As Diamond Sports Group waits to learn whether or not it will be granted an extension to file a reorganization plan with its creditors under Chapter 11 bankruptcy, it is seeking to forgo one of its broadcasting contracts. Just one week ahead of puck drop for the 2023-24 NHL regular season, Bally Sports Arizona is looking to exit its deal with the Arizona Coyotes.
If it is successful, the Coyotes would complete the gradual dissolution of professional play-by-play rights from Bally Sports Arizona.
The regional sports network lost the Arizona Diamondbacks during the second half of the MLB season, while the Phoenix Suns and Phoenix Mercury took their rights to over-the-air television.
“The debtors have determined, in their business judgment, that the Coyotes agreement no longer fits within the debtors’ long-term plans and should be rejected,” Diamond Sports Group said in a court filing. “….The debtors have discussed the relief requested in this motion with the Coyotes, and the parties have mutually agreed on this course of action.”
During efforts to construct an NHL-regulated arena in Mesa, Ariz. after being denied by a public vote in nearby Tempe, the Coyotes observed what was happening with Bally Sports Arizona. At that time, the team released a statement in July outlining its current situation and how it would affect its broadcasts for the upcoming season.
“We are fully aware of the developments regarding Bally Sports Arizona,” it read. “The Arizona Coyotes remain under contract with Bally Sports Arizona and remain hopeful that the network will continue to broadcast our games this season. Nonetheless, we will continue to evaluate all of our options, as needed, and will ensure that our great fans across the Valley are able to watch our games this fall.”
Throughout the process of Diamond trying to restructure after bankruptcy, the NHL and NBA have scrutinized the occurrences to make sure that the 27 teams the regional sports network operator carries are aired.
If the bankruptcy court grants this motion, it is unknown where Coyotes games would be televised. The first broadcast for the Coyotes is set to take place on Friday, Oct. 13 when the team visits the New Jersey Devils to open the season.
“The Coyotes have consented to this relief, and the debtors understand that the Coyotes and the NHL have transition plans in place to facilitate the continued distribution of Coyotes games to fans,” Diamond Sports Group said in the motion.
