Diamond Sports Group, which runs the Bally Sports regional sports networks, said that the agreement the NBA’s Phoenix Suns announced today to have games broadcast on TV stations owned by Gray Television breaches its contract with the team and violates bankruptcy law.
A subsidiary of Sinclair Broadcast Group, Diamond filed for bankruptcy protection in March. Regional sports networks are under pressure because cord cutting is eroding subscriber revenue and reducing the number of eyeballs watching games via pay TV.
In bankruptcy court, Major League Baseball has been arguing that its teams should get their TV rights back from Diamond unless the RSN company pays the rights fees previously agreed to. The Bally RSNs have continued to televise baseball games while its case works its way through bankruptcy court.
The NBA’s regular season is over, but the WNBA is playing and the Suns’ deal with Gray, under which games will air on stations KTVK and KPHE, includes the co-owned WNBA Phoenix Mercury.
“The Phoenix Suns breached our contract and violated bankruptcy law, and Diamond Sports Group will pursue all remedies against any parties that attempt to exercise control over our property interests while we reorganize,” Diamond Sports said in a statement. “This is an improper effort by the Suns to change their broadcasting partner without permitting Diamond to exercise our contractual rights.”
Suns and Phoenix Mercury CEO Josh Bartelstein responded to Diamond's assertion in a statement that said “Diamond’s position is totally inaccurate. We are moving forward with this deal and could not be more excited about what it means for our fans and our future.”
Gray Television had no comment on Diamond’s claims.
