FanDuel is reportedly nearing an agreement to purchase naming rights on the 18 regional sports networks owned and operated by Diamond Sports Group, a subsidiary of Sinclair, according to Christopher Palmeri of Bloomberg. As part of the deal, the sports betting company would reportedly acquire an equity stake in the company and involve FanDuel-related programming for the channels. Moreover, FanDuel would also resell Diamond’s streaming service to its customers and fans.
This agreement would replace the existing deal between Diamond Sports Group and Bally’s Corporation, which is expected to expire upon the conclusion of the Major League Baseball season. Although Diamond did not specify its new naming rights partner, it did state it would file a motion for approval with the court in the forthcoming weeks.
FanDuel Group recently announced the expansion of its FanDuel TV network to include a new free ad-supported television (FAST) channel titled FanDuel TV Extra. The outlet currently broadcasts several original programs, including Up & Adams and Run it Back, along with live sports coverage including horse racing, international baseball, international soccer and PokerStars events. Flutter Entertainment, the parent company of FanDuel, listed on the New York Stock Exchange in late January and attained $3.4 billion in revenue with an adjusted EBITDA of $514 million.
Diamond Sports Group is currently looking to restructure its operations and emerge from Ch. 11 bankruptcy, leveraging creditors to try and alleviate more than $8 billion in debt. Junior creditors are expected to assume operations of the subsidiary should its efforts be successful. The company has received approval for a disclosure statement that will help guide it out of bankruptcy, which includes $450 million of debtor-in-possession (DIP) financing, $350 million that would be allocated to pay first-lien debt holders. The remaining of such funding would be transferred to its balance sheet concurrent with live game broadcasts.
While the company reached an agreement with Amazon that will involve financing and streaming games in January, along with signing distribution deals with Charter, Cox, DirecTV and Fubo, the leagues that primarily do business with the company are concerned about its path. Negotiations for Comcast “are currently at an impasse,” an outside counsel for the company said during a hearing on Tuesday morning, although the federal judge over the case is not sure the conglomerate is essential to a deal. Diamond Sports Group remains in negotiations with several stakeholders, but it is looking into alternative solutions because of the situation with Comcast.
Representatives of Major League Baseball, the National Basketball Association and the National Hockey League all voiced their concerns on Tuesday regarding Diamond’s business plan going forward. Major League Baseball has reportedly discussed launching its own direct-to-consumer streaming service utilizing rights from Diamond Sports Group should the company be unable to reorganize. The San Diego Padres and Arizona Diamondbacks were previously televised by Diamond-owned regional sports networks but have had their games produced and disseminated by the league itself since last summer upon the rejection of their agreements. MLB Commissioner Robert D. Manfred Jr. recently stated that Diamond did not have a plan and was unsure about the league’s support of the reorganization plan.
The NBA and NHL also expressed that they were unsure whether Diamond Sports Group would be able to compile and actualize a business plan before their new seasons in the fall. A confirmation hearing for the company’s plan has been scheduled for Monday, July 29 after being pushed back 41 days from its original Tuesday, June 18 date.
