Diamond Sports Group Signs Deals with NBA and NHL

Nearly a month after a Houston court agreed to postpone a crucial hearing in the bankruptcy case of Diamond Sports Group, the owner-operator of the nation’s largest group of regional sports networks has reached agreements to continue airing games from 22 NBA and NHL teams in their local markets.

Diamond announced Friday that in a series of documents filed with the U.S. Bankruptcy Court for the Southern District of Texas, it has agreed to honor existing television agreements with the majority of its NBA and NHL affiliates.

On the basketball 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 “through at least the end of the 2024-25 NBA season.”

The deals require approval from U.S. Bankruptcy Judge Christopher Lopez, who has repeatedly urged the parties to reach agreements on their own rather than wait for him to issue orders favoring one side or the other. Lopez’s recommendations are consistent with the federal bankruptcy process, which is designed to encourage settlement and mediation based on the idea that interested parties are best able to resolve their disputes.

As part of his plan to move on from the NBA, Diamond will file motions to dismiss the contracts of the Dallas Mavericks and New Orleans Pelicans. The latter parting of ways was announced earlier this month when the Pelicans announced they had signed a multi-year deal with Gray Television affiliate WVUE-TV (Fox 8/Bounce TV) to broadcast 70 games per year in their home market. As Mark Cuban himself has said on more than one occasion, Dallas has long considered a split from Bally Sports Southwest.

For pay TV subscribers, the Mavs’ RSN is likely to be one of the more reasonably priced local sports channels, with an average monthly subscription price of around $3.35. For comparison, Bally Sports Detroit brings in around $6.88 per subscriber per month, while Ohio’s Diamond’s RSN is the most expensive on the dial at $7.42.

Cutting ties with the Mavs will lighten the load for Bally Sports Southwest, as the NHL’s Dallas Stars officially parted ways with the RSN on July 8. The baseball team’s Texas Rangers own a 10% stake in the network.

Under the terms of the agreement, Diamond’s NBA partners have agreed to a 30%-40% reduction in their existing rights fees.

In addition to the long-awaited deal with the NBA, Diamond has also secured new rounds with the Anaheim Ducks, Carolina Hurricanes, Columbus Blue Jackets, Detroit Red Wings, Minnesota Wild, Nashville Predators and Tampa Bay Lightning. Like the NBA clubs, the NHL deal runs through the end of next season. That said, the haircut the seven NHL teams have agreed to is significantly lower than the NBA’s 10th, as the rights fee cut is reportedly closer to 20%.

Along with the seven NHL affiliates that are affiliated with Diamond-owned RSNs, the company has agreed to continue airing Blues and Kings games in the St. Louis and Los Angeles markets. The St. Louis Cardinals own 30% of Bally Sports Midwest, while the Los Angeles Angels own a 25% stake in Bally Sports West.

“We are grateful for the continued collaboration and long-term partnerships with the NBA and NHL,” Diamond Sports CEO David Preschlack said in a statement issued shortly after the legal documents were filed. “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 rise and submitting that plan to the court in due course.”

With the NBA and NHL deals now in place, and in light of Diamond’s extension of its carriage agreement with Comcast, the company has cleared the way for what is expected to be a successful confirmation hearing. Judge Christopher Lopez agreed last month to postpone the crucial July 29 hearing after Diamond’s attorneys asked for additional wiggle room to finalize the aforementioned arrangements. Coincidentally, DSG managed to settle its carriage dispute with the cable giant — Comcast ended the second quarter of 2024 with 13.2 million video customers — on the very day it was set to present its case to the court.

Diamond filed a motion today seeking emergency relief on or before September 3. A new date for the twice-postponed hearing is expected to be set at the company’s next court hearing.

The story continues

(This story has been corrected in the first and third paragraphs to reflect that 22 teams are affected, with the Indiana Pacers and Orlando Magic added to the group.)

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