Diamond Sports Group to exit bankruptcy after reorg plan gets approval
The regional sports network broadcaster’s plan for emerging from Chapter 11 has been approved after nearly two years of proceedings.
At long last, Diamond Sports Group is ready to leave the shelter of Chapter 11 protections. The regional sports network (RSN) broadcaster has been in bankruptcy proceedings since March 2023, but on Thursday announced that it had won approval for its reorganization plan. That means the company can now leave bankruptcy and continue as a going concern, offering local games from nearly 30 NBA, NHL, and MLB teams.
Key Details:
- Diamond says it expects to fully emerge from bankruptcy in the next few weeks.
- The company received “nearly unanimous” support for its reorg plan.
- The company will continue to distribute FanDuel Sports Network channels and the FanDuel Sports Network streaming service.
As per the terms of the restructuring plan, Diamond will reduce its debt from $9 billion to around $200 million. The company will have more than $100 million in cash on its balance sheet when restructuring is complete, and equity interests from Diamond’s former parent company Sinclair Broadcasting Group will be canceled.
“Today is a landmark day for Diamond, as we embark on a new path for our business,” Diamond CEO David Preschlack said. “Diamond is now unencumbered by legacy debt, financially stable and enthusiastically supported by new ownership. Over the last eighteen months, we have worked tirelessly to strengthen our business, including by reaching revised multi-year rights agreements with team and league partners, go-forward carriage agreements with major distribution partners, a broad naming rights partnership with FanDuel and a commercial agreement with Amazon. These critical achievements and a realigned business are enabling us to emerge as a sustainable, go-forward entity that drives value for our partners and fans.”
The company says it will finish restructuring and leave bankruptcy behind in the coming weeks. It also says that nearly all of its various creditors approved the reorganization plan, which is an impressive feat in and of itself. Major League Baseball was one entity that many observers thought might object, but it withdrew its opposition to Diamond’s plan to continue offering Atlanta Braves games earlier this week.
Diamond also agreed to a distribution deal with Amazon, allowing for its 16 regional sports networks (RSNs) to be shown in their various markets as an add-on to Prime Video. The name of those RSNs has changed since Diamond entered bankruptcy, as well; until October, they were known as Bally Sports channels. The company agreed to a new branding deal with FanDuel just weeks ago, and going forward the channels will be called FanDuel Sports Networks.
The 13 NBA teams and eight NHL clubs that are partnered with Diamond will all stream on its direct-to-consumer service FanDuel Sports Network, with plans starting at $20 per month. Diamond is also partnered with six MLB teams, but formerly only a handful of the MLB clubs it showed on linear TV sent their digital rights to what was then known as Bally Sports+. It remains to be seen which teams outside the St. Louis Cardinals will stream on FanDuel Sports Network.
The RSN marketplace has undergone drastic changes in the past few years, and Diamond is the biggest player left standing in the industry. Its bankruptcy proceedings have not always been easy, and things looked like they would fall apart for the company more than once. But those days are over, and in the coming weeks, Diamond will emerge from Chapter 11 as a fully functional business once again.
FanDuel Sports Network
FanDuel Sports Network is a direct-to-consumer streaming service that offers live games for those who want access to your local FanDuel Sports Network RSN without subscribing to a cable or satellite package.