Diamond Sports Group agrees to new deals with Prime Video, MLB teams

Thursday, Nov. 14 could see the fate of Diamond Sports Group decided once and for all. The regional sports network operator will present its bankruptcy reorganization plan for a confirmation vote by its creditors after nearly two years under Chapter 11 protections. In the final hours before that vote, the company is shoring up as much support as it can get. The company announced a new distribution deal with Prime Video on Wednesday, and also made new agreements with three Major League Baseball teams while seeing MLB drop its objections to the continuance of its deal with the Atlanta Braves.

Key Details:

• Prime Video will distribute all 16 FanDuel Sports Network RSNs in their respective video markets.
• The Los Angeles Angels, Tampa Bay Rays, and Detroit Tigers are going forward with new deals with Diamond.
• The company’s emergence from bankruptcy looks increasingly likely.

Diamond and Prime Video’s deal is a long time in the making. Back in January, the two companies announced an agreement that would see Diamond-owned channels distributed on Prime Video as part of a $115 million investment in the channel owner. However, Amazon seemed to walk away from that deal in August after Diamond missed a key deadline.

Just a couple of weeks later, however, it was reported that the two sides had another agreement in place. The deal’s official announcement does not mention the $115 million investment, but the new partnership will allow Prime Video to stream all 16 FanDuel Sports Network channels in their respective markets. The simplest way to do this would be to offer the FanDuel Sports Network streaming service via an add-on subscription, but the technical details were not disclosed in the press release declaring the new pact.

“Partnering with Prime Video, one of the largest streaming destinations in the U.S., and making FanDuel Sports Network available as part of their add on subscriptions, creates a tremendous opportunity for us to expand our reach and better connect with viewers,” Diamond CEO David Preschlack said. “Our partnerships with Prime Video and FanDuel combine with our agreements with team, league and distribution partners to support a transformative reorganization of our business, and a leading linear and digital offering that will continue driving long-term value and enhanced experiences for our partners and fans.”

In addition to the deal with Amazon, Diamond has three new partnerships with MLB teams to hang its hat on ahead of its reorg vote. Awful Announcing reports that the Los Angeles Angels, Tampa Bay Rays, and Detroit Tigers have go-forward arrangements with the company included in its reorg plan. Diamond announced its intentions to drop all MLB partner clubs except the Atlanta Braves in early October, but since then the Miami Marlins and St. Louis Cardinals have announced new contracts with the company as well.

Crucially, Sports Business Journal reports the Braves and MLB have dropped objections to the continuance of the deal between the club and Diamond. The league first filed that objection last week, saying that Diamond had not been transparent enough about its future plans for staying out of bankruptcy long-term.

It appears the path toward getting its reorganization plan approved and finally emerging from bankruptcy as a going concern has been cleared for Diamond. The company can now head into its Nov. 14 confirmation hearing with confidence that it can continue to offer games from the 13 NBA, eight NHL, and six MLB teams it has current deals with.