Diamond Sports Group, the largest regional sports network operator in the United States, has received approval to emerge from bankruptcy after filing for Chapter 11 protection 20 months ago. Judge Christopher Lopez approved the company’s reorganization plan, stating that it complies with all legal provisions.
In a recent statement, Diamond announced that it anticipates completing the restructuring process in the coming weeks, pending the fulfillment of customary conditions. The company, formerly known as Bally Sports, currently holds the linear cable and digital streaming rights for 27 MLB, NBA, and NHL teams. Diamond has secured new naming rights with FanDuel and a commercial agreement with Amazon to allow subscribers to watch RSNs locally through Prime Video.
Diamond CEO David Preschlack expressed his excitement for the company’s future, emphasizing that it is now free from legacy debt, financially stable, and supported by new ownership. The company has worked diligently over the past year and a half to strengthen its business, renegotiating multi-year rights agreements with team and league partners, securing carriage agreements with major distributors, and forming partnerships with key companies like FanDuel and Amazon.
Major League Baseball and the Atlanta Braves, who initially objected to Diamond’s reorganization plan, have since withdrawn their opposition after the company renegotiated deals with several MLB teams, granting direct-to-consumer streaming rights. The company also reached new agreements with NBA and NHL teams to lower rights fees, paving the way for its restructuring approval.
Diamond will significantly reduce its debt from nearly $9 billion to $200 million as part of the restructuring plan. The company currently has $100 million in liquidity and received overwhelming support from debt holders for the reorganization. Sinclair, Diamond’s parent company, will no longer have an equity interest in the stand-alone entity.
Sinclair acquired Diamond Sports Group as a subsidiary in 2019, purchasing 21 regional channels from Fox for $10.6 billion but accumulating $8 billion in debt. With changing media consumption patterns and mounting debt, Diamond faced financial challenges that led to its bankruptcy filing.
Overall, Diamond Sports Group’s approval to emerge from bankruptcy marks a significant milestone for the company, positioning it as a financially stable and sustainable entity in the competitive sports broadcasting industry.