Breaking: Amazon Invests in Diamond Sports Group; Prime Video to Become Home of Bally Sports+

For the past 10 months, Diamond Sports Group (DSG) has been attempting to navigate bankruptcy proceedings with increasingly dire prospects for a successful resolution. The company that owns all of the Bally Sports regional sports networks (RSNs) and the sports streaming service Bally Sports+ has gone through a painful process of losing team broadcast rights that has led it to the precipice of closing down at the end of the current and upcoming MLB, NBA, and NHL seasons. But on Wednesday, it was announced that Amazon would become a minority investor in the company, aiding in a deal with DSG’s debtors. In return, Amazon’s Prime Video streaming platform will become the primary home for Bally Sports+.

• With its investment, Amazon’s Prime Video will become the primary provider for Bally Sports+.
• Diamond Sports agreed to a $495 million settlement with parent company Sinclair Broadcasting.
• The plan is intended to not only help Diamond emerge from bankruptcy but to allow it to continue operating beyond its current contracts.

The possibility of Amazon becoming involved with DSG was first reported last month, but last week, it appeared that Major League Baseball, as one of the company’s holding DSG debt, had declined the proposal, putting it in jeopardy. Additionally, “Diamond’s key creditors” have agreed to the restructuring that “will be the foundation of the reorganization plan to facilitate Diamond’s emergence from bankruptcy as a going concern,” but it is not clear if MLB is on board.

The terms of Amazon’s investment in DSG were not disclosed, but some of the financial details for the rest of the bankruptcy resolution have been reported. Sinclair Broadcasting Group (SBG), which is ostensibly DSG’s parent company, will pay the subsidiary $495 million to settle a lawsuit claiming that Sinclair funneled $1.5 billion away from the sports streamer that would have kept it solvent.

Diamond will also raise an additional $450 million to help pay off the $350 million that owes its lienholders and has earned agreement from debtors to permit ongoing financing once the company has exited bankruptcy proceedings. DSG is hoping that the new plan will allow the company to continue beyond its current deals with leagues that extend through the 2024 seasons.

“We are thrilled to have reached a comprehensive restructuring agreement that provides a detailed framework for a reorganization plan and substantial new financing that will enable Diamond to operate and thrive beyond 2024,” DSG CEO David Preschlack said. “We are grateful for the support from Amazon and a group of our largest creditors who clearly believe in the value-creating potential of this business. Diamond’s near-term focus will be on implementing the RSA and emerging from bankruptcy as a going concern for the benefit of our investors, our employees, our team, league and distribution partners, and the millions of fans who will continue to enjoy our broadcasts.”

As Prime Video becomes the main distribution partner for Bally Sports+, Diamond’s live MLB, NBA, and NHL games, including all pre and post-game coverage, will be available via Prime Video Channels, however, DSG did not confirm when its direct-to-consumer (DTC) service would be available on the platform, or if it would continue to be available for $19.99 per month.

In terms of the company’s linear channels, no change is expected at this time, so fans will be able to continue watching Bally Sports action on cable, satellite, and live TV streaming platforms at least through the end of the current NBA and NHL seasons, as well as the upcoming MLB campaign.