As Diamond Sports Group works towards a consequential confirmation hearing in an attempt to emerge from Ch. 11 bankruptcy, it will enter the upcoming National Basketball Association without regional broadcast rights for the New Orleans Pelicans. The organization has opted to broadcast its games on over-the-air television, according to a report by Christian Clark of The Times-Picayune. Last season, the Pelicans presented some of their games on WVUE-TV FOX 8, owned by Gray Television, and has now reportedly struck a multiyear partnership with the company. All 82 regular-season Pelicans games will be available for free in various locales across the states of Louisiana, Mississippi and Alabama.
The Pelicans qualified for the NBA Playoffs last season but were swept out of the opening round by the Oklahoma City Thunder in four games. The team has young stars and prodigious veterans, including Zion Williamson, Brandon Ingram and CJ McCollum, along with a variety of budding talent and impactful role players. For the 2023-24 season, the NBA and Diamond Sports Group reached an agreement allowing the regional sports network subsidiary to air regional broadcasts for 15 teams within the league. The two sides are discussing a deal for the 2024-25 season and have yet to reach an agreement, although Diamond stated that it was in conversations with the league at its last bankruptcy hearing.
Diamond Sports Group could reportedly aim to eliminate the regional sports network contracts for up to five of its NBA teams, according to a report filed last week by Tom Friend of Sports Business Journal. These organizations would include the New Orleans Pelicans, along with the Oklahoma City Thunder, Memphis Grizzlies, Dallas Mavericks and Detroit Pistons. If Diamond Sports Group remains intact through the bankruptcy proceedings, the company is reportedly expected to honor agreements for the other 10 teams its broadcasts, and potentially up to two more. Friend added that teams expect to see a diminution of local rights fees by 30 to 40% for the upcoming season.
The Phoenix Suns left Diamond Sports Group last April to broadcast games over-the-air with Gray Television and created a proprietary streaming functionality as well. When Warner Bros. Discovery exited the regional sports network business last year, the Utah Jazz started broadcasting games over the air on Sinclair Broadcast Group-owned KJZZ and created a streaming option as well. Ahead of the start of the 2023-24 season, the LA Clippers franchise renewed its over-the-air television contract with KTLA to broadcast 11 regular season games, while Bally Sports SoCal continued to present the other regular-season contests.
The Dallas Mavericks broadcast 10 games on TEGNA-owned WFAA-TV, and the Oklahoma City Thunder presented eight Friday night matchups on Griffin Media’s KSBI. Furthermore, the Detroit Pistons televised five games on WMYD, which is owned by The E.W. Scripps Company. Scripps Sports, a subsidiary of the parent company, recently signed a multiyear agreement with the Florida Panthers to air its home games and inked a similar deal with the Vegas Golden Knights after the team won the Stanley Cup Championship.
Earlier in the year, Diamond Sports Group reached a deal with Amazon in which the media and retail company would provide convertible notes of $115 million upon the company’s exit from bankruptcy. This remuneration would be used to pay down the $450 million of junior secured super priority debtor-in-possession financing, which will result in junior creditors assuming operations of the subsidiary.
Before the approval of such financing, Diamond Sports Group had reached agreements with the NBA and NHL on plans to revert the broadcast rights back to the leagues following the conclusion of the 2023-24 season. The bankruptcy judge also approved an amended management services agreement between Diamond and its parent company, Sinclair, which it sued earlier in the process for misconduct.
