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Extra change is coming to Diamond Sports activities’ regional sports activities networks.
The corporate mentioned in court docket papers filed Tuesday that it reached a naming rights cope with Flutter-owned FanDuel, which is able to rebrand the Bally Sports activities channels simply because the Nationwide Hockey League season has began and the Nationwide Basketball Affiliation’s 2024-2025 season is lower than per week away.
Diamond Sports activities mentioned within the submitting that if it is ready to emerge from chapter safety, FanDuel will probably be a “long-term naming rights associate.” The brand new naming rights settlement would additionally give FanDuel the best to purchase as much as 5% of fairness within the reorganized firm and get efficiency warrants for as much as 5% of fairness.
The settlement is topic to court docket approval.
The brand new partnership will permit Diamond Sports activities to get one step nearer to rising from chapter and can give FanDuel, which is already the highest sports activities betting firm by market share, much more publicity.
In Tuesday’s court docket papers, Diamond mentioned that whereas discussions with FanDuel started in February, it waited till it finalized agreements with the NBA and NHL to barter the ultimate phrases of the naming rights deal. A FanDuel consultant declined to remark past the filings, and the particular monetary phrases of the settlement weren’t disclosed.
Diamond Sports activities mentioned in court docket papers it thought-about FanDuel “a pretty potential associate … as a result of excessive diploma of alignment” between the regional sports activities networks and the net gaming enterprise.
This would be the regional sports activities networks’ third title. As a part of its acquisition of Fox Corp.’s belongings, Disney needed to divest the networks with the intention to achieve regulatory approval. Disney offloaded the networks, nonetheless below the Fox Sports activities banner, in 2019 to Sinclair. A naming rights deal was later signed with gaming firm Bally’s Corp.
The Bally’s Corp. settlement ended as a part of the settlement that got here earlier this yr between Diamond Sports activities and Sinclair.
Diamond, which stays an independently run, unconsolidated subsidiary of Sinclair, alleged within the lawsuit that Sinclair’s possession exacerbated its issues. Sinclair didn’t admit wrongdoing.
Diamond Sports activities filed for chapter safety final yr. Since then, Diamond’s restructuring has been full of back-and-forth discussions with the NBA, NHL and Main League Baseball because the debt-saddled firm has tried to emerge from chapter.
Diamond Sports activities has mentioned in court docket papers that primarily based on monetary projections, it hopes to emerge from chapter as early as December.
All through the chapter proceedings, groups throughout all three leagues have been exiting the networks and flocking to totally different native viewing choices for his or her followers.
Earlier this month, Diamond Sports activities mentioned it was planning to drop all of its MLB groups apart from the Atlanta Braves for the 2025 season. The prevailing groups’ contracts are in numerous levels with Diamond Sports activities, however in complete, the corporate would see 11 MLB groups exit.
A Diamond Sports activities legal professional mentioned in court docket earlier this month that dropping these groups “will not be our most popular path.”
A number of MLB groups, together with the San Diego Padres and Arizona Diamondbacks, left the regional sports activities networks in 2023, and the MLB has produced the groups’ native video games since then. On Tuesday, the league introduced it might additionally do the identical for the Milwaukee Brewers, Cleveland Guardians and Minnesota Twins for the 2025 season.
Some NBA groups which have left the regional sports activities networks have turned to native broadcast stations to air native video games. The NHL’s Dallas Stars and Anaheim Geese have launched over-the-top streaming partnerships with Victory+, a sports activities streamer owned by Canada-based A Guardian Media Co., for his or her native viewing.
