Wikipedia

Diamond Sports Group

Diamond Sports Group LLCis an Americanmediaand entertainment company. The company operatesFanDuel Sports Network,a group of regional sports channels that was formerly known as theFox Sports NetworksandBally Sports.The company also has a stake inYES Network.

Diamond Sports Group LLC
Company typePrivate
IndustrySports
FoundedMay 3, 2019;5 years ago(2019-05-03)
Area served
United States
Key people
David Preschlack (CEO)
David DeVoe (CFO and COO)
Randy Freer(board member)
Mary Ann Turcke(board member)
Bob Whitsitt (board member)
Chris Ripley (board member)
ServicesFanDuel Sports Network
OwnersSinclair Broadcast Group
Allen Media Group

History

edit

Sinclair Broadcast Groupformed the company withByron Allen'sAllen Media Groupto acquire 22 regionalFox Sports Networksaffiliates andFox College SportsfromThe Walt Disney Company,which was required to divest of these networks to secure government antitrust approval.[1]The transaction, initially valued at $10.6 billion, is managed through a joint venture called Diamond Holdings Group,[2]and formally closed the transfer in August 2019 for $9.6 billion.[3]

The company'sregional sports networkshave exclusive broadcasting rights to 42 professional teams (including 16National Basketball Associationteams, 14Major League Baseballteams, and 12National Hockey Leagueteams),[4]and the channels collectively generated $3.8 billion in 2018, across nearly 75 million subscribers.[2]

Sinclair took a $4.23 billion write-down of its regional sports assets in 2020 after a downturn in the business.[5]

On November 18, 2020, Sinclair announced that it had entered into an agreement with casino operatorBally's Corporationto acquire the naming rights under a 10-year deal.[6]

On January 27, 2021, Sinclair announced that the networks would be rebranded asBally Sportson March 31.[7][8][9]In December 2021, the company reached an extension agreement with the National Hockey League.[10]

On May 2, 2022, Diamond Sports Group assembled a board of five directors, made up of Bob Whitsitt, Sinclair CEO Chris Ripley,Randy Freer,a formerFox Sports/Huluexecutive,Mary Ann Turcke,a former COO of theNFL,and David Preschlack (previously President of theNBC Sports Regional Networks); Preschlack would be elected CEO of Diamond on December 5.[11]

On June 23, 2022, Bally Sports soft-launched a direct-to-consumer service known asBally Sports Plus(or Bally Sports+) in selected markets. It is expected to launch nationally in the remainder of the networks' footprint on September 26.[12]

On December 4, 2022, Diamond Sports Group's board had voted to block the Sinclair Broadcast Group from operating Diamond and its regional sports networks.[13]

An email from Diamond CEO David Preschlack announced on March 20, 2023 that Steve Rosenberg would no longer be the president of Diamond Sports Group; Rosenberg's last day as president of Diamond was March 19. With his departure, Diamond's chief financial officer David DeVoe will take on the role of COO.[14]

On May 1, 2024,cable companiesXfinityandMidcodropped the Bally Sports networks as part of acarriage dispute.[15][16]Optimumdid the same on July 1, 2024.[17]On July 29, 2024, Comcast reached a new carriage agreement with Xfinity. The agreement moved Bally Sports to the Xfinity "Ultimate TV" tier instead of the basic service.[18]

On October 18, 2024, Diamond announced a new naming agreement withFanDuel,which will saw Bally Sports rebranded as the FanDuel Sports Network on October 21.[19][20]The naming rights will be paid for via an annual rights fee, and advertising commitments. FanDuel will also have the option to acquire a 5% equity stake in Diamond once it exits Chapter 11 bankruptcy.[21][22]

Bankruptcy (2023–24)

edit

On March 14, 2023, Diamond Sports filed forChapter 11 bankruptcy,[23]30 days after they failed to make a $140M interest payment.[24]Diamond’s first-lien lenders will not be affected as part of the restructuring support agreement, but other creditors will convert their debt into equity. Diamond also separated from its parent Sinclair and became an entirely new entity.[25]Diamond Sports Group successfully emerged from bankruptcy on November 14, 2024.[26]

During its bankruptcy, Diamond has ended its broadcasting agreements or lost the rights to theArizona Diamondbacks,Cincinnati Reds,Cleveland Guardians,Milwaukee Brewers,Minnesota Twins,San Diego Padres,andTexas RangersofMajor League Baseball(MLB), theAnaheim Ducks,Arizona Coyotes,Dallas StarsandFlorida Panthersof theNational Hockey League(NHL), theDallas Mavericks,Phoenix SunsandNew Orleans Pelicansof theNational Basketball Association(NBA), theACC on Regional Sports Networkspackage fromRaycom Sports,theOrange Bowl Classicmen'scollege basketballtournament from theOrange Bowland theMVC Networkfrom theMissouri Valley Conference.[27][28][29][30]Diamond has also missed payments to theTexas Rangers,Cleveland Guardians,Cincinnati RedsandMinnesota Twinsof MLB and theOrlando Magicof the NBA.[31][32][33][34][35][36][37][38]

On April 28, 2023, thePhoenix Sunsof the NBA andPhoenix Mercuryof theWomen's National Basketball Association(WNBA) announced they had signed a five-year agreement withGray Televisionto replaceBally Sports Arizonaas its local television partners.[39]After the announcement, Diamond Sports Group accused the team of breaching its contract and bankruptcy law, stating that the team was making an "improper effort" to "change their broadcasting partner without permitting Diamond to exercise our contractual rights." In response, Suns CEO Josh Bartlestein stated that "Diamond's position is totally inaccurate. We are moving forward with this deal and could not be more excited about what it means for our fans and our future."[40][41][42]On May 10, 2023, the bankruptcy judge voided the Suns contract with Gray, ruling that the Suns violatedBally Sports Arizona's contractual right of first refusal. He ordered the parties into arbitration. The Phoenix Mercury's deal was not affected.[43]On July 14, 2023, the deal became official when Diamond declined to match Gray's contract offer.[44]

On May 31, 2023, Diamond officially missed a second payment to the Padres, and the Padres' television rights were returned to Major League Baseball. BecauseBally Sports San Diego,which aired Padres games, is ajoint venturebetween the Padres and Diamond it is technically not in bankruptcy. Therefore this missed payment did not have the same bankruptcy protections that Diamond's other missed payments had.[45][46]Padres games will be available blackout free onMLB.tv,as well as through channels on select cable providers, includingYurView California,in theSan Diegoarea.MLB Networkwill produce the games with the Padres' regular commentators.[47][46]

On June 14, 2023, Diamond rejected its contract withRaycom Sportsto distribute a package ofAtlantic Coast Conference games,freeing Raycom to sell the package to other networks.[48]A month later, Raycom announced thatThe CWhad bought the rights.[49]

On June 22, 2023, Diamond announced its intention to reject its contract with the Arizona Diamondbacks on June 30, 2023.[50]Diamond and the Arizona Diamondbacks later released a joint statement pushing back the hearing and agreeing to continue Diamond's broadcast of Diamondbacks' games.[51]The contract was officially rejected on July 18. As for the Padres, Major League Baseball took over production.[52]

On July 21, 2023, Diamond sued the Sinclair Broadcast Group, their parent, over transactions made when Sinclair had control over the company. Diamond alleged that Sinclair made transactions that were designed to benefit itself while hurting its subsidiary.[53]On August 11, 2023, the bankruptcy judged granted an 80 day extension to Diamond Sports to file their reorganization plan. The plan is due on September 30.[54]

On September 28, 2023, theNew York Postand Next TV reported that Diamond Sports had reached one-yearcarriage agreementswithDirecTVandComcastprior to their restructuring deadline.[55][56]On September 29, Diamond Sports requested a 60-day extension to file their reorganization plan.[57]On October 11, 2023, Major League Baseball filed a notice opposing Diamond Sports' request for an extension. The MLB also asked the bankruptcy court to force Diamond to decide on whether the company would air games from theAtlanta Braves,Cleveland Guardians,Detroit Tigers,Milwaukee BrewersandTexas Rangersin2024.[58]

On October 1, 2023, Diamond Sports missed a payment to the Orlando Magic of the National Basketball Association. But, on November 6, 2023, Diamond Sports and the National Basketball Association reached a one-year agreement that will result in the contracts for NBA teams airing on Diamond expiring after the2023–24 NBA seasonbut will result in the Orlando Magic being paid. Across the board, all NBA teams airing on Diamond Sports will receive a 16% reduction in the money they receive from Diamond Sports but will be able to sell 10 games exclusively to localover-the-air networks.[59][33]The sold games will continue to be produced by Bally Sports.[60][61]

On October 4, 2023, Diamond announced that it intended to reject its contract with the Arizona Coyotes.[29]The next day,Scripps Sportsannounced it had acquired the rights and that games would air onKASW.[62]As a result, with no remaining professional sports rights,Bally Sports Arizonawas shut down on October 21, 2023.[63][64]On October 10, 2023, Diamond announced that it intended to reject its contract with theOrange Bowlfor itsOrange Bowl Classicmen'scollege basketballtournament.[28]

On December 20, 2023, Diamond Sports and the National Hockey League reached a similar agreement to the NBA's November 6 deal that will also result in the contracts for all NHL teams airing on Diamond expiring after the2023–24 NHL season,pending approval by the bankruptcy court.[65]

On January 17, 2024, Diamond Sports announced a restructuring agreement after tentatively securing a $115 million investment fromAmazon,which would result in a 15% share of the company, and reaching an agreement with the Sinclair Broadcast Group for a $495 million cash payment to settle an earlier lawsuit.[66]On January 26, 2024, committee of unsecured creditors objected to the restructuring agreement, arguing that financing in the restructuring agreement did not have the committee's best interests in mind.[67]The restructuring agreement supersedes the prior agreements with the NHL and NBA, so rights for the NBA and NHL will no longer expire following the 2023–24 season.[68]

On February 2, 2024, Diamond Sports announced agreements with the Texas Rangers, Cleveland Guardians and Minnesota Twins of Major League Baseball that will result in a decreased rights fee and will end their contracts with Diamond after the 2024 season.[69][70]

Diamond Sports Group officially filed its reorganization plan on March 1, 2024. As part of the plan, Diamond will end its naming rights deal withBally's Corporationand rebrand its networks by the end of the2024 MLB season.[71]

On July 2, 2024,Bally Sports Floridaand theFlorida Panthersof the National Hockey League mutually agreed to terminate their broadcasting contract early. That same day, the Panthers announced a new agreement withScripps Sports.[72]The next day on July 3, Diamond asked the court to terminate its contract with theDallas Stars.The Stars did not object to the request,[73]and announced an agreement to launch a newfree ad-supported streaming television(FAST) platform known asVictory+to carry its games.[74]

On August 23, 2024, Diamond Sports announced long-term agreements with nine of its NHL teams and thirteen of its NBA teams, committing to carry at least the teams' 2024–25 seasons, and further seasons pending the resolution of its bankruptcy; if Diamond Sports is unable to get a bankruptcy plan approved by the court, the NBA and NHL agreements will expire following the end of each league's 2024–25 season. The agreement will result in NHL teams having a 20 percent reduction in their rights fees and NBA teams having a 30 to 40 present reduction in their rights fees. In addition, Bally rejected its contracts with theDallas MavericksandNew Orleans Pelicans.[75][76]Three days later, it was reported that Amazon had withdrawn its plans to invest in the restructured company due to structural changes and a focus on its ownnational sports portfolio,but that Diamond still had enough investors to submit a "viable" restructuring plan.[77]

While theAnaheim Duckswere initially announced by Bally as having renewed its rights under the new agreements,[75]on August 27 the team instead announced that it would carry its games onKCOP-TVand Victory+ under a two-year deal.[78]

On October 2, 2024, Diamond stated that it plans to renegotiate its contracts with the Cincinnati Reds, Detroit Tigers, Kansas City Royals, Los Angeles Angels, Miami Marlins, St. Louis Cardinals, and Tampa Bay Rays. If the teams are unable to agree to a new contract with Diamond, their contract will be rejected. The Atlanta Braves are the only team not affected by the announcement.[79]On October 8, 2024, after their contracts expired with Diamond,MLB Local Mediaacquired the rights to the Milwaukee Brewers, Cleveland Guardians, and Minnesota Twins.[80][81]

Diamond Sports announced new agreements with Marlins, on October 18, and the Cardinals, on November 7.[82]For the first time, the Cardinals will be availabledirect-to-consumerlocally through theFanDuel Sports Network app.[83]On November 8, the Reds and Diamond announced a settlement which will officially end their contract.[38]

On November 8, 2024, Major League Baseball and the Atlanta Braves officially objected to Diamond Sports' reorganization plan, saying they had "grave concerns" about the companies' future viability.[84]However, on November 13, 2024, Major League Baseball and the Braves dropped their objection, after Diamond Sports reached amended agreements with the Braves, Los Angeles Angels, Tampa Bay Rays, and Detroit Tigers. Diamond Sports will acquire localdirect-to-consumerstreaming rights for all the teams it renegotiated with.[85]The Kansas City Royals later renegotiated with Diamond Sports Group in December.[86]

Teams that changed rights during bankruptcy

edit
TV rights status for teams that changed their TV during the Bally Sports bankruptcy
Team Date of action Status
ACC on Regional Sports Networks March 2023, June 2023 Missed payment in March 2023. Contract terminated in June 2023, TV rights returned toRaycom Sports[48](Sublicense acquired byThe CW)
Anaheim Ducks August 2024 Contract expired after 2023–24 season, TV rights acquired byVictory+andKCOP-TV[78]
Arizona Coyotes October 2023 Contract terminated prior to 2024–25 season, TV rights acquired byScripps Sports(Franchise now defunct)[62]
Arizona Diamondbacks March 2023, July 2023 Missed payment prior to 2023 MLB season, later paid. Contract terminated mid-way through 2023 MLB season, TV rights returned to MLB[51]
Atlanta Hawks January 2024 10 games acquired byGray Television,remaining games on Bally Sports[87]
Cincinnati Reds April 2023, November 2024 Missed payment in April 2023, later paid in full. Contract terminated following 2024 MLB season. Rights acquired by MLB.[88][89][38][90]
Cleveland Cavaliers February 2024 5 games acquired byGray Television,remaining games on FanDuel Sports Network[91]
Cleveland Guardians April 2023, February 2024, October 2024 Missed payment in April 2023, later paid in full. Contract renegotiated in February 2024, will expire after 2024 season. Rights returned to MLB for 2025 season.[92][70][30]
Dallas Mavericks January 2024, August 2024 For the 2023–24 season, 10 games acquired byTegna Inc.,remaining games on Bally Sports.[93]Contract terminated prior to the 2024–25 season, TV rights acquired by Tegna Inc.[94]
Dallas Stars July 2024 Contract terminated prior to the 2024–25 season, TV rights acquired byVictory+[73][95]
Detroit Tigers October 2024 Contract renegotiated following 2024 MLB season[89][85]
Florida Panthers July 2024 Contract terminated prior to the 2024–25 season, TV rights acquired byScripps Sports[72]
Kansas City Royals December 2024 Contract renegotiated following 2024 MLB season.
Los Angeles Angels October 2024 Contract renegotiated following 2024 MLB season[89][85]
Los Angeles Kings September 2023 Contract expired after 2022–23 season, re-signed with Bally Sports with 6 games acquired byCBS News and Stations.Multi-year agreement.[96]
Miami Marlins October 2024 Contract renegotiated following 2024 MLB season[89][85]
Milwaukee Brewers October 2024 Contract expired following 2024 MLB season, rights returned to MLB.[97][30]
Milwaukee Bucks January 2024 10 games acquired byWeigel Broadcasting,remaining games on Bally Sports[98]
Minnesota Twins April 2023, February 2024, October 2024 Missed payment in April 2023, later paid in full. Contract renegotiated in February 2024, will expire after 2024 season. Contract returned to MLB for 2025 season.[99][70][30]
Missouri Valley Conference Network September 2024 Contract expired following 2023–24 season, TV rights acquired byGray Television[27]
New Orleans Pelicans January 2024, August 2024 For the 2023–24 season, 10 games acquired byGray Television,remaining games on Bally Sports. For the 2024–25 season, contract terminated and TV rights acquired by Gray Television.[100][101][102]
Oklahoma City Thunder January 2024 8 games acquired byGriffin Media,remaining games on Bally Sports[103]
Orlando Magic October 2023 Missed payment in October 2023, later paid in full[33]
Phoenix Suns July 2023 Contract expired following 2022–23 season, TV rights acquired byGray Television[44]
San Diego Padres March 2023, May 2023 Missed payment in March 2023, later paid. Contract terminated in May 2023, TV rights returned to MLB[45]
St. Louis Cardinals November 2024 Contract renegotiated following 2024 MLB season. Will now be availabledirect-to-consumervia theFanDuel Sports Network app[104]
Tampa Bay Rays October 2024 Contract renegotiated following 2024 MLB season[89][85]
Texas Rangers October 2024 Contract terminated following 2024 season[89]

References

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  84. ^Piazza, Jake; Rizzo, Lillian (November 8, 2024)."CNBC Sport MLB, Braves object to Diamond Sports reorganization plan, question company's future viability".CNBC.RetrievedNovember 8,2024.
  85. ^abcdeLerner, Drew (November 13, 2024)."Diamond bankruptcy exit looks likely, deals reached with three more MLB teams".Awful Announcing.RetrievedNovember 13,2024.
  86. ^"Royals games will be available on FanDuel Sports Network for 2025".Royals.com.December 3, 2024.RetrievedDecember 7,2024.
  87. ^"Atlanta Hawks Partner with Gray's Peachtree TV to Broadcast 10 Games Free, Over the Air".NBA.com(Press release). December 30, 2023.
  88. ^Gray, Doug (June 15, 2023)."What's next for the Cincinnati Reds and Bally Sports Ohio?".RetrievedJuly 8,2023.
  89. ^abcdefCrupi, Anthony (October 2, 2024)."Diamond Sports Group Plans to Drop All MLB Teams Except Braves".Sportico.RetrievedOctober 2,2024.
  90. ^"MLB to produce, distribute local Reds broadcasts in 2025".November 14, 2024.RetrievedNovember 14,2024.
  91. ^"Cavs Partner with Gray Television to Broadcast Select Games for Free Across Ohio".NBA.com.February 13, 2024.RetrievedFebruary 13,2024.
  92. ^Frankel, Daniel (July 7, 2023)."Diamond Pays the Cleveland Guardians to Keep Them on Bally Sports Through July".RetrievedJuly 8,2023.
  93. ^"WFAA to locally broadcast 10 of the Dallas Mavericks' remaining 2023-2024 NBA regular season games".wfaa.com.2024-01-23.Retrieved2024-09-06.
  94. ^"Dallas Mavericks, WFAA sign multi-year deal to broadcast games over-the-air for free".wfaa.com.2024-09-06.Retrieved2024-09-06.
  95. ^"Stars and APMC pioneer game-changing VICTORY+ Sports Network".NHL.com.RetrievedJuly 8,2024.
  96. ^"LA Kings Announce Television Schedule For 2023-24 Regular Season".NHL.com(Press release). September 14, 2023.
  97. ^"Diamond Sports Group won't carry 11 MLB teams in 2025".ESPN.October 2, 2024.RetrievedOctober 2,2024.
  98. ^"WMLW The M to air 10 premium Milwaukee Bucks games".WMLW.January 28, 2024.
  99. ^Miller, Phil (July 1, 2023)."Twins games will remain on Bally Sports for remainder of 2023 season".Star Tribune.RetrievedJuly 8,2023.
  100. ^"WAFB will televise 10 of this season's Pelicans games"(Press release).WAFB.December 30, 2023.RetrievedDecember 30,2023.
  101. ^Clark, Christian (August 6, 2024)."Pelicans ditch Bally Sports, enter partnership with local station for new TV deal".NOLA.com.RetrievedAugust 6,2024.
  102. ^Kaplan, Daniel (August 23, 2024)."Bally Sports RSNs reach new agreements with NHL, NBA for 2024-2025 seasons".Awful Announcing.RetrievedAugust 23,2024.
  103. ^"Thunder, Griffin Media Announce Plans to Air Remaining Friday Regular-Season Games".NBA.com.RetrievedJanuary 10,2024.
  104. ^"Cardinals announce multiyear deal with Diamond Sports Group".cardinals.com.November 7, 2024.RetrievedNovember 7,2024.
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