Diamond Sports Group reaches new deal with NBA for local rights

The NBA threw more than an assist to Diamond Sports Group but a lifeline of sorts.

The beleaguered operator of Bally Sports networks across the United States reached a new local broadcasting rights deal with the fifteen teams it retained agreements with for the 2023-24 season. For several months, Diamond has been trying to shed costs and reorganize while in the midst of Chapter 11 bankruptcy proceedings in federal court.

Concerns about the future of the regional sports channels were high after DSG broke agreements with the San Diego Padres and Arizona Diamondbacks in Major League Baseball, and the NHL's Arizona Coyotes. Separately, the NBA's Phoenix Suns and their WNBA sibling team, the Mercury, left Bally Sports Arizona for local broadcast television. At different stages of the bankruptcy proceedings, DSG had petitioned to lower their monthly rights payments to several MLB teams, including the World Series champion Texas Rangers, to varied successes.

In a statement posted by The Athletic's Mike Vorkunov, DSG said that the deal with the NBA as well as potential agreements with NHL and Major League Baseball teams will help the company in its course correction:

“Our newly-signed agreements with the NBA, Comcast and our creditors reflect significant progress on Diamond’s path forward,” Diamond Sports said through a spokesperson. “Upon Court approval, these agreements will enable Diamond to continue delivering live game broadcasts to fans throughout the 2023–24 NBA, NHL and MLB seasons. Diamond has been broadcasting NBA and NHL games and will continue to do so while the court considers our motions, and while discussions with the NHL finalize with respect to their own new deal.”

This doesn't mean that the networks or the holding company at large are out of the woods. All linear channels are struggling as cable and satellite companies hemorrhage subscribers and inflation continues to put a dent in consumer spending. Plus, technical problems that plagued the Bally Sports+ streaming service in recent days aren't exactly giving consumers and sports leagues any confidence that the company can improve its standing.

That said, this deal could potentially raise the price of the bankrupted assets for Sinclair as the company that created DSG as a joint venture with Entertainment Studios is interested in reclaiming them for a relative bargain.