• Loading stock data...
Thursday, November 21, 2024

Diamond Sports Group Is About to Survive Bankruptcy. Will It Matter?

  • The bankrupt company faces key questions relating to both programming and distribution.
  • The NBA’s ongoing national media rights talks are expected to play a role.
erome Miron-USA TODAY Sports

Diamond Sports Group is inching closer to exiting bankruptcy, but numerous issues remain in front of the embattled parent of the Bally Sports regional sports networks, including core concerns relating to both what programming it will have and where it will be distributed. 

At a court hearing held this week in Houston, DSG received approval of a disclosure statement that outlines its plan to exit bankruptcy. That assent was another procedural step following the court’s prior approval of a legal settlement between DSG and its parent company, Sinclair Inc., as well as $450 million in debtor-in-possession financing to aid with its restructuring. 

The next big step for DSG will be a hearing on June 18, when the company is slated to seek confirmation of the full reorganization plan. But between now and then, several key questions must be resolved. Among them:

  • What’s on the air? A $115 million bankruptcy exit financing deal with Amazon, in which the online retail and streaming giant will receive a 15% equity stake in DSG, is predicated on undoing prior deals DSG struck with the NBA and NHL that would return local media rights to those leagues after the 2023–24 season—pacts that were based on a previous assumption that DSG would be ceasing operations. DSG’s long-term status with MLB is also unresolved. DSG has presented proposals for longer-term agreements with the NBA and NHL that include “rights fee modifications” and also contemplate digital rights.
  • Who will distribute DSG? The company recently struck a multiyear carriage deal with Charter, the country’s largest cable operator, but discussions are still ongoing with Comcast and DirecTV. If DSG is not able to reach agreements with the second- and third-largest distributors in the business, its ability to maintain a critical mass of subscribers and generate revenue would be severely impaired. In fact, DSG said about 81% of its distribution revenue is tied to those three companies, and distribution represents the vast majority of DSG’s total revenue. MLB also raised further questions about the economics of the Charter deal at the hearing, with Jim Bromley, a lawyer representing the league, saying, “We hope the debtors are going to be able to do what they have said they’re going to do.” 
  • What will be the impact of the NBA’s national rights talks? The league is about to allow exclusivity periods for ESPN and Warner Bros. Discovery to lapse in ongoing talks for the next cycle of national media rights. That will open up the NBA for additional suitors, and discussions there are likely to have a material role in how the league ultimately approaches this regional situation. 

“We are focused on reaching long-term agreements with our partners to enable us to continue serving fans across the U.S. and delivering meaningful value to distributors, teams, and leagues,” DSG said in a statement.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Rays $1.3B Ballpark Plans Stalled by Bond Delays, Hurricane Fallout

St. Petersburg officials vote to delay bonds for a new ballpark.
Nov 16, 2023; Las Vegas, Nevada, USA; McLaren F1 Team driver Oscar Piastri of Australia (81) during free practice at Las Vegas Strip Circuit.

F1 Welcomes Second Chapter of Polarizing Las Vegas Grand Prix

Both championship battles have yet to be clinched entering the Las Vegas race, which was not the case last year.

Old Rivals, New Stakes: Notre Dame and Army to Clash in Yankee..

The two schools are playing for the first time since 2016.
Sep 25, 2024; Uncasville, Connecticut, USA; Indiana Fever guard Caitlin Clark (22) reacts during the first half against the Connecticut Sun during game two of the first round of the 2024 WNBA Playoffs at Mohegan Sun Arena.

Caitlin Clark Has Told Unrivaled She Won’t Play in Inaugural Season

Clark has definitively told Unrivaled that she won’t be playing this year.
podcast thumbnail mobile
Front Office Sports Today

Who Can Actually Afford Juan Soto?

0:00

Featured Today

Nov 18, 2023; Las Vegas, Nevada, USA; Williams Racing driver Logan Sargeant of the United States (2) during the Las Vegas Grand Prix at Las Vegas Strip Circuit.

F1 Grand Prix Upended Vegas Last Year. Stakes Are High for Its..

Stakes are high as F1 gears up for a successful second act.
Classic Football Shirts New York Pop-Up
November 18, 2024

Vintage Soccer Jerseys Have Found a Sweet Spot in the Lucrative U.S...

The money-making shirts are at the prime intersection of memorabilia and fashion.
Nov 13, 2024; New York, New York, USA; New York Knicks guard Josh Hart (3) reacts after fouling Chicago Bulls guard Coby White (not pictured) during the second half at Madison Square Garden.
opinion
November 16, 2024

NBA Ratings Rorschach Test: Buy the Dip

Was it the election? Too many threes? Lack of storylines?
November 15, 2024

Executive Decision: When Richard Nixon Named a College Football Champion

In 1969, the 37th president unilaterally named the winner of the season.
A photo of Around the Horn's set

‘Around the Horn’ to End 23-Year ESPN Run in 2025

ESPN had reportedly been thinking of canceling the show since the summer.
Nov 19, 2024; Boston, Massachusetts, USA; The Boston Celtics and Cleveland Cavaliers play during the second half at TD Garden.
November 20, 2024

Cavs vs. Celtics Draws Big TV Numbers in NBA Cup Showdown

The game averaged 1.94 million viewers and peaked at 2.7 million.
November 21, 2024

NBA Legend Hubie Brown Stepping Away From ESPN at 91

Brown has been associated with the league for over 50 years.
Sponsored

How UBS Crafts Impactful Partnerships Across Sports, Arts, and Culture

As UBS continues to expand its impressive array of sports and entertainment partnerships, the company solidifies its position as a leader in wealth management.
November 20, 2024

NFL Ratings Hold Strong Through Election Season, Chiefs Lead TV Pack

In 2016, NFL ratings fell 8% from the prior year.
November 20, 2024

Comcast’s SpinCo: New Home for USA Network, Golf Channel, Sports Rights

The move by NBC Sports’ parent company reflects how dramatically the linear television business has changed.
Nov 18, 2024; Miami, Florida, USA; Philadelphia 76ers center Joel Embiid (21) looks on against the Miami Heat during the third quarter at Kaseya Center.
November 19, 2024

Will NBA Flex Last-Place Sixers From National TV Games?

Philadelphia is 2–11, tied for last in the NBA.
November 19, 2024

Bills’ Dethroning of Chiefs Draws Highest TV Ratings of NFL Season

The massive rating continues Kansas City’s dominance as the NFL’s No. 1 TV team.