Diamond Sports Group LLC
TypePrivate
IndustrySports
FoundedMay 3, 2019 (2019-05-03)
FateBankruptcy
Area served
United States
Key people
David Preschlack (CEO)
David DeVoe (CFO and COO)
Randy Freer (board member)
Mary Ann Turcke (board member)
Bob Whitsitt (board member)
Chris Ripley (board member)
ServicesBally Sports networks
OwnerSinclair Broadcast Group, Allen Media Group

Diamond Sports Group LLC is an American media and entertainment company operating as a subsidiary of Sinclair Broadcast Group, and partnered with Allen Media Group. The company operates Bally Sports, a group of regional sports channels that was formerly known as the Fox Sports Networks.

History

Sinclair Broadcast Group formed the company with Byron Allen's Allen Media Group to acquire 22 regional Fox Sports Networks affiliates and Fox College Sports from The Walt Disney Company, which was required to divest of these networks to secure government antitrust approval.[1] The transaction, initially valued at $10.6 billion, is managed through a joint venture called Diamond Holdings Group,[2] and formally closed the transfer in August 2019 for $9.6 billion.[3]

The company's regional sports networks have exclusive broadcasting rights to 42 professional teams (including 16 National Basketball Association teams, 14 Major League Baseball teams, and 12 National Hockey League teams),[4] and the channels collectively generated $3.8 billion in 2018, across nearly 75 million subscribers.[2]

Sinclair took a $4.23 billion write-down of its regional sports assets in 2020 after a downturn in the business.[5]

On November 18, 2020, Sinclair announced that it had entered into an agreement with casino operator Bally's Corporation to acquire the naming rights under a 10-year deal.[6]

On January 27, 2021, Sinclair announced that the networks would be rebranded as Bally Sports on March 31.[7][8][9] In December 2021, the company reached an extension agreement with the National Hockey League.[10]

On May 2, 2022, Diamond Sports Group assembled a board of five directors, made up of Bob Whitsitt, Sinclair CEO Chris Ripley, Randy Freer, a former Fox Sports/Hulu executive, Mary Ann Turcke, a former COO of the NFL, and David Preschlack (previously President of the NBC Sports Regional Networks); Preschlack would be elected CEO of Diamond on December 5.[11]

On June 23, 2022, Bally Sports soft-launched a direct-to-consumer service known as Bally Sports Plus (or Bally Sports+) in selected markets. It is expected to launch nationally in the remainder of the networks' footprint on September 26.[12]

On December 4, 2022, Diamond Sports Group's board had voted to block the Sinclair Broadcast Group from operating Diamond and its regional sports networks.[13]

An email from Diamond CEO David Preschlack announced on March 20, 2023 that Steve Rosenberg would no longer be the president of Diamond Sports Group; Rosenberg's last day as president of Diamond was March 19. With his departure, Diamond's chief financial officer David DeVoe will take on the role of COO.[14]

Bankruptcy

On March 14, 2023, Diamond Sports filed for Chapter 11 bankruptcy,[15] 30 days after they failed to make a $140M interest payment.[16] Diamond’s first-lien lenders will not be affected as part of the restructuring support agreement, however other creditors will convert their debt into equity. Diamond also plans to separate from Sinclair and become an entirely new entity.[17]

During its bankruptcy, Diamond has missed payments to the Arizona Diamondbacks, Texas Rangers, Cleveland Guardians and Minnesota Twins of Major League Baseball (MLB), the Arizona Coyotes of the National Hockey League (NHL), the Orlando Magic of the National Basketball Association (NBA), and to Raycom Sports for its ACC on Regional Sports Networks package and the Orange Bowl for its Orange Bowl Classic men's college basketball tournament.[18][19][20][21][22][23][24] Diamond also entered grace periods for their payments to the San Diego Padres and Cincinnati Reds of MLB, which they eventually made.[25][26]

On April 5, 2023, Major League Baseball filed an emergency motion asking the bankruptcy judge to order Diamond to pay the teams they missed payments to or give the media rights back to the MLB. Diamond argued that because of cord-cutting the contract rate for the media rights of the teams was too high.[27][24][21][28] As an interim, on April 19, the bankruptcy judge ordered Diamond Sports to pay 50% of what the Diamondbacks, Guardians, Twins and Rangers are owed.[29] On June 1, 2023, after a two day long hearing, the bankruptcy judge ordered Diamond to pay the teams fully within five days.[30] Diamond would go on to pay the Rangers and Twins for the remainder of the season and the Guardians through July.[31][32]

On April 28, 2023, the Phoenix Suns of the NBA and Phoenix Mercury of the Women's National Basketball Association (WNBA) announced they had signed a five-year agreement with Gray Television to replace Bally Sports Arizona as its local television partners.[33] After the announcement, Diamond Sports Group accused the team of breaching its contract and bankruptcy law, stating that the team was making an "improper effort" to "change their broadcasting partner without permitting Diamond to exercise our contractual rights." In response, Suns CEO Josh Bartlestein stated that "Diamond's position is totally inaccurate. We are moving forward with this deal and could not be more excited about what it means for our fans and our future."[34][35][36] On May 10, 2023, the bankruptcy judge voided the Suns contract with Gray, ruling that the Suns violated Bally Sports Arizona's contractual right of first refusal. He ordered the parties into arbitration. The Phoenix Mercury's deal was not affected.[37] On July 14, 2023, the deal became official when Diamond declined to match Gray's contract offer.[38]

On May 31, 2023, Diamond officially missed a second payment to the Padres, and the Padres' television rights were returned to Major League Baseball. Because Bally Sports San Diego, which aired Padres games, is a joint venture between the Padres and Diamond it is technically not in bankruptcy. Therefore this missed payment did not have the same bankruptcy protections that Diamond's other missed payments had.[39][40] Padres games will be available blackout free on MLB.tv, as well as through channels on select cable providers, including YurView California, in the San Diego area. MLB Network will produce the games with the Padres' regular commentators.[41][40]

On June 14, 2023, Diamond rejected its contract with Raycom Sports to distribute a package of Atlantic Coast Conference games, freeing Raycom to sell the package to other networks.[42] A month later, Raycom announced that The CW had bought the rights.[43]

On June 22, 2023, Diamond announced its intention to reject its contract with the Arizona Diamondbacks on June 30, 2023.[44] Diamond and the Arizona Diamondbacks later released a joint statement pushing back the hearing and agreeing to continue Diamond's broadcast of Diamondbacks' games.[45] The contract was officially rejected on July 18. Like for the Padres, Major League Baseball took over production.[46]

On July 21, 2023, Diamond sued the Sinclair Broadcast Group, their parent, over transactions made when Sinclair had control over the company. Diamond alleged that Sinclair made transactions that were designed to benefit itself while hurting its subsidiary.[47] On August 11, 2023, the bankruptcy judged granted an 80 day extension to Diamond Sports to file their reorganization plan. The plan is due on September 30.[48]

On September 28, 2023, the New York Post and Next TV reported that Diamond Sports had reached one-year carriage agreements with DirecTV and Comcast prior to their restructuring deadline. They also reported that Diamond Sports had offered the NHL and NBA a 20% reduction in their media rights to continue carrying games through 2024.[49][50] On September 29, Diamond Sports requested a 60 day extension to file their reorganization plan.[51] On October 11, 2023, Major League Baseball filed a notice opposing Diamond Sports' request for an extension. The MLB also asked the bankruptcy court to force Diamond to make a decision on whether the company would air games from the Atlanta Braves, Cleveland Guardians, Detroit Tigers, Milwaukee Brewers and Texas Rangers in 2024.[52]

On October 1, 2023, Diamond Sports missed a payment to the Orlando Magic of the National Basketball Association. But, on November 6, 2023, Diamond Sports and the National Basketball Association reached a one-year agreement that will result in the contracts for NBA teams airing on Diamond expiring after the 2023–24 NBA season, but will result in the Orlando Magic being paid. Across the board, all NBA teams airing on Diamond Sports will receive a 16% reduction in the money they receive from Diamond Sports, but will be able to sell 10 games to local over-the-air networks.[53][20] On December 30, 2023, the Atlanta Hawks and New Orleans Pelicans reached agreements with Gray Television to air 10 over-the-air games in local markets. The games will continue to be produced by Bally Sports.[54][55]

On October 4, 2023, Diamond announced that it intended to reject its contract with the Arizona Coyotes.[19] The next day, Scripps Sports announced it had acquired the rights and that games would air on KASW.[56] On October 10, 2023, Diamond announced that it intended to reject its contract with the Orange Bowl for its Orange Bowl Classic men's college basketball tournament.[18]

On December 20, 2023, Diamond Sports and the National Hockey League reached a similar agreement with the NBA's November 6 deal that will also result in the contracts for all NHL teams airing on Diamond expiring after the 2023–24 NHL season, pending approval by the bankruptcy court.[57]

TV rights status for teams with a missed payment or expiring contract
TeamPayment(s) missedStatus
ACC on Regional Sports NetworksMarch 2023, June 2023TV rights returned to Raycom Sports[42] (Sublicense acquired by The CW)
Arizona CoyotesOctober 2023TV rights acquired by Scripps Sports[56]
Arizona DiamondbacksMarch 2023, July 2023TV rights returned to MLB[58]
Cincinnati RedsApril 2023Paid through 2023[59]
Cleveland GuardiansApril 2023Paid through 2023[60]
Los Angeles KingsContract expiredNew contract, 6 games moved to KCAL-TV[61]
Minnesota TwinsApril 2023, Contract expiredPaid through 2023[62]
Orlando MagicOctober 2023Expected to be paid following approval of larger deal with the NBA[20]
Phoenix SunsContract expiredTV rights acquired by Gray Television[38]
San Diego PadresMarch 2023, May 2023TV rights returned to MLB[63]
Texas RangersApril 2023Paid through 2023[64]

References

  1. ↑ Mirabella, Lorraine (May 7, 2019). "Sinclair stock soars over sports deal". The Baltimore Sun. Retrieved September 22, 2020.
  2. 1 2 Littleton, Cynthia (May 3, 2019). "Sinclair Clinches Disney-Regional Sports Networks Deal, Byron Allen Joins as Partner". Variety. Retrieved September 22, 2020.
  3. ↑ Hayes, Dade (August 23, 2019). "Disney, Sinclair Broadcast Group, Byron Allen Close Regional Sports Network Deal". Deadline. Retrieved September 22, 2020.
  4. ↑ "Sinclair Completes Acquisition of Regional Sports Networks From Disney". The Walt Disney Company. August 23, 2019. Retrieved September 23, 2020.
  5. ↑ Bloom, David (4 November 2020). "Sinclair Writes Off $4.2 Billion On Regional Sports Channels Amid Strong Political Advertising". Forbes. Retrieved 7 September 2022.
  6. ↑ Novy-Williams, Eben (2020-11-19). "Bally's Buys Sinclair RSN Naming Rights As Part of Sports Betting Push". Sportico.com. Retrieved 2020-11-19.
  7. ↑ Balderston, Michael (2021-01-27). "Sinclair, Bally Reveal Bally Sports Rebrand for RSNs". TVTechnology. Archived from the original on 2021-01-27. Retrieved 2021-01-28.
  8. ↑ "Farewell, Fox Sports West. Hello, Bally Sports". Los Angeles Times. 2020-11-19. Archived from the original on 2020-11-19. Retrieved 2021-01-28.
  9. ↑ "Bally Sports, Coming March 31". YouTube (Fox Sports Midwest). March 18, 2021. Retrieved March 18, 2021.
  10. ↑ "Sinclair's Diamond Sports Group Inks NHL Renewal Deal, MLB Lockout Looms". www.mediapost.com. Retrieved 2021-12-04.
  11. ↑ "Diamond Sports Announces New Board of Managers". Business Wire. Sinclair Broadcast Group. 2 May 2022. Retrieved 5 January 2023.
  12. ↑ Bucholtz, Andrew (2022-08-17). "Bally Sports+ has an official all-markets launch date". Awful Announcing. Retrieved 2022-08-17.
  13. ↑ Crupi, Anthony (4 December 2022). "Diamond Sports Removes Sinclair as Operator of Regional Sports Networks". Sportico. Penske Media Corporation. Retrieved 5 January 2023.
  14. ↑ Ourand, John (20 March 2023). "Steve Rosenberg out as president of Diamond Sports Group". Sports Business Journal. Leaders Group. Retrieved 20 March 2023.
  15. ↑ "Diamond Sports Group Commences Voluntary Chapter 11 Proceedings to Strengthen Balance Sheet". Business Wire (Press release). March 14, 2023. Retrieved March 14, 2023.
  16. ↑ Ourand, John (February 15, 2023). "Diamond Sports Group not making $140M interest payment". Sports Business Journal. Leaders Group. Retrieved February 15, 2023.
  17. ↑ Rizzo, Lillian (March 14, 2023). "Diamond Sports, largest owner of regional sports networks, files for bankruptcy". CNBC. Retrieved May 2, 2023.
  18. 1 2 Sullivan, Vince (October 10, 2023). "Diamond Sports Rejects College Basketball Deal In Ch. 11". Law360. Retrieved November 8, 2023.
  19. 1 2 Kaplan, Daniel (October 5, 2023). "NBA, NHL in limbo waiting on next move in Diamond Sports Group bankruptcy". Awful Announcing. Retrieved October 5, 2023.
  20. 1 2 3 Ourand, John (November 6, 2023). "SBJ Media: Inside the NBA-Diamond deal". Sports Business Journal. Retrieved November 6, 2023.
  21. 1 2 Grant, Evan (April 19, 2023). "Bally Sports Southwest parent company fails to make April rights payment to Rangers". Dallas Morning News. Retrieved April 19, 2023.
  22. ↑ Coffey, Brendan (March 14, 2023). "DIAMOND SPORTS FILES FOR BANKRUPTCY; DIAMONDBACKS OWED $30 MILLION". Sportico. Retrieved May 2, 2023.
  23. ↑ Ourand, John (April 3, 2023). "SBJ Media: Twins, Guardians see rights squeeze". Sports Business Journal. Leaders Group. Retrieved April 3, 2023.
  24. 1 2 Ourand, John (April 17, 2023). "SBJ Media: Cincy -- Ground Zero for MLB's RSN fight". Sports Business Journal. Leaders Group. Retrieved April 18, 2023.
  25. ↑ Ourand, John (March 17, 2023). "Sources: Diamond Sports misses rights payment to D-Backs". Sports Business Journal. Leaders Group. Retrieved March 17, 2023.
  26. ↑ Kiesewetter, John (May 2, 2023). "Cincinnati Reds games to remain on Bally Sports Ohio". WVXU. Cincinnati Public Radio. Retrieved May 2, 2023.
  27. ↑ Kaplan, Daniel (April 5, 2023). "MLB files emergency motion in Diamond Sports bankruptcy for Twins, Guardians payments; D-Backs file own motion". The Athletic. New York Times. Retrieved April 18, 2023.
  28. ↑ McCann, Michael; Crupi, Anthony (April 18, 2023). "Diamond RSN's Missed Payments Spur Late May MLB Court Fight". Sportico. Penske Media Corporation. Retrieved April 19, 2023.
  29. ↑ McCann, Michael; Crupi, Anthony (April 20, 2023). "Diamond RSNs Must Pay 50% To 4 MLB Teams In Bankruptcy Case, For Now". Sportico. Penske Media Corporation. Retrieved April 20, 2023.
  30. ↑ Gonzalez, Aiden (June 1, 2023). "Diamond Sports Group ordered to fully pay MLB teams' contracts". ESPN. Walt Disney Corporation. Retrieved June 3, 2023.
  31. ↑ "Diamond Pays the Cleveland Guardians to Keep Them on Bally Sports Through July". July 7, 2023. Retrieved July 8, 2023.
  32. ↑ Frankel, Daniel (15 June 2023). "Diamond Pays the Texas Rangers, Keeps Them On Bally Sports Southwest". Retrieved July 8, 2023.
  33. ↑ Sprung, Shlomo (2023-04-28). "RSN to DTC: Phoenix Suns, Mercury Bringing Games to Local TV for Free". Boardroom. Retrieved 2023-04-30.
  34. ↑ Weprin, Alex (2023-04-28). "The Phoenix Suns Could Usher In the Future of Regional Sports TV Deals". The Hollywood Reporter. Retrieved 2023-04-28.
  35. ↑ Rizzo, Lillian (28 April 2023). "Phoenix Suns and Mercury to move games from cable to local network and streaming". CNBC. Retrieved 2023-04-28.
  36. ↑ Rankin, Duane (April 28, 2023). "Diamond Sports Group accuses Phoenix Suns of breach of contract in leaving Bally Sports Arizona". The Arizona Republic. Retrieved April 28, 2023.
  37. ↑ Kaplan, Daniel (May 10, 2023). "Judge voids Suns' media deal with Gray TV amid Diamond Sports bankruptcy proceedings". The Arizona Republic. Retrieved May 30, 2023.
  38. 1 2 Novak, Chris (July 14, 2023). "Phoenix Suns strike deal with Gray Television". Awful Announcing. Retrieved July 14, 2023.
  39. ↑ Lafayette, Jon (May 31, 2023). "Diamond Sports Group Pulls Plug on Bally Sports San Diego Padres Games". Next TV. Retrieved June 3, 2023.
  40. 1 2 Ourand, John (May 30, 2023). "SBJ Unpacks: Padres' deal with Bally Sports ends tonight". Sports Business Journal. Retrieved May 30, 2023.
  41. ↑ Gonzalez, Alden (May 30, 2023). "Diamond Sports Group fails to pay Padres, loses broadcast rights". ESPN. Retrieved May 30, 2023.
  42. 1 2 Frankel, Daniel (June 15, 2023). "Bally Sports Kicks Another Asset to the Curb: ACC Football and Basketball Games". Next TV. Retrieved June 20, 2023.
  43. ↑ Petski, Denise (July 13, 2023). "The CW Lands Rights To Atlantic Coast Conference College Football & Basketball Games Through 2026-27". Retrieved July 13, 2023.
  44. ↑ Frankel, Daniel (June 22, 2023). "Bankrupt Diamond Moves To Cut the MLB's Diamondbacks Loose From Bally Sports Arizona". Next TV. Retrieved June 22, 2023.
  45. ↑ "D-backs, Diamond Sports push back hearing on TV contract, Bally Sports to continue coverage". June 28, 2023. Retrieved July 8, 2023.
  46. ↑ Mackie, Theo (July 18, 2023). "Diamondbacks games no longer to be carried on Bally Sports; MLB moving them to new outlets". AzCentral. Retrieved July 18, 2023.
  47. ↑ Mirabella, Lorraine (July 21, 2023). "Sinclair Broadcast sued by its struggling Diamond Sports Group subsidiary". Baltimore Sun. Retrieved July 21, 2023.
  48. ↑ Crupl, Anthony; McCann, Michael (August 11, 2023). "DIAMOND SPORTS BANKRUPTCY EXTENDED AS NHL, NBA SEASONS NEAR". Sportico. Retrieved September 28, 2023.
  49. ↑ Kosman, Josh (September 28, 2023). "Diamond Sports seeks to cut NBA, NHL fees in last-ditch bid to survive another year: sources". New York Post. Retrieved September 28, 2023.
  50. ↑ Frankel, Daniel (September 28, 2023). "Bankrupt Diamond Reaches Short-Term Renewals With Comcast and DirecTV for Bally Sports, Demands 20% Fee Cuts From the NBA and NHL to Keep Going For Another Year: Report". Next TV. Retrieved September 28, 2023.
  51. ↑ Toonkel, Jessica; Gladstone, Andrew; Flint, Joe (September 30, 2023). "Will America's Largest Local Sports Broadcaster Survive?". Wall Street Journal. Retrieved September 30, 2023.
  52. ↑ Knauth, Dietrich (October 12, 2023). "MLB pushes bankrupt broadcaster to ditch or commit to 2024 TV deals". Reuters. Retrieved October 12, 2023.
  53. ↑ Ourand, John (November 6, 2023). "Diamond Sports reaches deal with NBA". Sports Business Journal. Retrieved November 6, 2023.
  54. ↑ "Atlanta Hawks Partner with Gray's Peachtree TV to Broadcast 10 Games Free, Over the Air". NBA.com (Press release). December 30, 2023.
  55. ↑ "WAFB will televise 10 of this season's Pelicans games" (Press release). WAFB. December 30, 2023. Retrieved December 30, 2023.
  56. 1 2 Jeffrey, Courtland (October 5, 2023). "HOW TO WATCH: Catch the latest Arizona Coyotes games on ABC15 Arizona". ABC15 Arizona. Retrieved October 5, 2023.
  57. ↑ "NHL agrees to keep 11 teams' local broadcasts on Bally Sports". Associated Press. ESPN. December 20, 2023. Retrieved December 20, 2023.
  58. ↑ "D-backs, Diamond Sports push back hearing on TV contract, Bally Sports to continue coverage". June 28, 2023. Retrieved July 8, 2023.
  59. ↑ Gray, Doug (June 15, 2023). "What's next for the Cincinnati Reds and Bally Sports Ohio?". Retrieved July 8, 2023.
  60. ↑ Frankel, Daniel (July 7, 2023). "Diamond Pays the Cleveland Guardians to Keep Them on Bally Sports Through July". Retrieved July 8, 2023.
  61. ↑ "LA Kings Announce Television Schedule For 2023-24 Regular Season". NHL.com (Press release). September 14, 2023.
  62. ↑ Miller, Phil (July 1, 2023). "Twins games will remain on Bally Sports for remainder of 2023 season". Star Tribune. Retrieved July 8, 2023.
  63. ↑ Lafayette, Jon (May 31, 2023). "Diamond Sports Group Pulls Plug on Bally Sports San Diego Padres Games". Next TV. Retrieved June 3, 2023.
  64. ↑ Fisher, Eric (June 15, 2023). "Bally Sports Owner Makes Rangers Payment, Other MLB Clubs Still Waiting". Retrieved July 8, 2023.
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