Bally Sports Regional Networks took a big step toward emerging from its long-running Chapter 11 case with new NHL and NBA agreements to televise team games through at least the end of the upcoming ‘24-’25 season. The news was contained in court filings asking the bankruptcy court to approve the deals.
The agreement covers nine NHL teams and 13 NBA clubs. It does not include MLB, whose current season is already under contract .
The developments come roughly a month after Diamond Sports, the parent of Bally Sports, again delayed a hearing to confirm its Chapter 11 exit plan, which had been scheduled for July 29-30. The NBA and NHL had been especially vocal about the need to keep to that deadline to ensure clarity for its Bally Sports teams moving forward. But in delaying the hearing, Diamond cited progress on distributor talks–it would announce a renewal with Comcast days later–and with the leagues.
“The NBA Term Sheet is an illustration of the significant progress made by the Debtors as a result of tireless and continuing efforts to negotiate and secure go-forward relationships with the key commercial parties in these cases, including the Debtors’ professional sports league and team partners, so that the Debtors can emerge from chapter 11 as a going-concern business,” Diamond’s NBA filing said. “The Debtors are optimistic that the results of these negotiations will provide the basis for a confirmable going-concern plan of reorganization, and the Debtors believe that the NBA Term Sheet represents a significant step towards achieving that goal.”
The agreements, the filings said, change the terms of the contracts with the 22 teams, though those deals are sealed. But presumably it involves a reduction in rights fees given the deterioration of the regional sports network market, in return for the assurance of Bally Sports televising the games, as well as getting streaming rights.
If Diamond does not have a Chapter 11 exit plan by the end of the next NBA and NHL seasons, then the contracts are terminated. In the event Bally Sports defaults on payments before then, the teams become high priority creditors, and receive liens on Diamond assets. However, if Diamond does get a plan approved, the NBA and NHL agreements automatically continue past the upcoming season.
Several teams, including ones cut by Bally Sports like the Phoenix Suns and Dallas Mavericks, are deploying a streaming and local TV approach. This will inevitably lead to higher viewership, but substantially less revenue without the fees from Bally Sports. That is one of the reasons the Bally teams are willing to take a lower fee than is in their contract.
Meanwhile the big question looming over the Chapter 11 is MLB’s next move being the big unknown. MLB has opposed Diamond at almost every step since before and after the company filed Chapter 11 in March 2023. Its focus has been on if the renewal of cable distributors deals make economic sense and can support the Chapter 11 exit plan. The league has threatened to oppose the plan if it believes it will not support Bally Sports’ survival.
The nine NHL clubs are the Carolina Hurricanes, the Tampa Bay Lightning, the Minnesota Wild, the Columbus Blue Jackets, the Nashville Predators, the Anaheim Ducks, the Detroit Red Wings, the St. Louis Blues and the Los Angeles Kings (the Kings and Blues are each separately part of joint ventures with Diamond).
The 13 NBA teams are the Detroit Pistons, the Milwaukee Bucks, the Cleveland Cavaliers, the Miami Heat, the Memphis Grizzlies, the Minnesota Timberwolves, the Los Angeles Clippers, the Atlanta Hawks, the Charlotte Hornets, the Oklahoma Thunder, the San Antonio Spurs, the Indiana Pacers and Orlando Magic.
Diamond also filed a motion to terminate the contracts with the Dallas Mavericks and New Orleans Pelicans. The Pelicans have already announced they will be airing games locally on a Gray Television affiliate beginning this season. Mavericks minority owner Mark Cuban has hinted that the Mavs may be moving away from Bally , but any official shift in their distribution strategy is yet to be announced.
The NHL in a statement said, “We’re pleased with this collaboration that allowed the parties to reach an agreement for these RSNs to continue to operate and bring games to our fans.”
The NBA said, “We have reached a new agreement with Diamond Sports Group for the 2024-25 season in which Diamond RSNs will telecast local games for 13 NBA teams. The Dallas Mavericks and New Orleans Pelicans declined to continue distributing their games on Diamond RSNs and will share more details soon on how to watch games for the upcoming season in their respective markets. This new agreement is subject to approval by the bankruptcy court.”
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