About a month to the day after a Houston jury agreed to postpone a key confirmation hearing in the bankruptcy case of Diamond Sports Group, the largest owner of the local sports network has completed televised contracts for 22 NBA and NHL games. groups in their home markets.
In a series of filings with the US Bankruptcy Court for the Southern District of Texas, Diamond on Friday revealed that it has agreed to honor its TV legacy agreements with many of its NBA and NHL partners.
On the hoops side of the ledger, DSG will continue with 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 “at least until the end of the 2024-2025 NBA season.”
These agreements require the approval of US Bank Judge Christopher Lopez, who has been encouraging the parties to reach arrangements themselves rather than waiting for him to issue orders representing one side or the other. Lopez’s proposals are consistent with the federal bankruptcy process, which is designed to encourage settlement and negotiation that stakeholders are in a better position to resolve their disputes.
As part of its plan to move forward with the NBA, Diamond will offer to reject the contracts of the Dallas Mavericks and New Orleans Pelicans. The final split was foreshadowed earlier this month when the Pelicans announced a multi-year deal with Gray Television affiliate WVUE-TV (Fox 8/Bounce TV) to broadcast 70 games a year in the market. their countryman. As Mark Cuban himself has said more than once, Dallas has been thinking about parting ways with Bally Sports Southwest.
For pay TV subscribers, the Mavs’ RSN is one of the cheapest local outlets, with an average monthly fee of about $3.35. By comparison, Bally Sports Detroit charges about $6.88 a month, while Ohio-based RSN Diamond is the most expensive to dial in at $7.42.
Severing ties with the Mavs will make things much easier for Bally Sports Southwest, as the NHL’s Dallas Stars officially left the RSN on July 8. Baseball’s Texas Rangers hold a 10% stake in the network.
Under the agreement, Diamond’s NBA partners have agreed to a 30%-40% reduction in their existing royalties.
In addition to the long-awaited deal with the NBA, Diamond has also secured another deal with the Anaheim Ducks, Carolina Hurricanes, Columbus Blue Jackets, Detroit Red Wings, Minnesota Wild, Nashville Predators and Tampa Bay Lightning. Like NBA teams, the NHL’s contract runs through the end of next season. That said, the haircuts of seven NHL teams have agreed to a much lower cut than the NBA’s tenth, as the reduction in royalties is said to be closer to 20%.
Along with Diamond’s seven wholly-owned NHL affiliate RSNs, the company has agreed to continue carrying Blues and Kings games in the St. Louis markets. Louis and Los Angeles. St. St. Louis Cardinals own 30% of Bally Sports Midwest, while the Los Angeles Angels hold a 25% stake in Bally Sports West.
“We value the continued partnership and long-term partnership with the NBA and NHL,” said Diamond Sports CEO David Preschlack, in a statement issued shortly after the official filings. “Having completed negotiations with key partners who provide the certainty of our content and our distribution, Diamond is well positioned for the future. With the support of our creditors, we are focused on completing our strategic plan to support our emergence and present the plan to the court in due course.”
With the NBA and NHL deals in place, and thanks to Diamond’s renewal of its auto deal with Comcast, the company has paved the way for what is expected to be a successful confirmation hearing. Judge Christopher Lopez last month agreed to postpone the important court date of July 29 after Diamond’s lawyers asked for more time to hold the aforementioned arrangements. As it turns out, DSG managed to settle its car dispute with the giant – Comcast closed the second quarter of 2024 with 13.2 million customers – on the same day it was supposed to file a lawsuit it in court.
As part of today’s reports, Diamond requested that emergency assistance be provided on Sept. 3 or earlier. A rain date for the double-seal hearing is expected to be set during the next court appearance.
(This story has been corrected in the first and third paragraphs to show that there were 22 teams involved, including the Indiana Pacers and Orlando Magic.)
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