DIRECTV Joins MLB in Asking Bankruptcy Judge to Deny Diamond Sports Group’s Request for More Time
DIRECTV Joins MLB in Asking Bankruptcy Judge to Deny Diamond Sports Group’s Request for More Time
Diamond Sports Group has requested an extension for turning in its debt resolution plan to a bankruptcy court judge, but DIRECTV thinks the broadcaster has had time enough.
Diamond Sports Group’s (DSG) creditors are running out of patience. The company asked for an extension for its debt reorganization plan from bankruptcy Judge Christopher Lopez at the end of September, which drew an immediate protest from Major League Baseball.
- DIRECTV has also objected to Diamond’s request for more time to craft a plan to climb out of debt.
- The satellite provider is concerned with DSG’s lack of progress since entering Chapter 11 protections in March.
- The main objection from DIRECTV stems from the fact that it is being asked to keep paying for content that no longer appears on Bally Sports channels.
Time’s Up
According to Cablefax, DIRECTV has joined MLB in objecting to the extension request by Diamond. In its filing with the court, DIRECTV argued that much like its dealings with baseball, DSG has spent its time being combative and trying to use Chapter 11 protections to force concessions out of it instead of seeking a deal that could benefit all sides.
“The Debtors recently decided to pursue a similar tactic against DIRECTV, one of their largest and most important partners, by using the automatic stay as a sword to demand payments from DIRECTV for rights they are no longer providing to DIRECTV, while DIRECTV is compelled as a result of the Debtors’ own choices to pay MLB for the very same content that MLB no longer providers to the Debtors,” said DIRECTV’s filing.
In other words, DIRECTV doesn’t feel it should have to pay Diamond full price to show channels like Bally Sports San Diego and [Bally Sports Arizona] which no longer offer the same amount of (or any) live games. The company petitioned Judge Lopez in the name of making lower payments earlier this summer, but DSG has maintained DIRECTV has to keep making full payments while it’s in bankruptcy court.
Juggling Basketballs and Hockey Pucks
Problems with MLB and DIRECTV are not Diamond’s sole concern as it tries to craft a bankruptcy solution. The company holds the rights to 15 NBA and 12 NHL teams as well, and will owe rights payments to both leagues as their regular seasons roll along. DSG wants to cut its scheduled payments to the teams it broadcasts by 20%, and those leagues must either stomach that decrease or face the prospect of having to broadcast the teams themselves after Diamond gives up their rights.
Diamond is also suing its parent company Sinclair Broadcasting Group, claiming that it improperly siphoned $1.5 billion away from the sports broadcasting vertical before putting it into bankruptcy proceedings. Sinclair has asked for that suit to be dismissed, and both sides are awaiting judgment as to how the case will move forward.
Judge Lopez certainly has a lot of filings, statements, and arguments to sort through. It appears that resolution for these various disputes will take time to be achieved, so Diamond’s creditors are stuck in a waiting game, no matter how much they object to it. DIRECTV and its streaming sibling DIRECTV STREAM are some of the only providers left who carry Bally Sports regional sports networks, but they’re losing patience quickly with the owner of those channels.
DIRECTV
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