The future of Diamond Sports, the owner of the Bally Sports brand and the largest portfolio of regional sports networks, is causing concern for the National Basketball Association (NBA) and National Hockey League (NHL). The leagues are worried that Diamond Sports may not be able to put together a viable business plan before the upcoming seasons this fall. Diamond Sports has been under bankruptcy protection since March of last year and has delayed its hearing to confirm its reorganization plan until late July.
During a status conference in bankruptcy court, lawyers for the NBA and NHL expressed their concerns. NBA attorney Vincent Indelicato emphasized the importance of timing, stating that a lot needs to be done well ahead of the 2024-2025 season to properly produce and distribute games. The NHL attorney echoed these fears, suggesting that if Diamond Sports fails to create a viable business plan in the coming months, the leagues may struggle to find options for producing and airing games in local markets. Some Major League Baseball teams have already moved forward without their Bally Sports network, while NBA and NHL teams have made deals with local broadcast station groups to carry local games.
To move forward, Diamond Sports must develop a reorganization plan that outlines its future outside of bankruptcy protection and obtain court approval. The NBA has urged Diamond Sports to have a clear business plan by July. However, recent negotiations between Diamond Sports and Comcast Corp. have caused setbacks. Last month, Comcast customers lost access to Bally Sports networks, affecting fans of 11 MLB teams. While this blackout has not yet impacted NBA and NHL fans, as they are in the postseason, it highlights the challenges faced by regional sports networks.
Diamond Sports is still in negotiations with various stakeholders but has reached an impasse with Comcast, leading the company to explore alternatives. Pay-TV distributors like Comcast have been losing customers as streaming alternatives gain popularity, and regional sports networks have been heavily affected. Additionally, Diamond Sports carries a substantial debt load of over $8 billion from Sinclair’s acquisition of the networks in 2019.
The uncertainty surrounding Diamond Sports’ future and its ability to create a viable business plan raises concerns for the NBA and NHL. The leagues rely on regional sports networks to produce and distribute games in local markets. Without a clear plan, they may have to find alternative options, potentially causing disruptions for fans. The ongoing negotiations and the breakdown with Comcast further complicate the situation. As the sports media landscape continues to evolve, it remains to be seen how Diamond Sports will navigate these challenges and secure a sustainable future.
