Diamond Sports Group, the largest U.S. operator of regional sports networks (RSNs), has announced a restructuring support agreement (RSA) with creditors, outlining a plan for the company to emerge from Chapter 11 bankruptcy and continue its operations. As part of this framework, Amazon will make a minority investment in the company and become its primary streaming partner. Additionally, TV station giant Sinclair will make a $495 million cash payment to settle litigation.
Under the RSA, certain debt holders have committed to providing $450 million in financing to support Diamond’s operations as it finalizes a reorganization plan and repays $350 million of existing debt.
Diamond operates 19 RSNs under the Bally Sports brand name, featuring games from over half of all MLB, NBA, and NHL teams.
The agreement with Sinclair aims to settle pending litigation and includes ongoing management and transition services to support Diamond’s reorganization and separation from Sinclair’s operations. The settlement also involves the withdrawal of Diamond’s $1.5 billion litigation against Sinclair and other defendants, with Sinclair estimating a net cost of approximately $250 million-$325 million after considering tax benefits and other assets received.
Amazon is set to establish a commercial arrangement to offer access to Diamond’s services via Prime Video, making Prime Video Channels the primary platform for customers to purchase direct-to-consumer access to stream local Diamond channels. This will include live MLB, NBA, and NHL games, as well as pre- and post-game programming for teams for which Diamond retains DTC rights. Details regarding pricing and availability will be announced at a later date.
