Diamond Sports Group Emerges from Bankruptcy with Less Debt and New Strategy

Diamond Sports Group, owners of regional sports networks, has gotten the green light to emerge from bankruptcy. This happened at a recent hearing in US Bankruptcy Court in Houston. The company entered Chapter 11 in March 2023 with a massive debt of $8. 67 billion. Now, they are leaving with much less debt, around $200 million, but also with fewer teams and networks. Before bankruptcy, Diamond Sports owned 19 networks under Bally Sports and had rights to 42 professional teams. Now, they have 16 networks and rights to 27 teams. The company is now known as FanDuel Sports Network after a naming rights deal. Diamond’s CEO, David Preschlack, said this is a new start for the company. They are free from old debt and have new owners supporting them. Preschlack believes Diamond can improve their product offerings and provide high-quality live sports content to fans. The company has reworked deals with teams like the Detroit Tigers and Tampa Bay Rays. They also have new agreements with the St. Louis Cardinals, Los Angeles Angels, and Miami Marlins that include streaming rights. Talks with the Kansas City Royals are ongoing. Streaming is a key focus for Diamond. They recently made a deal with Prime Video to offer their channels as an add-on subscription. Starting December 5, fans can pay $6. 99 for single NBA or NHL games or opt for monthly or season passes. Diamond and Sinclair Broadcast Group bought these networks from The Walt Disney Company for nearly $10 billion in 2019. Disney had to sell them due to a requirement from the Department of Justice for their acquisition of 21st Century Fox's assets.