Diamond Sports Group, the owner of 18 regional sports networks that is currently working to find a path out of Ch. 11 bankruptcy, was unable to reach a new carriage agreement ahead of the Tuesday deadline. As a result, customers subscribing to the service are now unable to watch local teams play on their respective regional sports network(s). In fact, subscribers who try to view the channel on their services now see a message explaining what is taking place. Both companies issued statements explaining the manner that officially materialized upon the expiration of the existing deal.
“It’s disappointing that Comcast rejected a proposed extension that would have kept our channels on the air and that Comcast indicated that it intends to pull the signals, preventing fans from watching their favorite local teams,” Diamond Sports Group said in a statement. “Comcast has refused to engage in substantive discussions despite Diamond offering terms similar to those reached with much larger distributors of ours.
“We are a fans-first company and will continue to seek an agreement with Comcast to restore broadcasts, and at this critical juncture for Diamond, we hope that Comcast will recognize the important and mutually beneficial role Diamond and RSNs play in the media ecosystem. In the meantime, fans in Comcast regions can access our networks through subscriptions to Fubo, DirecTV or DirecTV STREAM or through our direct-to-consumer offering, Bally Sports+ for the teams for which Diamond retains DTC rights.”
“We have been very flexible with Diamond Sports Group for months as they work through their bankruptcy proceedings, providing them with an extension on the Bally Sports Regional Networks last fall and a unilateral right to extend the term for another year, which they opted to not exercise,” Comcast said in a statement. “We’d like to continue carrying their networks, but they have declined multiple offers and now we no longer have the rights to this programming. We will proactively credit our customers for the costs associated with them — most will automatically receive $8 to 10 per month in credits.”
The outcome comes two weeks after a bankruptcy judge had approved a disclosure statement with $450 million of debtor-in-possession (DIP) financing, $350 million of which is allocated to pay its first-lien debt holders. As part of the restructuring, Amazon is prepared to invest $100 million into Diamond Sports Group while becoming the primary streaming partner for the company. Moreover, the company was approved to hold a creditor vote on reorganization that the bankruptcy court will take into its decision-making process in a decision regarding restructuring.
Diamond stated in previous court proceedings that 81% of its affiliate revenue comes from distribution agreements with Charter Communications, DirecTV and Comcast. Earlier this month, the company was able to reach a multi-year renewal of its distribution agreement with Charter. This enabled the provider to continue carrying its networks through the Spectrum TV Select Plus package and allows subscribers to stream the network on the Bally Sports app. Additionally, Diamond came to terms on a multi-year carriage renewal with DirecTV as first reported by John Ourand of Puck News on Monday afternoon.
