Bankrupt regional sports network operator Diamond Sports Group has reached terms with Comcast on a carriage deal restoring 15 RSNs to Xfinity pay-TV systems.
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The networks went dark in April, frustrating millions of fans and adding to the woes of Diamond, which runs the string of Bally Sports nets once controlled by 21st Century Fox. After Disney bought most of Fox in 2019, the company was forced to sell off the RSNs and a group of investors led by Sinclair acquired them, only to inherit a host of headaches. Covid and the rapid shift to streaming have squeezed the long-lucrative RSN model, which has come under intense pressure due to cord-cutting and shifting consumer habit.
For Diamond, which filed for Chapter 11 bankruptcy protection in 2023, the agreement offers hope that it can emerge on the other side and continue to operate. It previously set carriage deals with major operators like Charter and DirecTV, but Comcast, the No. 2 pay-TV provider in the U.S., had remained a significant blank space in its distribution map.
The carriage deal will restore the networks to Xfinity Ultimate TV subscribers on Thursday, August 1. The Bally networks, also available via an authenticated Bally app, offer live coverage of Major League Baseball, NBA and NHL games.
“Entering a new carriage agreement with Comcast, our third-largest distributor, is a critical step forward in our restructuring effort,” Diamond CEO David Preschlack said in a press release. “With certainty on our distribution, we are focused on finalizing an agreement with the NHL and resolving our ongoing negotiations with the NBA. We are mindful that time is of the essence with basketball and hockey seasons fast approaching, and once agreements with our team and league partners are complete, we intend to move expeditiously to present a plan of reorganization to the court.”
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Greg Rigdon, president of content acquisition for Comcast, expressed appreciation for Diamond being willing to work on a resolution “that reflects the changing video marketplace for local sports.”
Financial terms of the carriage deal were not disclosed.
The stumbles of RSNs of late come as the overall value of sports rights continues to climb in the U.S. The NBA last week announced media rights deals worth $77 billion starting next year with Disney, Prime Video and NBCUniversal, triple the value of its current deals with Disney and Turner.
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