Diamond Sports Group can emerge out of bankruptcy after having reorganization plan approved
Diamond Sports Group, the largest owner of regional sports networks, can emerge out of bankruptcy after having its reorganization plan approved
Diamond Sports Group, the largest owner of regional sports networks, can emerge out of bankruptcy after having its reorganization plan approved Thursday.
Judge Christopher Lopez gave the go ahead during a hearing in U.S. Bankruptcy Court in Houston that lasted 90 minutes.
“This case was no layup, not for anyone. A lot of hard work went into this," Lopez said during the hearing.
Diamond Sports had been in Chapter 11 bankruptcy proceedings in the Southern District of Texas since it filed for protection in March 2023. The company said in a financial filing last year that it had debt of $8.67 billion.
Diamond will emerge out of bankruptcy with significantly less debt — around $200 million — but also with fewer teams and networks.
When Diamond entered bankruptcy, it owned 19 networks under the Bally Sports banner and had the rights to 42 professional teams (14 baseball, 16 NBA and 12 NHL).
The reorganized company now operates under the FanDuel Sports Network banner after agreeing to a naming rights deal last month. It has 16 networks and carries games for 27 franchises (six baseball, 13 NBA and eight NHL).
The 16 networks cover fans in 31 states. The company expects to complete the restructuring process in the coming weeks.
“Today is a landmark day for Diamond, as we embark on a new path for our business. Diamond is now unencumbered by legacy debt, financially stable and enthusiastically supported by new ownership," Diamond CEO David Preschlack said in a statement. “Looking ahead, Diamond is well-positioned to further enhance its product offering and remains committed to delivering
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