E.W. Scripps Already Has Broadcast Agreements with Some Bally Sports Teams in Case Company Folds

Executives at Diamond Sports Group (DSG) are likely wishing they had a fast-forward button to get to the end of the bankruptcy process. Those proceedings have been going since March, and even though the NBA and NHL both start regular season play this month, there are no guarantees that the Bally Sports regional sports networks (RSNs0 responsible for broadcasting 15 NBA teams and 12 NHL squads will be on the air when those seasons conclude.

• E.W. Scripps already has paper contracts with some teams currently covered by Bally Sports channels should DSG surrender their rights.
• Scripps already shows Vegas Golden Knights games on local broadcast channels.
• The Arizona Coyotes are the latest team to be dropped by a Bally Sports channel, and more could be coming.

DSG recently asked the judge presiding over its bankruptcy case for more time to submit a reorganization plan, and reportedly wants to cut its rights payments to teams by 20%. Whether the NBA and NHL are willing to accept such lower payments has yet to be determined, but if they are not, they have a willing partner ready to step in and handle broadcasts of their games.

Scripps Stands Ready

That partner is the broadcasting company E.W. Scripps, which has already struck agreements with the Vegas Golden Knights and the Arizona Coyotes to show those teams on local broadcast channels after their departure from their former RSN homes. A new report from NextTV indicates the company has already drawn up contracts with some teams covered by a Bally Sports channel if DSG goes under in the next few months, and is in discussion with others.

“Every team associated with Bally is concerned about the future,“ Lawlor said. “As a result they are all doing contingency planning for the short term and the longer-term. We’ve been able to advance discussions about contingency plans all the way to actually written contracts that if Bally were to go away, we have agreements already in place that we would be the partner to be able to take over distribution and production and begin immediately.”

There’s a good chance that if any of these teams are pulled from a Bally Sports RSN, Scripps would also help create an in-market streaming platform to allow fans without a cable or satellite subscription to watch their games. The Golden Knights recently launched such a streamer called KnightTime+, which is now available.

Lawlor says that the biggest challenge is getting major providers to offer ION and other Scripps channels that are not affiliated with a major network. But the power of live sports should convince these providers to play ball; after all, WNBA games on ION drew 6 million viewers over 16 weeks this season, which Lawlor says were better than ESPN and ESPN2’s numbers combined.

“Fans are going to demand that they have access to their sports,” he said. “[Providers] need to get on board.”

Can Diamond Survive?

There are conflicting reports regarding DSG’s strategy for the future. Some suggest the company is only aligning things to shutter its doors for good next season, while others outline it’s willing to fight for its life in 2024 and beyond. Diamond may willingly surrender some contracts this NBA and NHL season, whittling down its financial responsibilities and ditching agreements that cost it money instead of bringing in a profit.

The NBA’s contract with Diamond stipulates that one missed payment to any team gives the league grounds to liquidate all of its deals with the company, but many believe the NBA and NHL will stick by DSG for the rest of this season if possible. That will give them more time to figure out what to do with the local rights to teams on Bally Sports channels next year.

If things come to a head before then, however, it appears more fans will be able to watch their favorite NBA and NHL teams on Scripps-owned channels. The broadcaster has agreements with several teams in place already and can hop into action quickly if more Bally Sports channels go dark in the coming months.