Diamond Sports Group, the bankrupt operator of Bally Sports channels, has recently secured new deals with both the NBA and the NHL. These agreements ensure that Diamond will continue to broadcast games for teams under its portfolio at least through their upcoming 2024-25 seasons. The new deals also involve changes to both linear and direct-to-consumer rights, marking a significant development for the embattled sports broadcaster.
As part of its updated agreement, Diamond has made the decision to drop the NBA’s Dallas Mavericks and New Orleans Pelicans from its lineup. This move leaves the company with 13 NBA teams and nine NHL teams in its broadcasting portfolio. The termination of contracts with these two NBA teams signals a strategic shift for Diamond as it navigates its way through bankruptcy proceedings and attempts to stabilize its operations for the future.
Diamond’s confirmation hearing, originally scheduled for June 18, was postponed to the end of July. However, following an unexpected resolution with Comcast that ended a lengthy dispute affecting MLB teams, Diamond requested further extension. The company now faces the task of crafting a reorganization plan that addresses concerns regarding its economic viability moving forward. While a new confirmation date is pending, the process is expected to extend into the upcoming NBA and NHL seasons and possibly overlap with MLB’s offseason.
CEO’s Perspective
In a statement, Diamond CEO David Preschlack expressed gratitude for the ongoing partnerships with the NBA and the NHL. Preschlack highlighted that the new agreements regarding linear and direct-to-consumer rights are crucial milestones in Diamond’s journey towards emergence from bankruptcy. He emphasized the company’s commitment to providing value for its sports partners and catering to the passionate local fans of NBA, NHL, and MLB teams.
With the NHL regular season commencing on October 8 and the NBA following suit on October 22, Diamond faces a race against time to finalize its reorganization plan and seek court approval. The company holds broadcast rights for nine NHL teams and 13 NBA teams, positioning itself as a crucial player in the sports broadcasting landscape. While details of the new deals remain undisclosed, it is clear that Diamond’s focus is on securing long-term stability and viability in the competitive sports media industry.
Future Prospects
As Diamond prepares to present its new deals to a bankruptcy judge on September 3, the outcomes of these negotiations will shape the company’s future trajectory. Success in emerging from bankruptcy will allow Diamond to continue its partnerships with the NBA and the NHL until the conclusion of the 2024-25 seasons. However, the road ahead is fraught with challenges, and Diamond must navigate through the complexities of the restructuring process to ensure a sustainable and prosperous future for its sports broadcasting business.
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