Diamond Sports Group (DSG), the US regional sports broadcast operator slowly emerging from financial trouble, has announced a multi-year renewal of its distribution agreement with US telecom company Charter Communication, a carrier of DSG's portfolio of regional sports networks (RSNs).
Under the new deal, customers will continue to have access to live local MLB (baseball), NBA (basketball), and NHL (ice-hockey) matches and pre and post-game content on DSG's RSN channels through Charter’s Spectrum TV Select Plus package.
Additionally, Spectrum TV Select Plus customers will be able to stream Diamond’s RSN content by authenticating with their subscription credentials on the Bally Sports app.
Customers who do not have access to Diamond’s RSN channels as part of their service will be able to purchase Diamond’s direct-to-consumer (DTC) product, including from Spectrum, to access all local DTC content.
David Preschlack, chief executive of DSG, stated: “Extending our distribution relationship with Charter is a key milestone and an important part of our go-forward plan, as we remain focused on restructuring the company and moving forward as a sustainable, profitable business.
“We expect this agreement to generate value for DSG, Charter, and our team and league partners, and enable us to continue providing high-quality broadcasts for passionate local fans. We believe this agreement can serve as a model in the ongoing time-sensitive negotiations with our other distribution partners to reach carriage agreements that work for all parties.”
DSG was forced to file for bankruptcy in March 2023, however, a February rights agreement with Major League Baseball (MLB) teams the Texas Rangers, Cleveland Guardians, and Minnesota Twins, and a major deal with a group of creditors, may help the operator to come out of its year-long bankruptcy proceedings.
DSG has said the deal with the various creditors will provide it with around $450 million, some of which will help to pay off various debts, with the rest to finance a reorganization plan.
Amazon is reportedly putting in $115 million of that total, and could potentially invest another $50 million, the Athletic has suggested. Amazon was first reported as being interested in investing in DSG in December.
The RSN provider has said it expects to see its direct-to-consumer revenue grow from $49 million in 2023 to $658 million in 2026.
Last season, owing to the bankruptcy proceedings, MLB had to step in and take over the distribution and production of games played by the San Diego Padres and the Arizona Diamondbacks, after DSG failed to reach new agreements with those franchises.
Under the Bally Sports brand, DSG owns 18 RSNs, which - combined - hold the local rights to 37 professional US teams (11 MLB, 15 NBA, and 11 NHL). The Bally brand will continue through 2024 but will then be replaced with a new name in 2025, according to reports.
