Embattled US regional sports network (RSN) operator Diamond Sports Group (DSG) has struck a vital newly modified broadcast deal for the 2024-25 National Basketball Association (NBA) and National Hockey League (NHL) seasons.
The deal is comprised of local broadcast rights for 22 franchises in all (13 NBA and nine NHL) that are present in regions covered by the DSG-owned Bally Sports brand of RSNs.
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It does not, however, include the NBA’s Dallas Mavericks and New Orleans Pelicans NBA franchises, which will not continue under the new one-year deal.
A judge must also ratify the pending NBA and NHL deals. The 2024-25 NHL season will begin on October 8 while the NBA will tip off on October 22.
DSG’s ability to secure these deals whilst still undergoing bankruptcy proceedings has likely been catalyzed by the fact it recently secured a carriage deal with major broadband provider Comcast, ending a three-month blackout.
All this has served to buy DSG time in its bankruptcy proceedings, the final hearing for which will now take place on September 3.
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By GlobalDataDavid Preschlak, DSG chief executive, stated: “These new agreements that cover NBA and NHL linear and [direct-to-consumer] rights are another major milestone and continue Diamond's momentum toward emergence [from bankruptcy], which will enable us to provide value for our NBA and NHL partners and continue to serve dedicated local NBA, NHL and MLB fans."
IF DSG does not emerge from bankruptcy proceedings this agreement will remain a single-year deal, with the participants free to secure local carriage elsewhere for 2025-26, however, if the reorganization plan it is set to present on September 3 is deemed good enough by the court judge then the future of DSG may be secured, at least in the short term.
Preschlak continued: “Having completed negotiations with key partners that provide certainty around our content and distribution, Diamond is well positioned for the future. With the support of our creditors, we are focused on finalizing our reorganization plan to support our emergence and presenting that plan to the court in due course."
This comes despite reports that e-commerce behemoth Amazon pulled a $115 million investment offer to DSG in exchange for local streaming rights, likely due to the fact that DSG has been dropped by the Mavericks and Pelicans, as well as the fact that the RSN operator has also secured investment from elsewhere.
