Amazon has made headlines with its recent acquisition of a minority stake in Diamond Sports Group’s Bally Sports regional networks. This strategic move comes as part of Diamond’s bankruptcy restructuring, allowing Amazon to stream games aired on Bally Sports channels through its Prime platform.
Impact on Sports Fans
This partnership is particularly significant for sports enthusiasts who rely on television services that do not currently carry Bally Sports. With nearly 40 professional teams across Major League Baseball (MLB), the National Basketball Association (NBA), and the National Hockey League (NHL) tied to Bally Sports, this development opens up new viewing options for local fans.
- Prior to this agreement, many YouTubeTV subscribers were unable to watch their local teams without additional Bally Sports subscriptions.
- Now, those with an Amazon Prime membership can enjoy live coverage of their favorite teams’ games.
Statements from Leadership
David Preschlack, CEO of Diamond Sports Group, expressed optimism regarding the restructuring. He stated, “We are thrilled to have reached a comprehensive restructuring agreement that provides a detailed framework for a reorganization plan and substantial new financing that will enable Diamond to operate and thrive beyond 2024.” Preschlack emphasized the crucial support from Amazon and key creditors, highlighting their belief in the potential value of the business.
Background of the Deal
Diamond Sports acquired the Fox Sports regional networks in August 2019. This acquisition was mandated by the U.S. Department of Justice as part of Disney’s divestiture when it bought 21st Century Fox. However, as viewer preferences shifted away from traditional cable services, Diamond faced significant financial challenges. The company filed for bankruptcy in March 2023, leading to immediate repercussions in local broadcasting.
For instance, when Diamond failed to pay the San Diego Padres, Major League Baseball stepped in to manage the team’s broadcasts. Further complications arose as Diamond was ordered to settle debts with other teams, underscoring the financial turbulence within the organization.
Recent Developments in Broadcasting
In November, the NBA secured a deal ensuring that Bally Sports would continue to broadcast games for 15 teams through the current season. This arrangement followed the departure of the Phoenix Suns and Mercury from Bally Sports, as they opted for free over-the-air television instead.
As the landscape of sports broadcasting evolves, Amazon’s investment in Bally Sports represents a significant shift that could pave the way for more accessible viewing options for fans across the country.