Regardless of whether it emerges from bankruptcy safely, Diamond Sports Group, which broadcasts Bally-branded regional sports networks, has committed to operating through the 2024-25 NBA and NHL seasons.
Diamond Sports announced Friday that it had reached agreement with both leagues and would release its contracts with the Dallas Mavericks and New Orleans Pelicans as part of a basketball deal. It was already known that the Pelicans had signed broadcast deals elsewhere for the 2024-25 season.
The deal requires approval by a federal bankruptcy court, with a hearing scheduled for Sept. 3. The terms of the two leagues’ contracts have also been revised, likely reducing rights payments, though Friday’s court filing did not disclose the exact amount. NBA filings said the Mavs and Pelicans’ departures were by mutual agreement with Diamond.
The NBA, NHL, Mavericks and Pelicans did not immediately respond to requests for comment.
The Diamond will carry 13 NBA teams and nine NHL teams for the 2024-25 season. The NBA and NHL have agreed to terms that will apply beyond the 2024-25 season if the Diamond emerges from bankruptcy. But questions remain about the Diamond’s long-term viability and when that might be resolved.
For Diamond to emerge from bankruptcy, it needs to hold a confirmation hearing where a judge will approve the plan. The hearing was scheduled for late July but was postponed after Diamond said it needed to make significant changes to the plan. A new date has not yet been announced. (Diamond proposed new arrangements with some of its biggest creditors on Friday, setting Oct. 1 and Nov. 15 as key deadlines for the process.)
Diamond and Comcast were embroiled in a dispute that lasted nearly three months this summer that led to Comcast’s Xfinity subscribers being unable to get Diamond’s channel in their homes during the height of the major league season. Diamond also broadcasts MLB’s 12 teams.
Diamond and Comcast struck a deal to bring the games back in early August, but the deal added Diamond’s channel to a new tier for Comcast subscribers, meaning customers will have to pay a premium fee each month to watch it.
It remains to be seen how the economics of the new Comcast deal will affect Diamond, but there could be ripple effects. Diamond has included a most-favored-nation clause in its contracts with various distributors, including Comcast, promising that Diamond will adjust its contracts if a particular distributor offers better terms to others. However, the contract language has not been made public, so it is unclear what Diamond’s deal with Comcast means for Diamond’s bigger picture.
Bally Sports reporter Christina Pink interviews James Harden on Dec. 6, 2023. (Kirby Lee/USA Today)
Diamond CEO David Pleschlak characterized Friday’s news as positive.
“We appreciate our continued collaboration and long-term partnership with the NBA and NHL,” Pleszlak said in a statement. “These new agreements, covering linear and (direct-to-consumer) rights for the NBA and NHL, are another major milestone and continue our momentum on Diamond’s rise, allowing us to continue to deliver value to our NBA and NHL partners and serve our passionate local NBA, NHL and MLB fans.”
“Having completed negotiations with key partners that will provide certainty around content and distribution, Diamond is well positioned for the future. With the support of our creditors, we are focused on finalizing a restructuring plan to support our recovery and filing that plan with the Court in a timely manner.”
In some ways, the Diamonds’ new contracts with hockey and basketball bring attention back to MLB, which isn’t sure whether the Diamonds will operate through the 2025 season. MLB declined to comment Friday.
Baseball doesn’t have a comprehensive deal with the Diamonds like the NBA and NHL. MLB and the Diamonds have discussed such an arrangement recently, a person briefed on the talks said, but it’s unclear if any progress has been made. The relationship between the Diamonds and MLB has been the most contentious through the bankruptcy proceedings, which began in early 2023. Part of the issue is how the two sides value MLB’s streaming rights.
Of the 12 teams the Diamondbacks televise, only five are also available on the company’s streaming package, Bally Sports+. The more streaming options there are, the easier it is for fans to watch the games, but MLB and the Diamondbacks don’t see eye-to-eye on the value of streaming rights.
With the Mavericks and Pelicans out, Diamond’s 13 NBA teams to choose from are the Atlanta Hawks, Charlotte Hornets, Cleveland Cavaliers, Detroit Pistons, Indiana Pacers, Los Angeles Clippers, Memphis Grizzlies, Miami Heat, Milwaukee Bucks, Minnesota Timberwolves, Oklahoma City Thunder, Orlando Magic and San Antonio Spurs.
Nine NHL teams: Anaheim Ducks, Carolina Hurricanes, Columbus Blue Jackets, Detroit Red Wings, Los Angeles Kings, Minnesota Wild, Nashville Predators, St. Louis Blues and Tampa Bay Lightning.
The Pelicans have reportedly signed a deal to be broadcast on WVUE-TV next season.
(Top photo from the American Airlines Center in Dallas: Jerome Miron/USA Today)