Bankruptcy Exit Approved for Diamond Sports' Restructuring Plan
Diamond Sports Group Emerges from Bankruptcy with Major Streaming Deal and Naming Rights Agreements
After a tumultuous period, Diamond Sports Group (DSG) is set to emerge from Chapter 11 protection in the coming weeks, marking a significant milestone in the company's history. The reorganization plan, approved by the U.S. bankruptcy court, will reduce DSG's debt from nearly $9 billion to a manageable $200 million.
DSG, which holds rights to 27 Major League Baseball (MLB), National Hockey League (NHL), and National Basketball Association (NBA) teams, has secured a commercial agreement with Amazon's Prime Video and a naming rights agreement with FanDuel. The streaming deal is expected to bring DSG's sports content to a wider audience, while the naming rights agreement will see FanDuel's brand prominently displayed across DSG's properties.
The restructuring has resulted in a significant shift in ownership. Sinclair Broadcast Group and Entertainment Studios have become the new major creditors by taking equity stakes in the company. Upon emergence, lead creditors will exchange certain funded debt claims for equity in the reorganized company. This move is expected to provide DSG with more than $100 million in cash and cash equivalents on its balance sheet.
The NBA teams under DSG's umbrella include 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. The NHL teams include the Carolina Hurricanes, Columbus Blue Jackets, Detroit Red Wings, Los Angeles Kings, Minnesota Wild, Nashville Predators, St. Louis Blues, and Tampa Bay Lightning. The MLB teams include the Atlanta Braves, Los Angeles Angels, Miami Marlins, St. Louis Cardinals, Detroit Tigers, and Tampa Bay Rays.
DSG has reached revised multiyear rights agreements with team and league partners, ensuring the continuity of its sports broadcasting operations. The company has also completed its operational separation from Sinclair.
The leadership team at DSG will remain largely unchanged post-restructuring. David Preschlack, CEO; Eric Ratchman, president of distribution and business development; and David DeVoe Jr., chief operating officer and chief financial officer will continue in their respective roles. The DSG Board will also see new members after emergence from bankruptcy.
Additional information regarding DSG's Chapter 11 proceeding is available online. This development marks the end of a long-running saga that highlighted the impact of cord-cutting on Regional Sports Networks (RSNs). The bankruptcy court ruling brings closure to this saga, paving the way for DSG to move forward with its new strategic partnerships and restructured operations.
