Diamond Sports Group Seeks Emergency Hearing Amid Contract Disputes with Major Leagues

Diamond Sports Group, owner and operator of 19 regional sports networks (RSNs) in the United States, has requested an emergency hearing from the federal bankruptcy court in Texas.

The aim is to delay contract demands made by its league partners.

Diamond holds local broadcast rights for 12 Major League Baseball (MLB), 11 National Hockey League (NHL), and 15 National Basketball Association (NBA) franchises.

These leagues are seeking to review Diamond's contracts with carriers, which Diamond and at least one carrier are attempting to prevent.

Despite ongoing Chapter 11 bankruptcy restructuring, Diamond has signed new carriage agreements with DirecTV, Cox, and Charter.

However, negotiations remain stalled with Comcast, the largest pay-TV carrier, with 13.6 million cable subscribers.

Diamond has indicated in filings that distributor payments constitute approximately 81% of its revenue.

Following Diamond's request for an emergency hearing, Cox expressed concerns in a letter to the presiding judge regarding the "highly sensitive information" requested by the leagues.

Cox's lawyer, Stuart Lombardi, emphasized that the contracts and market information "constitute trade secrets that Cox guards closely," and their disclosure could lead to significant competitive harm.

MLB has been particularly critical of Diamond. In October, MLB informed the court that "time is up" for a restructuring plan as the league's patience waned.

Recently, MLB and its clubs have raised concerns about the ongoing negotiations between Diamond and Comcast, with Bally Sports currently unavailable on the largest carrier in the nation.

The NHL and NBA also have grievances.

Although the court approved a refinancing plan, it left the NHL and NBA's deals to regain their rights from Diamond uncertain.

Diamond claims to have deals on the table for both leagues.

A crucial hearing is scheduled for July 29, where Diamond must present a "very clear" restructuring plan.

If no agreement is reached by the start of the new NHL and NBA seasons in October, the leagues may need to find alternative ways to broadcast their games locally.

MLB has already taken over production and distribution for the San Diego Padres and Arizona Diamondbacks, broadcasting their games on MLB.TV after Diamond terminated contracts with the clubs.

The NBA and NHL have indicated they can implement similar plans if necessary.

As part of the Chapter 11 restructuring, Diamond received an investment from Amazon, granting Amazon streaming rights to Diamond's properties.

Currently, Diamond's RSNs operate under the Bally Sports name, but FanDuel has emerged as the new naming rights partner for these networks.