Diamond Sports Group reaches agreement with Amazon
Diamond Sports Group, the bankrupt operator of regional sports networks, has announced a commercial agreement with the 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 Wednesday.
Pricing and a start date have yet to be determined. The agreement is non-exclusive, which means fans can also stream local games through the FanDuel Sports Network website.
In a statement, Diamond CEO David Preschlack wrote: “Partnering with Prime Video, one of the largest streaming destinations in the U.S., and making FanDuel Sports Network available as part of their add on subscriptions, 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.”
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 a $1.93 billion 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.
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, Miami Heat, Orlando Magic, Minnesota Timberwolves, Oklahoma City Thunder, Los Angeles 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, Los Angeles Kings, Minnesota Wild, St. Louis Blues and Tampa Bay Lightning.
Diamond announced earlier this week that it would offer single-game offerings for direct-to-consumer NBA and NHL games beginning Dec. 5, with individual games starting at $6.99.
The company is still seemingly sorting through its baseball contracts. Diamond declared in court in October that it would retain only one pre-existing MLB deal — for the Atlanta Braves, a team for whom they do not possess streaming rights. Diamond has since announced a multi-year streaming and linear agreement with the St. Louis Cardinals and is close to finalize similar deals with the Los Angeles Angels and Miami Marlins. The company is still in talks with the Detroit Tigers, Kansas City Royals and Tampa Bay Rays, a source familiar with the process said.
Five MLB teams have parted ways with Diamond since the start of October, a list that includes the Minnesota Twins, Milwaukee Brewers, Cleveland Guardians, Texas Rangers and, more recently, Cincinnati Reds.
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 faces a Wednesday deadline to file a response.
Source: espn.com