Fresh from a hope-redeeming carriage renewal with Comcast, bankrupt regional sports network operator Diamond Sports Group faces a pivotal restructuring hearing, during which a court will determine if it will ever re-emerge from Chapter 11.
If the Sinclair Broadcast Group subsidiary does avoid liquidation, it will likely be without a third of its NBA team partners.
Also Read: Everything You Need To Know About the Bally Sports Bankruptcy
According to the Sports Business Journal, the Dallas Mavericks, New Orleans Pelicans, Memphis Grizzlies, Oklahoma City Thunder and Detroit Pistons are likely to leave their respective Bally Sports channels and make their own local TV arrangements.
The SBJ said that Diamond is likely to honor the contracts of the Atlanta Hawks, Charlotte Hornets, Cleveland Cavaliers, Indiana Pacers, Los Angeles Clippers, Miami Heat, Milwaukee Bucks, Minnesota Timberwolves, Orlando Magic and San Antonio Spurs.
However, those teams will be asked to take a 30% to 40% reduction in their rights fees.
A similar drama unfolded in Major League Baseball in 2023, with Diamond deciding to cut ties on money-losing contracts with the San Diego Padres and Arizona Diamondbacks, with both teams refusing to take haircuts on their rights.
The defections could mean that some Bally Sports channels are shuttered. For example, the Pelicans and Thunder are the only tenants on their respective RSNs. Meanwhile, Bally Sports Southwest, home of the Mavericks, just saw the NHL's Dallas Stars leave the channel for their own hybrid broadcast/DTC arrangement.
