Diamond Sports Group, the leading owner of regional sports networks, has received approval to proceed out of bankruptcy following the confirmation of its reorganization plan on Thursday.
Judge Christopher Lopez authorized the plan during a 90-minute session at the U.S. Bankruptcy Court in Houston.
“This case was no layup, not for anyone. A lot of hard work went into this,” remarked Judge Lopez during the proceedings.
Since it filed for Chapter 11 bankruptcy protection in March 2023, Diamond Sports has been involved in bankruptcy proceedings in the Southern District of Texas.
In a financial disclosure from last year, the company indicated that it was burdened with debts totaling $8.67 billion.
Upon emerging from bankruptcy, Diamond will have much lower debt, although it will also operate with a reduced portfolio of teams and networks.
When Diamond entered bankruptcy, it managed 19 networks under the Bally Sports brand and held broadcast rights for 42 professional teams, which included 14 in Major League Baseball, 16 in the NBA, and 12 in the NHL.
The newly reorganized entity will now operate under the FanDuel Sports Network name following a naming rights agreement established last month.
Currently, it features 16 networks and covers games for 27 franchises: six MLB, 13 NBA, and eight NHL teams.
These 16 networks serve fans across 31 states.
As part of its reorganization strategy last month, Diamond voided agreements with the Detroit Tigers and Tampa Bay Rays while negotiating new terms for the five franchises that had partial ownership stakes in their regional sports networks.
Modifications have been achieved with the Tigers and Rays, along with new deals with the St. Louis Cardinals, Los Angeles Angels, and Miami Marlins that also include streaming rights.
Negotiations are still ongoing with the Kansas City Royals.
The partnership between Diamond and the Cincinnati Reds has been dissolved, although a representative for Diamond mentioned during the recent hearing that they are open to future discussions.
The Reds held a 20% interest in their regional sports network, which Diamond has since repurchased for the nominal fee of $1.
The Atlanta Braves were the only team whose contract remained unchanged; however, they have consented to an amended agreement that also provides for streaming rights.
Streaming is viewed as a crucial strategy for Diamond as it looks to attract new viewers.
Recently, the company announced a multiyear partnership with Prime Video that will make its channels available as an additional subscription option.
Earlier this year, Prime Video also revealed that it was acquiring a minority stake in Diamond Sports.
Furthermore, beginning December 5, Diamond will introduce single-game pricing on its direct-to-consumer app for NBA and NHL games, allowing viewers the choice to purchase single games for $6.99, in addition to the options for monthly or season pass subscriptions.
Diamond Sports Group, along with Sinclair Broadcast Group, acquired the regional sports networks from The Walt Disney Company for nearly $10 billion in 2019.
This sale was necessitated by a stipulation from the Department of Justice, which required Disney to divest these networks for its acquisition of 21st Century Fox’s film and television assets to proceed.