, only the Braves, Cardinals, and Marlins have any assurance of airing on FanDuel Sports Network in 2025. The objection also arrived one day after DSG agreed to a reworked rights deal with St. Louis [[link removed]].

The local broadcast fate of the Angels, Rays, Reds, Royals, and Tigers is still uncertain as the situation continues.

Next Steps

The key question now is whether the league’s stated concerns will have a material impact on DSG’s attempted reorganization. During the prior stages of the bankruptcy case, Judge Christopher Lopez has shown a generally permissive stance toward giving DSG what it wants to aid the company’s restructuring.

That said, MLB still holds some sizable leverage in this situation. Even after DSG’s previously amended deals with the NBA and NHL [[link removed]], baseball still represents the largest share of live content for the RSNs given the number of games involved, and without a critical mass of MLB games, the company will have a gaping hole in its spring and summer programming.

DSG now has five days to formally respond to MLB’s objection. The U.S. Trustee, which oversees the administration of bankruptcy cases, previously objected to DSG’s plan, largely on procedural grounds relating to third-party consent.

Massive NIL Deal Could Sway Top QB From LSU to Michigan [[link removed]]

Daily Press and Argus

LSU football commit Bryce Underwood, the top-ranked quarterback in the class of 2025, is set to visit Baton Rouge this weekend around the Tigers’ prime-time matchup against Alabama on Saturday night. And while Underwood has been verbally pledged to LSU since January, he may have 10 million reasons to change his mind, thanks to the shifting landscape of college sports.

Underwood is a senior at Belleville High School, which is less than 20 miles away from “The Big House”—Michigan Stadium in Ann Arbor. The five-star recruit has been at the center of college football discourse this week, thanks to some potentially very expensive tactics from his home-state school. Michigan fans are hoping Underwood will decommit from LSU and ultimately sign with the Wolverines.

Here’s what we know:

Underwood is expected to land a multiyear NIL package [[link removed]] “valued above $5 million” from any school he picks, according to On3. If Underwood were to choose Michigan, his total compensation could be “closer to double [[link removed]]” that $5 million valuation, according to CBS Sports. Barstool Sports founder Dave Portnoy previously said he would put up $3 million via an NIL deal [[link removed]] to help Michigan, his alma mater, land a top quarterback. A $10 million deal for Underwood would rival the total NIL money Caleb Williams was said to have made [[link removed]] during his two years at USC, per The Athletic.

Michigan (5–4), the defending College Football Playoff champions, won’t make the postseason in the first year of the expanded 12-team Playoff [[link removed]]. Wolverines coach Sherrone Moore is in the first season of a five-year, $30 million contract, after taking over for Jim Harbaugh, who left to return to the NFL and coach the Los Angeles Chargers.

LSU (6–2) is No. 15 in the initial CFP rankings [[link removed]], but likely needs to defeat 11th-ranked Alabama (6–2) to keep its Playoff chances alive.

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Fuel the fandom with AI. Learn more [[link removed]].

NFL, UEFA Rights Help Paramount+ Add 3.5 Million Subscribers [[link removed]]

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Live sports rights like the NFL and English Premier League helped CBS Sports parent company Paramount Global add streaming subscribers and improve direct-to-consumer profitability in its most recent financial quarter.

Paramount, in its Q3 earnings released Friday, reported the addition of 3.5 million subscribers to Paramount+ at the end of September. The streaming service’s quarterly revenue grew by 25% compared to the same period in 2023, and Paramount’s overall DTC income shot up 10% to $1.69 billion.

September brought the return of the NFL and college football, with games broadcasts on CBS also streaming on Paramount+. That month also kicked off this season’s UEFA Champions League, with the streamer being a major part of CBS Sports’ deal that is running until 2030.

Paramount co-CEO George Cheeks said on Friday’s earnings call that the NFL on CBS averaged more than 20 million viewers in the first five weeks of the season, with streaming of the games on Paramount+ up more than 50% year over year. “Our programming strategy remains laser focused on entertainment, news, and sports that excel on both CBS and Paramount+,” Cheeks said.

Paramount+, which starts at $7.99 a month, now has 72 million subscribers. Beyond football and soccer, CBS Sports and Paramount+ also broadcast men’s and women’s college basketball, men’s golf (the Masters, PGA Championship, and PGA Tour), the NWSL, and WNBA throughout the year.

Skydance Merger Still on Track

Paramount’s $8 billion merger with Skydance Media remains on track to close in the first half of 2025, the company announced Friday. Until then, operations will continue as normal.

“The Skydance transaction achieved a few key milestones, including the conclusion of the ‘ go-shop’ period [[link removed]],” Paramount co-CEO Chris McCarthy said. On Monday, Paramount filed its S-4 registration statement with the U.S. Securities and Exchange Commission, which is a key step in mergers and acquisitions.

Exactly how that deal will impact CBS Sports is still largely unknown [[link removed]].

WEEKEND PRIZE POOL Crowded Atop the Leaderboard

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Front Office Sports tees up every weekend sporting slate with a ledger of the purses and prize pools at stake. Here’s what’s up for grabs this weekend:

LPGA Tour: Lotte Championship, Hawai‘i

When: Wednesday to Saturday Purse: $3 million First place: $450,000

PGA Tour: WWT Championship, Mexico

When: Thursday to Sunday Purse: $7.2 million First place: $1.3 million

WTA: Tour Finals, Riyadh, Saudi Arabia

When: Sunday Purse: $15.3 million First place: $5.2 million for an undefeated champion ($350,000 less per round-robin loss)

NASCAR: Cup Series Championship, Phoenix Raceway

When: Sunday Purse: $11.7 million First place: Individual payouts are no longer disclosed SURVEY

Want a chance to win $250? Help FOS improve by taking a few minutes to complete a brief survey [[link removed]]. As a thank-you, we’re offering a chance to win a Visa gift card or FOS merch of your choice. Submissions are open through Nov. 19.

STATUS REPORT Three Up, One Push

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Sacramento Republic FC ⬆ The details for the team’s new stadium [[link removed]] were released Thursday. The $342 million plan includes rehabilitation of the 31-acre area, with 14 acres used for the stadium that’s expected to be ready by 2026. The surrounding entertainment district is expected to open in 2027. The team’s majority owner will be the Wilton Rancheria tribal nation, the first time a Native American tribal nation will have a majority stake in a pro sports team.

Delaware State ⬆ The school announced Thursday it will be the first Division I HBCU with a women’s wrestling team, starting with the 2025–2026 school year. The HBCU Wrestling Initiative poured in $1.25 million to help launch the program, according to executive director Jahi Jones. The Hornets compete in the Mid-Eastern Athletic Conference.

Canadian Hockey League ⬆ The NCAA Division I council ruled that players who competed in the league are eligible to play in the NCAA [[link removed]] starting next August. The previous ban was a result of past CHL players signing contracts with the NHL. Players also received a monthly stipend—though the maximum was just $600.

Bronny James Jr. ⬆⬇ The Lakers rookie and son of LeBron James [[link removed]] is headed to the G League. ESPN reported Thursday that the No. 55 pick of the 2024 draft is expected to join South Bay [[link removed]], the team’s affiliate, following the main Lakers’ game Friday against the Sixers. The move isn’t exactly unexpected, as 23 of 28 second-round picks in 2023 spent time in the G League.

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Parity Week Paint Scheme Hits NASCAR

A meaningful paint scheme will be on display at the NASCAR Cup Series Championship on Nov. 10 at Phoenix Raceway, supporting Parity Week by Gainbridge [[link removed]], a partnership among Gainbridge®, Parity, and the Women’s Sports Foundation® (WSF).

Gainbridge® has awarded 21 grants and $150,000 in total funding to organizations that support girls and women through sports and education. The grant recipients [[link removed]] are listed on the rear of the No. 7 Chevrolet Camaro ZL1 that NASCAR driver Justin Haley will steer.

Each recipient is hosting an event this month supporting girls and women through sports and education [[link removed]]. There are 14 different states represented. The initiative was inspired by sports icon and equality advocate Billie Jean King, who started the WSF 50 years ago.

Gainbridge® and King are aligned through the Billie Jean King Cup by Gainbridge, which is also this month in Spain.

Conversation Starters The University of South Florida broke ground on its $340 million on-campus stadium Friday. The stadium is set to open in 2027 and will have a Bull U-shaped student section. Check out [[link removed]] the renderings. Pat Kelsey, Louisville’s new men’s head basketball coach, walked around campus to hype students up for their Saturday game against No. 12 Tennessee. Take a look [[link removed]?]. The Islanders have retro-style luxury suites in the UBS Arena highlighted by a private speakeasy-style cocktail bar. Take a look [[link removed]]. Editors’ Picks DraftKings Lowers Full-Year Guidance After Brutal NFL Outcomes [[link removed]]by A.J. Perez [[link removed]]DraftKings cited a tough start to the fourth quarter in lowering its 2024 guidance. Nike and Adidas Are Losing Sportswear Share in China [[link removed]]by Lisa Scherzer [[link removed]]Chinese brands like Anta and Li-Ning are taking Nike’s share of the market. Florida Gives Billy Napier Vote of Confidence With Huge Buyout Looming [[link removed]]by Margaret Fleming [[link removed]]Napier’s $26 million buyout would be second largest in college football history. Advertise [[link removed]] Awards [[link removed]] Learning [[link removed]] Events [[link removed]] Video [[link removed]] Podcast [[link removed]] Written by Eric Fisher [[link removed]], David Rumsey [[link removed]], Colin Salao [[link removed]] Edited by Matthew Tabeek [[link removed]], Catherine Chen [[link removed]]

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