Still In The Game: Diamond Sports Group Emerges From Chap. 11 Bankruptcy

By Barry Janoff
November 14, 2024: The show will continue to go on for Diamond Sports Group.
A regional sports network division of the Sinclair Sports Group, Diamond Sports Group officially filed for bankruptcy in March of 2023.
Today, Diamond Sports Group said the U.S. Bankruptcy Court for the Southern District of Texas “approved Diamond’s Plan of Reorganization to emerge from Chapter 11 bankruptcy protection.”
Diamond Sports Group, the largest operator of regional sports networks in the nation — including MLB, NHL and NBA teams — said it expects to complete the restructuring process in the coming weeks, after satisfying customary conditions.
“The Plan received nearly unanimous support from Diamond Sports Group’s almost $9 billion in funded debt holders.”
Under the terms of the Plan, Diamond Sports Group would “complete a comprehensive balance sheet restructuring that will reduce its debt from almost $9 billion to $200 million.
“Upon completion of its restructuring, Diamond will be well capitalized with more than $100 million in cash and cash equivalents on its balance sheet.”
“Today is a landmark day for Diamond, as we embark on a new path for our business,” CEO David Preschlack said via Diamond Sports Group. “Diamond is now unencumbered by legacy debt, financially stable and enthusiastically supported by new ownership.”
In October, Diamond Sports Group and FanDuel online gaming company signed what was called a broad, long-term commercial partnership, including exclusive rights to rename Diamond Sports Group’s 16 regional sports networks operating as Bally Sports and Diamond’s digital offerings, including the direct-to-consumer product, as FanDuel Sports Network.
According to Preschlack, “Over the last 18 months, we have worked tirelessly to strengthen our business, including by reaching revised multi-year rights agreements with team and league partners, go-forward carriage agreements with major distribution partners, a broad naming rights partnership with FanDuel and a commercial agreement with Amazon.
“These critical achievements and a realigned business are enabling us to emerge as a sustainable, go-forward entity that drives value for our partners and fans.
On Oct. 21, the Bally Sports RSNs were officially renamed under the FanDuel Sports Network brand.Earlier this week, Diamond Sports Group signed a multi-year agreement with Amazon’s Prime Video, enabling direct-to-consumer local access to Diamond’s FanDuel Sports Network’s 16 regional sports networks serving fans in 31 states.
FanDuel Sports Network RSNs will be available via Prime Video as an add-on subscription for customers living within each team’s designated geographic area. More details to be announced at a later date.
Following its completion of the restructuring process, Preschlack, Eric Ratchman (president of distribution and business development) and David DeVoe Jr. (COO and CFO) will remain in their respective roles at Diamond Sports Group.
Over the past two years, Diamond Sports Group cut the number of MLB teams in its portfolio from 14 to six.
Last month, MLB said it would produce and distribute RSN local games in 2025 for the Cleveland Guardians, Milwaukee Brewers, and Minnesota Twins in similar fashion to how the league serviced the Arizona Diamondbacks, Colorado Rockies and San Diego Padres during the 2024 season.
This past week, MLB said it would produce and distribute local games for the Cincinnati Reds during the 2025 season.
Diamond has deals with 13 NBA teams and eight NHL teams at least through the 2024-25 seasons, including linear and digital rights.
Upon emergence, FanDuel Sports Network will be home to 13 NBA teams, eight NHL teams and six MLB teams, including:
• NBA: Atlanta Hawks, Charlotte Hornets, Cleveland Cavaliers, Detroit Pistons, Indiana Pacers, Los Angeles Clippers, Memphis Grizzlies, Miami Heat, Milwaukee Bucks, Minnesota Timberwolves, Oklahoma City Thunder, Orlando Magic and San Antonio Spurs.
• NHL: Carolina Hurricanes, Columbus Blue Jackets, Detroit Red Wings, Los Angeles Kings, Minnesota Wild, Nashville Predators, St. Louis Blues and Tampa Bay Lightning.
• MLB: Atlanta Braves, Los Angeles Angels, Miami Marlins, St. Louis Cardinals, Detroit Tigers and Tampa Bay Rays.
“Looking ahead, Diamond is well-positioned to further enhance its product offering and remains committed to delivering the highest quality live sports content in-market to fans through both linear and direct-to-consumer frameworks,” said Preschlack.
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