Amazon Takes Stake in Diamond Sports, Is Set To Offer DTC Services

Amazon Takes Stake in Diamond Sports, Is Set To Offer DTC Services Customers will be able to access local DTC content, including live MLB, NBA, and NHL games By Ken Kerschbaumer, Editorial Director

Wednesday, January 17, 2024 - 10:57 am

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It has been a big day in the world of regional sports networks: Amazon is making a minority investment of a reported $115 million (with an option to invest an additional $50 million) into the Diamond Sports Group. According to reports, the move will make the Amazon Prime Video platform the backbone of Diamond's Bally Sports Plus DTC offering, and, according to Diamond CEO David Preschlack, the larger restructuring deal with Sinclair announced earlier today will enable Diamond to operate and thrive beyond 2024.

We are grateful for the support from Amazon and a group of our largest creditors who clearly believe in the value-creating potential of this business, says Preschlack.

Amazon Prime will be the home of Diamond Sports DTC services.

Prime Video will become Diamond's primary partner through which customers will be able to purchase direct-to-consumer access to stream local Diamond channels. Customers will be able to access through Prime Video channels all local DTC content - including live MLB, NBA, and NHL games and pre/postgame programming - for the teams for which Diamond retains DTC rights. Additional details regarding pricing and availability will be announced later. In addition, Diamond looks forward to continuing to partner with its existing MVPD distribution partners to broadcast its MLB, NBA, and NHL content.

Diamond will begin implementing a restructuring service agreement announced today by Sinclair. Settlement terms include DSG's withdrawal of its $1.5 billion litigation against Sinclair and all other defendants in exchange for Sinclair's $495 million cash payment to DSG. Sinclair will provide transition services to enable DSG to become a self-standing entity. The deal is still subject to approval by the court.

Says Preshlack, Diamond's near-term focus will be on emerging from bankruptcy as a going concern for the benefit of our investors; our employees; our team, league, and distribution partners; and the millions of fans who will continue to enjoy our broadcasts.

Just last week, it was reported that, last month, Major League Baseball rejected Amazon's proposed $150 million investment in Diamond Sports.

Diamond Sports, a subsidiary of Sinclair Broadcasting, filed for Chapter 11 protection last March as the landscape for RSNs continued to suffer a seismic shift because of cord-cutting and the subsequent loss of advertising revenue, as the New York Post reported.

The deal seems to give some stability to a situation in which, according to reports in the New York Post, a previous Amazon attempt to invest $150 million in Diamond Sports was shot down by MLB Commissioner Rob Manfred, who wanted any digital MLB deal to be done with MLB, not with Amazon.

Diamond Sports owns 18 networks (branded Bally Sports) that overall have the rights to 37 professional teams: 11 MLB clubs, 15 NBA teams, and 11 NHL teams. Last year, the company filed for Chapter 11 bankruptcy protection. MLB took over production and distribution of the San Diego Padres and Arizona Diamondbacks after DSG let rights payments to the Padres lapse and was unable to agree to an amended deal with the Diamondbacks. Similarly, the Phoenix Suns, Arizona Diamondbacks, and Arizona Coyotes previously had deals with Bally Sports Arizona but ended their agreements in the past year amid Diamond Sports' financial issues.

LINK:	https://www.sportsvideo.org/2024/01/17/amazon-takes-stake-in-diamond-s...
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