As the National Basketball Association (NBA) season begins, many fans will notice something different when tuning in to local television broadcasts.
Bally Sports is now the FanDuel Sports Network, following the bankruptcy of its owner, Diamond Sports Group.
Key Highlights
- The rebranding agreement comes as Bally Sports own Diamond Sports Group is in bankruptcy.
- Diamond began missing payments to its team and broadcasting partners in February 2023.
- MLB is taking over the broadcasts of the Brewers, Guardians, and Twins, as their contracts with Diamond have ended.
Same Broadcast, New Name
FanDuel and Diamond Sports announced the rebranding agreement last Friday; the name change officially took effect on Monday, October 21.
Thus, viewers of Diamond’s regional sports channels will now see the FanDuel Sports Network branding, as opposed to the familiar, red cursive Bally’s name.
The regional sports networks cover eight Major League Baseball (MLB) teams, eight National Hockey League (NHL) teams, and 13 NBA teams.
….having finalized agreements with the NBA, NHL and our key distributors, we remain focused on moving our business forward and driving value for our team partners and our stakeholders
– Diamond Sports Group CEO David Preschlack
The deal also includes the rights to syndicate FanDuel TV programs on FanDuel Sports Network. Once TVG, FanDuel TV focuses on horse racing, betting, and studio shows centered around mainstream sports.
“Collaborating with FanDuel provides a tremendous pathway for Diamond to elevate the fan experience and deepen the incremental value we provide for our team, league and distribution partners,” said Diamond CEO David Preschlack in a press release.
“This partnership reinforces opportunities to further strengthen the close connection our RSNs have with local fans, including enhancing our DTC offering for a growing digital audience. In the meantime, having finalized agreements with the NBA, NHL and our key distributors, we remain focused on moving our business forward and driving value for our team partners and our stakeholders.”
Short-Lived Success
Though some of the regional sports networks in Diamond’s portfolio go back decades, Diamond’s involvement really began in late 2017 when Disney bought 21st Century Fox.
As part of the acquisition, the US Justice Department required Disney to divest the regional sports networks. Disney owned ESPN and would have had too large a hold on the US televised sports market.
In May 2018, Sinclair Broadcast Group agreed to buy the regional sports networks through its subsidiary Diamond Sports Group for $10.6 billion. The deal was completed a little over a year later.
Sinclair signed a naming rights agreement with Bally’s in 2020 to rebrand the regional sports networks as Bally Sports. The rebrand occurred in March 2021.
Diamond’s Descent Into Bankruptcy
It wasn’t long, though, before Diamond Sports Group ran into financial problems. On February 15, 2023, it missed a $140 million interest payment and filed for bankruptcy a month later.
During bankruptcy, the company missed payments to a multitude of professional sports teams and broadcasting companies.
When Diamond missed a second payment to the San Diego Padres in May 2023, the team’s television rights were given to Major League Baseball. The dominoes continued to fall as Diamond continued to miss payments, and it lost the rights to many of its sports broadcasts.
Diamond Sports Group finally filed its reorganization plan on March 1, 2024. In the meantime, some cable providers, including Comcast, dropped Bally Sports.
MLB to Take Over Some Broadcasts
As part of the rebranding agreement, FanDuel has the option to take a 5% equity stake in Diamond Sports when Diamond exits bankruptcy.
Though the Bally Sports networks will be rebranded to FanDuel, the Cleveland Guardians, Milwaukee Brewers, Minnesota Twins, and Texas Rangers’ contracts with Diamond ended with the close of the 2024 MLB regular season.
The league is taking over broadcasts of the Brewers, Guardians, and Twins games for the 2025 season. The Rangers are looking into other regional broadcast options, including producing them themselves.
Sources
https://help.fanduelsportsnetwork.com/Answer/Detail/000001509
https://www.espn.com/mlb/story/_/id/41871214/diamond-sports-groups-channels-branded-part-fanduel-sports-network-deal
https://www.usatoday.com/story/sports/media/2024/10/18/bally-sports-fanduel-sports-network/75735218007/
https://en.wikipedia.org/wiki/FanDuel_Sports_Network
