Diamond Sports Group, known for its regional broadcasts under the name Bally Sports, has been navigating through bankruptcy court for the past 14 months. The company recently decided to push back its confirmation hearing from June 18 to July 29 and 30. This delay is crucial as it will determine whether Diamond will successfully emerge from Chapter 11 reorganization. The push also allows the company more time to negotiate deals with major sports leagues such as the NBA and the NHL, as well as to provide more accurate financial projections. However, this delay brings the hearing dangerously close to the start of the upcoming NBA and NHL seasons, causing concern for the leagues’ attorneys.
Diamond has successfully secured deals with three of its top four distributors, including Charter, DirecTV, and Cox. However, the company has been unable to reach a new agreement with Comcast, its third-largest distributor. This lack of a deal has had severe consequences, with Comcast pulling Bally Sports’ local MLB broadcasts off the air in early May. As a result, fans across the country have been left without access to watch their favorite teams in action. To make matters worse, these games are also blacked out locally on MLB.tv, further limiting viewership due to exclusivity provisions.
Diamond Sports Group holds the rights for 12 baseball teams, including the Cleveland Guardians, Minnesota Twins, and Texas Rangers, but these contracts only extend through the 2024 season. Similarly, the company previously had rights agreements for 16 NBA teams and 12 NHL teams, all of which expired at the end of the 2023-24 seasons. This loss of key broadcasting rights has added to the uncertainty surrounding Diamond’s future. The situation was further complicated by a comment from an MLB lawyer, who described the lack of a deal with Comcast as “devastating” during the bankruptcy court proceedings on May 15.
In addition to the setbacks with distributors and expiring rights agreements, Diamond Sports Group also faces challenges with its restructuring plan. The company recently moved voting and objection deadlines for the plan back from June 5 to July 18. This shift indicates that Diamond is facing complexities and opposition in its efforts to reorganize and move forward successfully. The decision to delay key deadlines reflects the overall uncertainty and instability surrounding Diamond’s bankruptcy proceedings.
Diamond Sports Group’s journey through bankruptcy court has been riddled with obstacles and setbacks. The company’s decision to postpone its confirmation hearing, challenges with distributors, expiring rights agreements, and complications with the restructuring plan all paint a bleak picture of its future. As the sports broadcasting industry continues to evolve, Diamond’s ability to navigate these challenges and emerge successfully from bankruptcy remains uncertain.