Diamond Sports Group Wins Approval for Disclosure Statement in Bankruptcy Court, Could Exit Bankruptcy in June
Diamond Sports Group Wins Approval for Disclosure Statement in Bankruptcy Court, Could Exit Bankruptcy in June
Creditors have until May 22 to vote on Diamond’s reorganization plan, and its next hearing is set for June 18.
As of Wednesday, Regional sports network owner Diamond Sports Group (DSG) is a few steps closer to pulling itself out of bankruptcy. The owner of Bally Sports RSNs was in court for its latest hearing on April 17, where it received approval for its disclosure statement from Judge Christopher Lopez. That means that it can now solicit approval for its reorganization plan, which if assented to by its creditors will allow it to leave the shelter of Chapter 11 protections and emerge as a going concern.
- Diamond also won approval for its request to extend its solicitation period until November.
- Its creditors have until May 22 to accept or reject the company’s reorg plan.
- The broadcaster may have trouble reaching a long-term deal with the NBA.
Diamond’s 174-page disclosure agreement included details of its history, its assets, and a summary of its reorganization plan. Now that it’s been approved by the judge, it will be sent to DSG’s various creditors for approval or rejection. Those creditors have until May 22 to make any objections to the plan known to the court.
Judge Lopez also gave the thumbs-up to Diamond’s request for an extension of its solicitation period for the plan until November. The NBA and NHL raised some concerns about that request, but the judge dismissed them, saying that the filing was only a preventative measure and echoed Diamond’s sentiments that it was unlikely to take that long for the company to wrap up all outstanding issues.
Diamond will head back to court on June 18 for a confirmation hearing. High on its list of priorities is long-term carriage deals with Comcast and DIRECTV, which together serve more than 25 million viewers in the United States. Charter Communications reached a long-term contract with Diamond to keep carrying Bally Sports channels at the beginning of April.
Will NBA Give Diamond Trouble in Coming Months?
MLB has been the most frequent antagonist for Diamond through its bankruptcy proceedings, but the NBA may be preparing to dig in its heels against the company next. According to Sportico DSG has submitted long-term broadcast contracts to both the NBA and NHL, but the Association says it will not even think about agreeing to a long-term contract with Diamond until after it has completed its national broadcasting deals.
The NBA’s exclusive negotiating window with Disney and Warner Bros. Discovery to keep games on ESPN and TNT concludes on April 22, and the league is widely expected to continue sending packages of games to both channels. The NBA also reportedly wants to sell a streaming-exclusive bundle of games to a provider like Prime Video. It could take weeks, or even months following the end of the exclusive window for the NBA to finalize agreements with other providers.
The NBA had a short-term agreement in place with Diamond agreed to just after the start of the 2023-24 season that would have seen the league reclaim all of its broadcasting rights at the end of the year. But its reorganization plan cancels out that deal, and now the two sides have to work out a new arrangement.
It’s been a long and sometimes tortuous year for Diamond in court, but it looks as if it’s finally ready to pull out of bankruptcy and resume operations as a viable business. Next up is determining how Amazon's promised $115 million investment will affect how Diamond offers games; will teams appearing on its streaming service Bally Sports+ also become available on Prime Video? It appears we’ll get an answer once DSG secures approval of its bankruptcy plan from its creditors.
Bally Sports+
Bally Sports+ was a direct-to-consumer streaming service that provided live, in-market games without requiring a cable or satellite subscription. It allowed fans to watch their local Bally Sports regional sports network (RSN) without a traditional TV package.