Diamond Sports Group, the majority owner of regional sports networks, could emerge from bankruptcy if its reorganization plan is approved Thursday.
Judge Christopher Lopez recused himself from the 90-minute hearing in U.S. Bankruptcy Court in Houston.
“This incident was not a layup and it did not concern anyone. It took a lot of hard work to make this happen,” Lopez said during the hearing.
Diamond Sports has been pursuing Chapter 11 bankruptcy proceedings in the Southern District of Texas since filing for protection in March 2023. The company said in financial filings last year that it had $8.67 billion in debt.
Diamond will emerge from bankruptcy with significantly less debt and a smaller team and network.
When Diamond went bankrupt, it owned 19 networks under the name Bally Sports and had the rights to 42 professional teams (14 in baseball, 16 in the NBA and 12 in the NHL).
The revamped company now operates under the name FanDuel Sports Network after agreeing to a naming rights deal last month. It has 16 networks and offers games from 27 franchises (6 baseball, 13 NBA, and 8 NHL).
The 16 networks cover fans in 31 states.
Last month, as part of a reorganization plan, Diamond voided the contracts of the Detroit Tigers and Tampa Bay Rays as he attempted to rework the deals of five franchises with partial ownership of regional sports networks.
Not only did Diamond amend his contracts with the Tigers and Rays, but he also signed a deal with the St. Louis Blues. It has also signed deals that include streaming rights with the St. Louis Cardinals, Los Angeles Angels and Miami Marlins. Talks with the Kansas City Royals are continuing.
The Cincinnati Reds and Diamonds have terminated their joint venture, but Diamond’s attorney said he intends to resume discussions at a hearing Thursday.
Cincinnati held a 20% stake in the RSN affiliate. Diamond bought back his stake in the Reds for $1.
Atlanta was the only franchise whose contract remained unchanged, but the Braves agreed to a revised deal that included streaming rights.
Steaming is an important means for Diamond to find new audiences. The company announced Wednesday that it has signed a multi-year deal with Prime Video to offer its channels as an add-on subscription.
Prime Video announced earlier this year that it would purchase a minority stake in Diamond Sports.
Diamond will also offer single-game pricing on its direct-to-consumer app for NBA and NHL games starting December 5.
Viewers can enjoy a single game for $6.99, as well as sign up for a monthly or season pass subscription.
Diamond Sports Group and Sinclair Broadcast Group acquired regional sports networks from Walt Disney Co. in 2019 for nearly $10 billion. Disney has been required by the Justice Department to sell the network in order to acquire 21st Century Fox’s film and TV assets. Approved.
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