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Alden Gonzalez, ESPN Staff Writer
A federal judge approved Diamond Sports Group’s deals with the NBA and NHL on Tuesday, another step forward in the bankrupt operator’s nearly 18-month quest to emerge from Chapter 11 reorganization.
A representative for Diamond, which runs regional sports networks under the name Bally Sports, said the company hopes to file a reorganization plan that will allow for confirmation hearings at some point within the first half of November.
The judge also approved Diamond’s request to eliminate its contracts with the NBA’s Dallas Mavericks and New Orleans Pelicans. Diamond’s revised deals with the NBA and NHL, details of which have not been made public, ensure that the company will air games for the 22 teams still under its portfolio for the entirety of the upcoming 2024-25 seasons, regardless of whether it ultimately emerges from bankruptcy.
That certainty became necessary as Diamond’s confirmation hearings — in which a bankruptcy judge would essentially decide whether Diamond can move forward as a business — were delayed twice in the wake of new developments. An original date of June 18 was moved to the end of July, then pushed back even further to allow Diamond to finalize a new carriage agreement with Comcast, which previously took Bally Sports channels off the air. Diamond attorney Joe Graham said in bankruptcy court that the new deals with the NBA and NHL require the company to emerge from bankruptcy by April 1, 2025.
Tuesday’s development wasn’t without strong pushback from MLB, which on Friday filed a reservation of rights that called Diamond’s new agreements into question. In a 14-minute presentation Tuesday, MLB attorney James Bromley expressed frustration over a lack of transparency on the details of the new NBA and NHL deals and once again called Diamond’s long-term viability into question, pointing to recent reports that Amazon had backed out of a prior agreement to invest $115 million.
MLB’s biggest gripe, however, revolves around an April 1 deadline that would likely trigger yet another offseason of uncertainty regarding the state of major league teams’ regional sports contracts. Said Bromley: “This is now the fourth season in a row that Major League Baseball is heading into the offseason with a complete lack of information and clarity with respect to what’s going to happen with respect to Diamond Sports and its ability or willingness to broadcast Major League Baseball games.”
Bankruptcy judge Chris Lopez called Diamond’s agreements with the NBA and NHL “a step in the right direction” but also said the court took MLB’s concerns “very seriously.” Another status conference is expected during the first week of October, by which point a confirmation date could be solidified.
Source: www.espn.com