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DSG Nears Deals With Comcast, NBA, NHL to Aid Reorganization

  • The bankrupt Bally Sports parent company nears deals with Comcast, the NBA, and the NHL.
  • A lawyer for the regional sports network operator warns that failing to reorganize is still possible.
Jerome Miron-USA TODAY Sports

Diamond Sports Group is closing in on a big trifecta of agreements that could give the bankrupt regional sports network operator a sizable leg up in its reorganization efforts. 

The Bally Sports parent told a U.S. bankruptcy court Wednesday that it is postponing a scheduled July 29 hearing to confirm its reorganization plan. The delay is aimed at giving the company more time to complete not only a distribution deal with Comcast but new programming contracts with the NBA and NHL.

The pacts, if finalized, would resolve three of DSG’s more problematic areas in recent months. Comcast pulled Bally Sports stations off its systems in May, a major flashpoint in a growing carriage battle involving the No. 2 U.S. cable carrier. According to industry sources, DSG is expected to agree to Comcast’s long-held insistence that the Bally Sports RSNs move to a premium-level tier, just as it has recently treated similar channels such as the Mid-Atlantic Sports Network and SportsNet Pittsburgh. 

The NBA and NHL, meanwhile, have both made plain before the court their concerns about DSG emerging from bankruptcy as a viable company. Reaching new agreements would clearly signal a change in sentiment, and perhaps place more pressure on MLB, which in recent months has been the most outspoken among the major pro leagues about their frustration with DSG. 

“While no agreements have been reached at this time, these discussions are ongoing … with significant progress being made,” said DSG attorney Brian Hermann. 

Not Quite Done

DSG has not yet established a new schedule to confirm its reorganization plan, but Hermann intends the timetable to move by “days, and not weeks.” The final timing will, of course, depend on if and when the company is able to complete any or all of the three contracts. A key driver of the final schedule will also be the October starts of the 2024–2025 NBA and NHL seasons, which DSG intends to precede with its deals. 

Despite the tone of optimism Hermann sought to convey before Judge Christopher Lopez, the lawyer nonetheless said there is still a chance of the talks failing and DSG ultimately not being able to reorganize. 

“That is not our focus today, but that is a possibility, and that’s not lost on us,” Hermann said. 

None of the involved leagues commented during Wednesday’s status conference with the court.

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