The parent company of Bally Sports Southwest and other Bally-branded regional sports networks on Wednesday announced a deal with most of its debt holders that could solve the whole broadcast sports mess, thanks, in part, to an investment from Amazon Prime to allow for direct-to-consumer streaming.
And while it sounds like it could be a pathway to a long-term deal to keep the RSN model from complete collapse, there remains one issue: None of the parties that actually have the ability to make this seemingly ideal solution come to fruition are saying anything. At the moment, the only party talking is Diamond Sports, owner of the Bally RSNs and currently in Chapter 11 bankruptcy. It doesn’t control its destiny.
Advertisement
“We are thrilled to have reached a comprehensive restructuring agreement that provides a detailed framework for a reorganization plan and substantial new financing that will enable Diamond to operate and thrive beyond 2024,” Diamond Sports CEO David Preschlack said in a statement. “We are grateful for the support from Amazon and a group of our largest creditors who clearly believe in the value-creating potential of this business.”
Advertisement
MLB officials did not comment on the statement.
Rangers Be the smartest Rangers fan. Get the latest news. SIGN UP Or with: Google Facebook By signing up you agree to our Terms of Service and Privacy Policy
While a promising development, there are still multiple steps to clear before this happens, though. Most significant, a U.S. bankruptcy court judge must approve the plan. The next court date is set for Friday in Houston.
According to a report, Amazon will make a minority investment in the company as part of the proposal. It will use its Prime Video platform to offer direct-to-consumer access to MLB, NBA and NHL games, including pregame and postgame content of its various RSNs on a local basis. The size of the investment and other details have yet to be disclosed.
Advertisement
In the Wednesday announcement, Diamond says it also has a deal with equity owner Sinclair Broadcasting Group in which Sinclair will pay Diamond $495 million to settle outstanding litigation.
It is unclear how this will impact the Rangers. The club averages $111 million in annual revenue through its contract with Diamond. It ended up getting its full amount for 2023, though Diamond was late with at least one payment. In negotiations, Diamond had considered dropping the Rangers before an 11th-hour change in December ahead of a court hearing. That led to a postponement into January. A hearing had been scheduled for last week, but was pushed back again after more promising negotiations between Diamond, its debt holders and the leagues it broadcasts.
The Rangers and other MLB teams had been focused on trying to settle the 2024 situation.
Advertisement
Advertisement
Find more sports coverage from The Dallas Morning News here.
Parent of Bally Sports Southwest says it has deal with debt holders, but is there a catch?
- Advertisment - 