Diamond Sports Group Closing in on New Comcast Deal, But Admits Liquidation Still Possible
Bally Sports channels have been unavailable for Comcast cable subscribers since the start of May, but they could be nearing restoration.
Diamond Sports Group is inching closer and closer to a new carriage deal with Comcast. The sports broadcaster which owns the Bally Sports family of regional sports networks (RSNs) is nearing its 17th month of bankruptcy proceedings but looks close to achieving one of its most important goals by reaching a new deal with Comcast. DSG’s representatives said in court this week that a deal was close at hand, but also openly discussed the possibility that even if an agreement is reached in the coming days, it may not be enough to ultimately stave off liquidation.
Key Details:
- Diamond has asked for another delay for the confirmation hearing of its reorganization plan to continue negotiating with Comcast.
- The cable distributor has steadfastly refused to allow Bally Sports channels to stay on its base channel packages.
- Company representatives promised to “pivot quickly” if its reorg plan is not approved by creditors.
Xfinity TV customers have been without Bally Sports channels since the end of April when the carriage dispute between the two sides forced them off the air for 14 million+ customers. The heart of the schism between the two was Comcast’s insistence that Bally Sports RSNs move to a higher-priced cable package immediately, while Diamond wanted to keep them on the lowest possible package for a little while longer before an eventual move up.
The two sides were far apart on a deal when negotiations shut down, and the phone lines stayed quiet until mid-July when the companies began talking once again. According to DSG’s attorney Brian Hermann, a deal could be announced any day.
“We believe that we have made substantial progress on resolving our issues with Comcast, and we have the intention of fully documenting and executing an agreement with Comcast to broadcast our RSNs in the very near term,” he said in a hearing on Wednesday.
What Are Diamond’s Next Steps After Comcast Negotiations?
With the good news of a potential deal in sight with Comcast comes more delays. The confirmation hearing for Diamond’s bankruptcy reorganization plan was originally slated to take place in mid-June but was delayed until July 29. Now the hearing must be pushed again to give Diamond the time it needs to close a deal with Comcast.
Even with that deal in hand, DSG has prepared for the possibility that its creditors will refuse to go along with the plan. Hermann acknowledged that liquidation is still a distinct possibility for Diamond, a prospect that hasn’t been raised too often in the more public setting of the courtroom.
“If we conclude that we cannot reorganize the business, which is a possibility, we will similarly pivot quickly and [ask] for the court to discuss the best way to proceed from there,” he said. “That’s not our focus today, but that is a possibility, and it’s not lost on us.”
Diamond is also seeking new, long-term arrangements with the NBA and NHL, whose regular seasons are fast approaching. DSG’s representatives acknowledged the need for haste in its talks with Comcast and gave reasons for optimism with the two leagues as well.
“The other good news that we have to report is that the company is in very active dialogue and productive discussions with each of the NBA and NHL,” Hermann said. “While no agreements have been reached at this time, these discussions are ongoing … with significant progress being made.”
MLB is not talking about a new deal for its partner teams with Diamond, but will not prevent clubs from striking new agreements with the broadcaster on their own. The Cleveland Guardians, Minnesota Twins, and Texas Rangers are all on one-year deals with Diamond and may decide to await the outcome of proceedings this summer before deciding whether or not to pursue new deals with the broadcaster.
The latest delay for Diamond’s confirmation hearing is indefinite, and likely won’t be set until a deal with Comcast is announced. The tortured saga of DSG’s bankruptcy proceedings marches forward, with the company and partner leagues alike hoping resolution is near.
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