Nearly a month after a Houston court agreed to postpone a key confirmation hearing in Diamond Sports Group’s bankruptcy case, the owner and operator of the nation’s largest group of regional sports networks has struck a deal to continue broadcasting games from its 20 NBA and NHL teams in its local market.
The Diamonds said in a set of documents filed Friday in U.S. Bankruptcy Court for the Southern District of Texas that they have agreed to honor traditional television contracts with most of their NBA and NHL partners.
For basketball, DSG will move forward with the Atlanta Hawks, Charlotte Hornets, Cleveland Cavaliers, Detroit Pistons, Los Angeles Clippers, Memphis Grizzlies, Miami Heat, Milwaukee Bucks, Minnesota Timberwolves, Oklahoma City Thunder and San Antonio Spurs “through at least the conclusion of the 2024-2025 NBA season.”
The deal requires approval from U.S. Bankruptcy Judge Christopher Lopez, who has repeatedly urged the parties to reach an agreement between themselves rather than waiting for an order to be issued in favor of one side. Judge Lopez’s recommendation is consistent with federal bankruptcy proceedings designed to encourage settlement and mediation, with the idea that interested parties are in the best position to resolve their disputes.
As part of his future plans with the NBA, Diamond will file motions to veto the contracts of the Dallas Mavericks and the New Orleans Pelicans. The latter separation was heralded earlier this month when the Pelicans announced they had signed a multi-year deal with Gray television affiliate WVUE-TV (Fox 8/Bounce TV) to air 70 games per year in their local market. Dallas has long been considering a separation from Bally Sports Southwest, as Mark Cuban himself has stated on multiple occasions.
For pay-TV subscribers, the Mavs’ RSNs are probably one of the more affordable local sports broadcasters, with an average monthly subscription fee of about $3.35. By comparison, Bally Sports Detroit is the most expensive at about $6.88 per subscriber per month, and Diamond’s Ohio-based RSN is the most expensive at $7.42.
The end of the Mavs affiliation will significantly ease Bally Sports Southwest’s burden, as the NHL’s Dallas Stars officially left the network on July 8. Baseball’s Texas Rangers own a 10% stake in the network.
Under the terms of the deal, Diamond’s NBA partners agreed to cut their current rights fees by 30 to 40 percent.
In addition to his long-awaited NBA contract, Diamond also received deals with the Anaheim Ducks, Carolina Hurricanes, Columbus Blue Jackets, Detroit Red Wings, Minnesota Wild, Nashville Predators and Tampa Bay Lightning. As with his NBA clubs, his NHL contract runs through the end of next season. That said, the cuts agreed to by the seven NHL teams are significantly lower than the NBA’s tithe, and the reduction in rights fees is said to be closer to 20 percent.
Along with its seven NHL partners on Diamond’s wholly-owned RSNs, the company has agreed to continue broadcasting Blues and Kings games in the St. Louis and Los Angeles markets. The St. Louis Cardinals own 30% of Bally Sports Midwest and the Los Angeles Angels hold a 25% stake in Bally Sports West.
“We appreciate our ongoing collaboration and longstanding partnership with the NBA and NHL,” Diamond Sports CEO David Pleschlak said in a statement released shortly after the legal filing. “Having completed negotiations with key partners that will provide certainty around content and distribution, Diamond is well positioned for the future. With the support of our creditors, we are focused on finalizing our reorganization plan and filing that plan with the Court in a timely manner.”
With the NBA and NHL deals in place and Diamond’s renewed distribution deal with Comcast, the company has cleared the way for what is expected to be a successful confirmation hearing. Judge Christopher Lopez agreed last month to postpone the crucial July 29 trial date after Diamond’s lawyers asked for a little more time to finalize the aforementioned deal. Coincidentally, DSG managed to settle its distribution dispute with the cable giant, which ended the second quarter of 2024 with 13.2 million video customers — on the very day it was scheduled to file its lawsuit with the court.
In today’s filing, Diamond asked that emergency relief be granted by Sept. 3. A rescheduled date for the confirmation hearing, which has been postponed twice, will be set at the company’s next court appearance.