A judge approved a reorg plan 20 months after the company filed for bankruptcy protection
It’s been a busy few days for the much maligned Diamond Sports Group, which appears to have finally emerged from bankruptcy after months of trials and tribulations. After announcing on Wednesday a multi-year agreement that will allow Prime Video users to stream Diamond’s 16 FanDuel regional sports networks, a bankruptcy judge signed off on the company’s reorganization plan today.
Diamond Exits the Rough: RSN Group Will Emerge With Rights to 27 Pro Teams
Twenty months after filing for Chapter 11 bankruptcy protection, Judge Christopher Lopez, presiding in the Southern District of Texas, approved the company’s reorganization plan in court today.
Diamond has been under bankruptcy protection since March 2023 and has made a series of major moves – including nixing or renegotiating the terms of rights deals with several teams – in an effort to prove it can be a viable company in the future. In addition to yesterday’s announcement with Prime Video, Diamond recently signed a naming rights deal with Flutter’s FanDuel for its 16 RSNs and unveiled plans to offer single-game pricing for its DTC streaming menu starting Dec. 5.
In addition, Diamond agreed to a new multiyear rights renewal with the St. Louis Cardinals last week after agreeing to revised deals (that all include DTC streaming rights) with the Los Angeles Angels, Miami Marlins, St. Louis Cardinals, Detroit Tigers and Tampa Bay Rays in recent months. Yesterday Major League Baseball and the Atlanta Braves withdrew their objection to Diamond’s reorg plan thanks to a revised deal with the Braves that also includes streaming rights. Meanwhile, the Kansas City Royals appear to be moving on from Diamond, though no official announcement has been made.
Diamond will emerge from bankruptcy with both linear cable and streaming rights to 27 pro sports teams: 13 NBA teams, eight NHL teams, and six MLB teams through at least the 2024-25 seasons.
Additional information regarding Diamond’s Chapter 11 cases, including court filings and information about the claims process are available at https://cases.ra.kroll.com/DSG.
All 16 FanDuel RSNs Arrive on Prime Video
The multi-year agreement with Prime Video, enables direct-to-consumer (DTC), local access to Diamond’s FanDuel Sports Network’s 16 RSNs serving fans in 31 states. Under the terms of the agreement, FanDuel Sports Network RSNs will be available via Prime Video as an add on subscription for customers living within each team’s designated geographic area. Financial terms were not announced, but more details about the service will be revealed at a later date.
Customers will be able to subscribe to and watch their local FanDuel Sports Network content, including live games and pre- and post-game programming directly through Prime Video. Amazon will market the availability of FanDuel Sports Network content on Prime Video.
Fans who watch local games through Prime Video will enjoy a seamless and customized viewing experience, as Prime Video allows them to subscribe, manage, and watch their favorite streaming services and sports content in one place.
David Preschlack, CEO of Diamond, says: “Partnering with Prime Video, one of the largest streaming destinations in the U.S., and making FanDuel Sports Network available as part of their add on subscriptions, creates a tremendous opportunity for us to expand our reach and better connect with viewers. Our partnerships with Prime Video and FanDuel combine with our agreements with team, league and distribution partners to support a transformative reorganization of our business, and a leading linear and digital offering that will continue driving long-term value and enhanced experiences for our partners and fans.”
NBA teams now available on Prime Video will be the Magic, Pistons, Pacers, Hawks, Heat, Hornets, T’Wolves, Spurs, Cavaliers, Bucks, Grizzlies, Clippers and Thunder, while NHL teams will be the Hurricanes, Blue Jackets, Red Wings, Kings, Wild, Predators, Blues and Lightning.
Amazon had previously agreed to a deal to infuse Diamond with $115M in exchange for exclusive digital rights to all of the company’s teams pending exit from bankruptcy. While the new deal is no longer exclusive, Prime Video will end up carrying Diamond Sports Group’s games after all.
