|
Diamond Sports Group, the bankrupt operator of regional sports networks, has announced a commercial agreement with streaming giant Amazon that will allow in-market fans to watch their teams through Prime Video. The agreement extends to Diamond's 16 RSNs in 31 states and will be available "as an add-on subscription" for those who already have access to Amazon Prime, limited to customers corresponding within each team's designated geographic area, Diamond announced in a news release. Pricing and a start date have yet to be determined. The agreement is nonexclusive, which means fans can also stream local games through the FanDuel Sports Network website. It was the first of several positive developments Wednesday for Diamond, which will begin its confirmation hearing in bankruptcy court Thursday morning. Later, Major League Baseball and the Atlanta Braves withdrew their objection from last Friday, seemingly clearing a path for Diamond to emerge as a restructured business. In a brief filed ahead of its hearing, Diamond also announced it has reached new linear and digital agreements with the Detroit Tigers and Tampa Bay Rays, along with an amended deal with the Braves. That leaves the Kansas City Royals -- a joint-venture team with partial ownership of its regional sports network and thus not part of the bankruptcy proceedings -- as the only unsettled MLB club. Diamond announced as part of a restructuring support agreement in January that Amazon would become a minority investor, infusing the company with $115 million, while also entering into a commercial arrangement that would provide access to Diamond's services via Prime Video. Roughly seven months later, while simultaneously negotiating an 11-year media-rights deal with the NBA and the WNBA, Amazon pulled out as an investor. Diamond, though, still hoped to negotiate a commercial agreement with Amazon -- and was finally able to finalize one the day before its confirmation hearing. In a statement, Diamond CEO David Preschlack wrote that the deal with Amazon "creates a tremendous opportunity for us to expand our reach and better connect with viewers." "Our partnerships with Prime Video and FanDuel combine with our agreements with team, league and distribution partners to support a transformative reorganization of our business, and a leading linear and digital offering that will continue driving long-term value and enhanced experiences for our partners and fans," Preschlack added. Diamond, which has been in Chapter 11 bankruptcy for 20 months, retains linear and digital streaming rights for 13 NBA teams, including the: Atlanta Hawks, Charlotte Hornets, Cleveland Cavaliers, Miami Heat, Orlando Magic, Detroit Pistons, Indiana Pacers, Milwaukee Bucks, Minnesota Timberwolves, Oklahoma City Thunder, LA Clippers, San Antonio Spurs and Memphis Grizzlies. It also has the following eight NHL teams in its portfolio: Carolina Hurricanes, Columbus Blue Jackets, Los Angeles Kings, Nashville Predators, Detroit Red Wings, Minnesota Wild, St. Louis Blues and Tampa Bay Lightning. Diamond announced earlier this week it would offer single-game offerings for direct-to-consumer NBA and NHL games beginning Dec. 5, with individual games starting at $6.99. Many of the company's MLB deals were uncertain until Wednesday. Diamond declared in court in October that it would retain only one existing MLB deal -- for the Braves, a team for which they did not possess streaming rights. Diamond had since announced a multiyear streaming and linear agreement with the St. Louis Cardinals and had agreed to terms with the Los Angeles Angels and Miami Marlins. The Tigers and Rays deals were lumped in with the others in the company's court filing Wednesday afternoon. It is unclear whether the new Braves deal includes direct-to-consumer rights. MLB and the Braves formally filed an objection to Diamond's reorganization plan last Friday, writing that they possess "grave concerns that, if the plan is confirmed, there is a substantial likelihood that the debtors will find themselves once again in financial distress and/or bankruptcy court in the near future." Diamond wrote in its court filing Wednesday that with the aforementioned deals secured, "the MLB Objection has been resolved."
|
