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Amazon Pulls Out As DSG Backer, but Streaming Partnership Still Possible

  • The streaming giant will not be an equity partner of the Bally Sports parent company.
  • A separate distribution deal could still be reached.
Jerome Miron-USA TODAY Sports

Amazon is backing out as a financing partner of Diamond Sports Group. But that move is not expected to either imperil the Bally Sports parent’s attempted reorganization from bankruptcy, or the streaming giant’s status as a potential distribution partner for the regional sports network operator. 

The decision, initially reported by Sports Business Journal and confirmed by Front Office Sports, arrives about eight months after Amazon had agreed to provide $115 million in bankruptcy exit financing, in turn receiving 15% of the company. The deal was also set to establish Amazon Prime Video as DSG’s “primary partner” for fans to access the RSNs on a direct-to-consumer basis.

But DSG’s need for the funds has perhaps lessened. In addition to restructuring $450 million in debt, the company also settled a prior legal battle with corporate parent Sinclair, Inc. that involved DSG receiving an additional $495 million. DSG in recent weeks has also made major steps toward being able to emerge from bankruptcy, finalizing a new distribution deal with Comcast, the No. 2 cable carrier in the U.S., and completing revised rights deals with both the NBA and NHL

After reaching those agreements, DSG conveyed a heightened confidence in being able to reorganize. But after a confirmation hearing set for July was postponed, a new date has not yet been set. 

Amazon could remain involved as the DTC partner of DSG. As a result, the post-exit financing is not—and wasn’t ever—a singularly determinative factor in DSG’s bid to recover. Meanwhile, Amazon continues to rack up additional sports rights, most recently landing a national package with the NBA that begins with the 2025–2026 season.

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