A recent development in the Diamond Sports Group bankruptcy proceedings has sparked some concern from the NBA and NHL towards the broadcaster. These leagues, which collectively comprise 26 teams whose games are aired on Bally Sports-branded regional sports networks (RSNs), have been observing Diamond, the parent company of these channels, operate under Chapter 11 protection for over a year in its efforts to resolve its long-term viability. In late March, Diamond filed for an extension to extend the deadline for soliciting approval of its reorganization plan from its creditors, which include the leagues, until November. While the NBA and NHL did not immediately respond publicly, recent reports suggest that both leagues have expressed reservations regarding the extension request.
The NBA, in a court filing, expressed “deep concern” over the prospect that Diamond might not emerge from bankruptcy until the 2024-25 basketball season. Similarly, the NHL voiced uncertainty about Diamond’s ability to secure necessary agreements to resume operations successfully. Diamond’s next challenge lies in negotiating a new carriage deal with DIRECTV.
Although the statements submitted to the court by the NBA and NHL do not outright reject the extension request, they indicate a need for further clarity. The NBA’s legal representatives emphasized concerns about potential disruptions and delays bleeding into the next season due to the broadcaster’s uncertainties. While supportive of Diamond’s efforts to reemerge as a viable entity, the NBA seeks additional information, particularly regarding Diamond’s carriage deal with Charter Communications. The NHL also requires more details from Diamond before endorsing the extension request, highlighting the predicament faced by the 11 hockey teams whose rights are held by the company.
Essentially, there is no guarantee that these NHL teams will continue to be featured on Bally Sports RSNs next season, prompting the league to seek assurances. Notably, Major League Baseball (MLB), historically at odds with Diamond, expressed skepticism about the broadcaster’s ability to avoid liquidation or further financial restructuring post-confirmation of the plan.