Phoenix, Arizona – Diamond Sports, a bankrupt broadcaster that holds broadcast rights for 37 sports teams across MLB, the NBA, and the NHL, has presented a $450 million reorganization plan to its creditors. This plan, contingent on the approval of a federal bankruptcy judge, would allow Diamond Sports to continue operating beyond 2024, potentially avoiding liquidation. One of the most significant aspects of this plan is the participation of Amazon and its streaming service, Prime.
If approved, many of Diamond Sports’ long-term broadcast contracts with various teams and leagues would remain in place, although some may be subject to changes. However, questions remain regarding the fate of three baseball teams in particular: the Cleveland Guardians, Texas Rangers, and Minnesota Twins. Answers are expected by February 1st, according to Andrew Goldman, a lawyer for Diamond Sports.
Under the proposed agreement, Amazon would invest $115 million of the $450 million, with the potential for an additional $50 million investment. This partnership would enable Amazon to broadcast Diamond teams on its Prime streaming service. Currently, Diamond holds linear TV rights for 37 teams, with streaming rights for all except six MLB teams. The involvement of Amazon’s Prime service would allow customers to access all local content, including live games and pre- and post-game programming.
Furthermore, this deal would necessitate a rebranding of Diamond’s stations. The regional sports networks that carry Diamond teams are currently branded under the name Bally. However, for 2025 and beyond, a new partner would be sought.
During a court hearing to update the parties involved, Judge Christopher Lopez expressed tentative encouragement about the reorganization plan. Although technical difficulties initially disrupted the proceedings, the parties involved are expected to respond and engage in further discussions.
For Major League Baseball (MLB), this arrangement represents a shift from its previous plans. MLB had been pursuing a deal with Diamond to broadcast 12 teams in 2024, with the remaining teams regaining their rights after that. However, the Amazon-backed plan could potentially alter this course and impact MLB’s future negotiations.
Similarly, the NBA and NHL had previously entered agreements with Diamond that allowed for an exit strategy from their partnership. Under these deals, the NBA and NHL expected their broadcast and digital rights to revert back to the leagues and teams after the 2023-24 season. However, this new restructuring plan could potentially undo these arrangements.
While the details of the reorganization plan are still being reviewed, the NBA and NHL have expressed the need for further dialogue with Diamond. These developments come as the NBA prepares to negotiate its next national media rights agreements, potentially limiting its options moving forward.
Overall, Diamond Sports’ proposed reorganization plan, with the participation of Amazon, presents an alternative to potential liquidation and has significant implications for the future of sports broadcasting. The fate of the plan now lies in the hands of a federal bankruptcy judge, who will ultimately decide whether Diamond Sports can continue operating beyond 2024.