Facing growing pressures from leagues, teams, creditors, distributors, and accelerating industry trends, Diamond Sports Group is once again asking a court for more time to prepare a reorganization plan.
After previously getting an extension to file that plan on Sept. 30, the Bally Sports parent has gone back to U.S. Bankruptcy Court in Texas to seek additional time to formally restructure itself.
The company is now requesting a new filing date of Nov. 29 — one that extends well into the upcoming NHL and NBA regular seasons. If approved, DSG would then have an additional two months to solicit approval for the plan from its creditors.
“The debtors’ Chapter 11 cases are tremendously complex and are occurring while the cable industry is rapidly changing due to subscribers’ persistent ‘cord cutting’ as they move away from traditional cable and satellite multichannel video distributors,” DSG said.
“Navigating these choppy waters requires discussions with, and cooperation from, many parties, including multiple creditor groups, sports leagues, teams, and MVPDs. With the NBA and NHL seasons almost here, and a key MVPD contract up for renewal, the debtors realize that time is short and each day matters.”
Last month, DSG struck a multiyear rights agreement with the NHL’s Los Angeles Kings, a pact it hopes will be a template in the reorganization efforts. But failing a larger, successful reorganization plan, the likelihood of DSG’s liquidation increases sharply.
DSG is also in the midst of an interrelated legal fight with parent company Sinclair Inc.
RSN Changes In Houston
As expected, the Houston Astros and Houston Rockets have acquired the former AT&T SportsNet Southwest from Warner Bros. Discovery and are rebranding the RSN as the Space City Home Network, effective Tuesday.
The RSN will be co-owned by the Astros and Rockets as a joint venture and show both teams, with the network’s first live game being a Rockets preseason contest on Oct. 10.
WBD has signaled its intent to leave the RSN business. The company recently parted with AT&T SportsNet Pittsburgh in a sale to Pittsburgh Penguins owner Fenway Sports Group and is set to shut down AT&T SportsNet Rocky Mountain in Denver.