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, the Arizona Coyotes of the National Hockey League, the Orlando Magic of the National Basketball Association, 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, 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 National Basketball Association and Phoenix Mercury of the Women's National Basketball Association 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. The deal still needs to be approved by the bankruptcy court.[53][20]
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.[54] 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]
| Team | Payment(s) missed | Status |
|---|---|---|
| ACC on Regional Sports Networks | March 2023, June 2023 | TV rights returned to Raycom Sports[42] (Sublicense acquired by The CW) |
| Arizona Coyotes | October 2023 | TV rights acquired by Scripps Sports[54] |
| Arizona Diamondbacks | March 2023, July 2023 | TV rights returned to MLB[55] |
| Cincinnati Reds | April 2023 | Paid through 2023[56] |
| Cleveland Guardians | April 2023 | Paid through 2023[57] |
| Los Angeles Kings | Contract expired | New contract, 6 games moved to KCAL-TV[58] |
| Minnesota Twins | April 2023, Contract expired | Paid through 2023[59] |
| Orlando Magic | October 2023 | Expected to be paid following approval of larger deal with the NBA[20] |
| Phoenix Suns | Contract expired | TV rights acquired by Gray Television[38] |
| San Diego Padres | March 2023, May 2023 | TV rights returned to MLB[60] |
| Texas Rangers | April 2023 | Paid through 2023[61] |
References[]
- ↑ Mirabella, Lorraine. "Sinclair stock soars over sports deal", The Baltimore Sun, May 7, 2019.
- ↑ 2.0 2.1 Littleton, Cynthia. "Sinclair Clinches Disney-Regional Sports Networks Deal, Byron Allen Joins as Partner", Variety, May 3, 2019.
- ↑ Hayes, Dade. "Disney, Sinclair Broadcast Group, Byron Allen Close Regional Sports Network Deal", Deadline, August 23, 2019.
- ↑ Sinclair Completes Acquisition of Regional Sports Networks From Disney (August 23, 2019).
- ↑ "Sinclair Writes Off $4.2 Billion On Regional Sports Channels Amid Strong Political Advertising", Forbes, 4 November 2020.
- ↑ Novy-Williams, Eben (2020-11-19). Bally's Buys Sinclair RSN Naming Rights As Part of Sports Betting Push (en-US).
- ↑ Balderston, Michael (2021-01-27). Sinclair, Bally Reveal Bally Sports Rebrand for RSNs (en).
- ↑ Farewell, Fox Sports West. Hello, Bally Sports (en-US) (2020-11-19).
- ↑ Bally Sports, Coming March 31. YouTube (Fox Sports Midwest) (March 18, 2021).
- ↑ Sinclair's Diamond Sports Group Inks NHL Renewal Deal, MLB Lockout Looms (en).
- ↑ "Diamond Sports Announces New Board of Managers", Business Wire, Sinclair Broadcast Group, 2 May 2022.
- ↑ Bucholtz, Andrew (2022-08-17). Bally Sports+ has an official all-markets launch date (en-US).
- ↑ "Diamond Sports Removes Sinclair as Operator of Regional Sports Networks", Sportico, Penske Media Corporation, 4 December 2022.
- ↑ "Steve Rosenberg out as president of Diamond Sports Group", Sports Business Journal, Leaders Group, 20 March 2023.
- ↑ (March 14, 2023). Diamond Sports Group Commences Voluntary Chapter 11 Proceedings to Strengthen Balance Sheet. Press release.
- ↑ "Diamond Sports Group not making $140M interest payment", Sports Business Journal, Leaders Group, February 15, 2023.
- ↑ "Diamond Sports, largest owner of regional sports networks, files for bankruptcy", CNBC, March 14, 2023.
- ↑ 18.0 18.1 "Diamond Sports Rejects College Basketball Deal In Ch. 11", Law360, October 10, 2023.
- ↑ 19.0 19.1 "NBA, NHL in limbo waiting on next move in Diamond Sports Group bankruptcy", Awful Announcing, October 5, 2023.
- ↑ 20.0 20.1 20.2 "SBJ Media: Inside the NBA-Diamond deal", Sports Business Journal, November 6, 2023.
- ↑ 21.0 21.1 "Bally Sports Southwest parent company fails to make April rights payment to Rangers", Dallas Morning News, April 19, 2023.
- ↑ "DIAMOND SPORTS FILES FOR BANKRUPTCY; DIAMONDBACKS OWED $30 MILLION", Sportico, March 14, 2023.
- ↑ "SBJ Media: Twins, Guardians see rights squeeze", Sports Business Journal, Leaders Group, April 3, 2023.
- ↑ 24.0 24.1 "SBJ Media: Cincy -- Ground Zero for MLB's RSN fight", Sports Business Journal, Leaders Group, April 17, 2023.
- ↑ "Sources: Diamond Sports misses rights payment to D-Backs", Sports Business Journal, Leaders Group, March 17, 2023.
- ↑ "Cincinnati Reds games to remain on Bally Sports Ohio", WVXU, Cincinnati Public Radio, May 2, 2023.
- ↑ "MLB files emergency motion in Diamond Sports bankruptcy for Twins, Guardians payments; D-Backs file own motion", The Athletic, New York Times, April 5, 2023.
- ↑ "Diamond RSN's Missed Payments Spur Late May MLB Court Fight", Sportico, Penske Media Corporation, April 18, 2023.
- ↑ "Diamond RSNs Must Pay 50% To 4 MLB Teams In Bankruptcy Case, For Now", Sportico, Penske Media Corporation, April 20, 2023.
- ↑ "Diamond Sports Group ordered to fully pay MLB teams' contracts", ESPN, Walt Disney Corporation, June 1, 2023.
- ↑ Diamond Pays the Cleveland Guardians to Keep Them on Bally Sports Through July (July 7, 2023).
- ↑ Frankel, Daniel (15 June 2023). Diamond Pays the Texas Rangers, Keeps Them On Bally Sports Southwest.
- ↑ Sprung, Shlomo (2023-04-28). RSN to DTC: Phoenix Suns, Mercury Bringing Games to Local TV for Free (en-US).
- ↑ Weprin, Alex (2023-04-28). The Phoenix Suns Could Usher In the Future of Regional Sports TV Deals (en-US).
- ↑ Rizzo, Lillian (28 April 2023). Phoenix Suns and Mercury to move games from cable to local network and streaming (en).
- ↑ Rankin, Duane. "Diamond Sports Group accuses Phoenix Suns of breach of contract in leaving Bally Sports Arizona", The Arizona Republic, April 28, 2023.
- ↑ Kaplan, Daniel. "Judge voids Suns' media deal with Gray TV amid Diamond Sports bankruptcy proceedings", The Arizona Republic, May 10, 2023.
- ↑ 38.0 38.1 Novak, Chris. "Phoenix Suns strike deal with Gray Television", Awful Announcing, July 14, 2023.
- ↑ "Diamond Sports Group Pulls Plug on Bally Sports San Diego Padres Games", Next TV, May 31, 2023.
- ↑ 40.0 40.1 "SBJ Unpacks: Padres' deal with Bally Sports ends tonight", Sports Business Journal, May 30, 2023.
- ↑ "Diamond Sports Group fails to pay Padres, loses broadcast rights", ESPN, May 30, 2023.
- ↑ 42.0 42.1 "Bally Sports Kicks Another Asset to the Curb: ACC Football and Basketball Games", Next TV, June 15, 2023.
- ↑ Petski, Denise (July 13, 2023). The CW Lands Rights To Atlantic Coast Conference College Football & Basketball Games Through 2026-27.
- ↑ "Bankrupt Diamond Moves To Cut the MLB's Diamondbacks Loose From Bally Sports Arizona", Next TV, June 22, 2023.
- ↑ D-backs, Diamond Sports push back hearing on TV contract, Bally Sports to continue coverage (June 28, 2023).
- ↑ "Diamondbacks games no longer to be carried on Bally Sports; MLB moving them to new outlets", AzCentral, July 18, 2023.
- ↑ "Sinclair Broadcast sued by its struggling Diamond Sports Group subsidiary", Baltimore Sun, July 21, 2023.
- ↑ "DIAMOND SPORTS BANKRUPTCY EXTENDED AS NHL, NBA SEASONS NEAR", Sportico, August 11, 2023.
- ↑ "Diamond Sports seeks to cut NBA, NHL fees in last-ditch bid to survive another year: sources", New York Post, 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, September 28, 2023.
- ↑ "Will America's Largest Local Sports Broadcaster Survive?", Wall Street Journal, September 30, 2023.
- ↑ "MLB pushes bankrupt broadcaster to ditch or commit to 2024 TV deals", Reuters, October 12, 2023.
- ↑ "Diamond Sports reaches deal with NBA", Sports Business Journal, November 6, 2023.
- ↑ 54.0 54.1 "HOW TO WATCH: Catch the latest Arizona Coyotes games on ABC15 Arizona", ABC15 Arizona, October 5, 2023.
- ↑ D-backs, Diamond Sports push back hearing on TV contract, Bally Sports to continue coverage (June 28, 2023).
- ↑ Gray, Doug (June 15, 2023). What's next for the Cincinnati Reds and Bally Sports Ohio?.
- ↑ Frankel, Daniel (July 7, 2023). Diamond Pays the Cleveland Guardians to Keep Them on Bally Sports Through July.
- ↑ (September 14, 2023). LA Kings Announce Television Schedule For 2023-24 Regular Season. Press release.
- ↑ Miller, Phil (July 1, 2023). Twins games will remain on Bally Sports for remainder of 2023 season.
- ↑ "Diamond Sports Group Pulls Plug on Bally Sports San Diego Padres Games", Next TV, May 31, 2023.
- ↑ Fisher, Eric (June 15, 2023). Bally Sports Owner Makes Rangers Payment, Other MLB Clubs Still Waiting.