NBA, NHL Register Concerns After Diamond Sports Group’s Latest Request for Bankruptcy Extension

A new development in the Diamond Sports Group bankruptcy case has raised concerns from the NBA and NHL regarding the broadcaster’s future. With a total of 26 teams between them, both leagues air their games on regional sports networks (RSNs) under the Bally Sports brand, which is owned by Diamond, the parent company currently operating under Chapter 11 bankruptcy protection for over a year as it seeks to resolve its long-term viability.

In late March, Diamond filed for an extension to extend the deadline for approval of its reorganization plan from creditors, including the leagues, until November. While the leagues initially remained silent, recent responses from the NBA and NHL to this extension request indicate a lack of unconditional support.

The NBA expressed deep concern in a court filing about the possibility that Diamond might not emerge from bankruptcy until the 2024-25 basketball season. Similarly, the NHL expressed uncertainty about Diamond’s ability to secure the necessary agreements to resume operations successfully.

Diamond’s next challenge lies in negotiating a new carriage deal with DIRECTV. Although the statements submitted to the court by the leagues are not entirely supportive, they are not outright objections either. Rather, they seek further clarification on the broadcaster’s plans. The NBA, for instance, expressed concerns about potential disruptions bleeding into the next season due to ongoing uncertainties.

The NBA specifically requested an update on Diamond’s negotiations with Charter Communications, particularly regarding payment terms, while the NHL is seeking more details before granting approval for the extension request. The NHL emphasized that the 11 hockey teams whose rights are held by Diamond are in a similar position as last spring concerning their agreements and ongoing business relationships with the company.

In essence, there is no assurance that these NHL teams will continue to be broadcast on Bally Sports RSNs next season, prompting the league to seek more clarity. Notably, MLB, known for its strained relationship with Diamond, expressed doubts about the broadcaster’s ability to convince the court that its reorganization plan would avoid liquidation or further financial restructuring.