Diamond Sports Group has received another extension from U.S. Bankruptcy Judge Christopher Lopez, giving creditors until May 22 to vote on the company’s reorganization plan. If approved, the final ruling on Diamond’s solvency will be on June 18. In the meantime, negotiations with distributors Comcast and DirecTV are ongoing, following a recent agreement with Charter. Since the majority of Diamond’s revenue comes from these distributors, reaching a reasonable deal with Comcast is crucial for the broadcaster to exit bankruptcy.
The focus of the negotiations seems to be on the NBA, MLB, and NHL broadcasts on Diamond’s Bally Sports networks, which are considered too valuable to fail. However, Comcast’s intention to place NBA and NHL games on its pricier tiered package could impact the outcome of the discussions. Sources indicate that Charter prefers a different approach, aiming to maintain current subscribers on non-tiered packaging while transitioning new subscribers to a tiered plan. On the other hand, Comcast is inclined to move all sports subscriptions into a tiered scenario, potentially decreasing revenue for Diamond.
Diamond’s financial situation has improved from facing liquidation to seeking a path out of over $8B in debt with the help of creditors and a potential investment from Amazon. This investment, which amounts to $115M and could lead to streaming Bally Sports broadcasts in the future, is contingent upon Diamond successfully emerging from bankruptcy. The NBA, which has 15 teams connected to Diamond, is eager to see the company become viable again, as it impacts their operations as well.
The uncertainty surrounding Diamond’s future has left NBA teams associated with the broadcaster in limbo, prompting them to explore alternative broadcast options for the upcoming seasons. As negotiations continue, the outcome will determine the fate of Diamond Sports Group and its ability to continue broadcasting major sports events.