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DSG’s Bankruptcy Reorg Could Put NBA Teams’ Local TV Deals at Risk

  • Diamond Sports Group partners could lose up to 40% in their regional TV deals.
  • Amazon could swoop in as an option for other franchises.
Bally-Sports
Jerome Miron-USA TODAY Sports

Diamond Sports Group, the regional sports network that filed for bankruptcy last year, could leave up to five NBA teams without a local broadcasting partner if it’s able to complete its reorganization and continue operation.

The company could terminate its RSN deals with the Mavericks, Pelicans, Thunder, Pistons, and Grizzlies, according to Sports Business Journal, though DSG could limit it to only three of those teams.

The other 10 teams that DSG has deals with—the Bucks, Cavaliers, Clippers, Hawks, Heat, Hornets, Magic, Pacers, Spurs, and Timberwolves—should expect their contracts to remain intact. However, their fees are expected to be cut by about 30% to 40% for the 2024–2025 season, which could mean as much as $16 million in lost revenue for the franchises.

The five franchises in danger of losing their deals with DSG are already in the process of finding alternative methods to air their games locally. Four of the teams, excluding the Grizzlies, aired at least five games through local, over-the-air channels last season. Moving games to over-the-air networks would emulate the Suns and the Jazz, who also have direct-to-consumer packages available for their fan bases.

While the Jazz reportedly nearly tripled their viewership because of the move to free, over-the-air television, they did not come close to hitting previous revenue marks. But given the revenue cut that the franchises tied to DSG will likely receive, it’s still unclear whether the better long-term play is through free or paid distribution.

Here Comes Amazon

Amazon is the newest player in the NBA’s national media-rights deal, as the league partnered with incumbent Disney and old friend NBCUniversal.

The streaming giant has now emerged as an option to create a national regional network, especially as it has already agreed to a $115 million deal with DSG for 15% of the company once it exits bankruptcy.

Amazon has wide distribution with Prime Video, but it has also shown a commitment to sports, from acquiring the rights to major playoff games to smaller regular-season contests across several sports. 

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