Diamond Sports Group

Diamond Sports Group LLC is an American media and entertainment company operating as a subsidiary of Sinclair Broadcast Group, and partnered with Entertainment Studios. The company operates Bally Sports, a group of regional sports channels that was formerly known as the Fox Sports Networks.

Diamond Sports Group LLC
Key people
David Preschlack (CEO)
David DeVoe (CFO and COO)
Randy Freer (board member)
Mary Ann Turcke (board member)
Bob Whitsitt (board member)
Chris Ripley (board member)
ServicesBally Sports networks
OwnerSinclair Broadcast Group, Entertainment Studios

History

Sinclair Broadcast Group formed the company with Byron Allen's Entertainment Studios to acquire 22 regional Fox Sports Networks affiliates and Fox College Sports from The Walt Disney Company, which was required to divest of these networks to secure government antitrust approval.[1] The transaction, initially valued at $10.6 billion, is managed through a joint venture called Diamond Holdings Group,[2] and formally closed the transfer in August 2019 for $9.6 billion.[3]

The company's regional sports networks have exclusive broadcasting rights to 42 professional teams (including 16 National Basketball Association teams, 14 Major League Baseball teams, and 12 National Hockey League teams),[4] and the channels collectively generated $3.8 billion in 2018, across nearly 75 million subscribers.[2]

Sinclair took a $4.23 billion write-down of its regional sports assets in 2020 after a downturn in the business.[5]

On November 18, 2020, Sinclair announced that it had entered into an agreement with casino operator Bally's Corporation to acquire the naming rights under a 10-year deal.[6]

On January 27, 2021, Sinclair announced that the networks would be rebranded as Bally Sports on March 31.[7][8][9] In December 2021, the company reached an extension agreement with the National Hockey League.[10]

On May 2, 2022, Diamond Sports Group assembled a board of five directors, made up of Bob Whitsitt, Sinclair CEO Chris Ripley, Randy Freer, a former Fox Sports/Hulu executive, Mary Ann Turcke, a former COO of the NFL, and David Preschlack (previously President of the NBC Sports Regional Networks); Preschlack would be elected CEO of Diamond on December 5.[11]

On June 23, 2022, Bally Sports soft-launched a direct-to-consumer service known as Bally Sports Plus (or Bally Sports+) in selected markets. It is expected to launch nationally in the remainder of the networks' footprint on September 26.[12]

On December 4, 2022, Diamond Sports Group's board had voted to block the Sinclair Broadcast Group from operating Diamond and its regional sports networks.[13]

On February 15, 2023, Diamond Sports Group failed to make a $140M interest payment, instead opting for a 30-day grace period to make the payment.[14] During this grace period, Diamond Sports also missed a rights payment to the Arizona Diamondbacks.[15] On March 14, 2023, Diamond Sports officially filed for Chapter 11 Bankruptcy. Diamond Sports said in a statement they intended to operate the Bally Sports regional sports networks as normal through the bankruptcy process.[16] As part of their restructuring under bankruptcy, Diamond Sports will separate from the Sinclair Broadcast Group and become a standalone company.[17]

An email from Diamond CEO David Preschlack announced on March 20, 2023 that Steve Rosenberg would no longer be the president of Diamond Sports Group; Rosenberg's last day as president of Diamond was March 19. With his departure, Diamond's chief financial officer David DeVoe will take on the role of COO.[18]

References
  1. Mirabella, Lorraine (May 7, 2019). "Sinclair stock soars over sports deal". The Baltimore Sun. Retrieved September 22, 2020.
  2. Littleton, Cynthia (May 3, 2019). "Sinclair Clinches Disney-Regional Sports Networks Deal, Byron Allen Joins as Partner". Variety. Retrieved September 22, 2020.
  3. Hayes, Dade (August 23, 2019). "Disney, Sinclair Broadcast Group, Byron Allen Close Regional Sports Network Deal". Deadline. Retrieved September 22, 2020.
  4. "Sinclair Completes Acquisition of Regional Sports Networks From Disney". The Walt Disney Company. August 23, 2019. Retrieved September 23, 2020.
  5. Bloom, David (4 November 2020). "Sinclair Writes Off $4.2 Billion On Regional Sports Channels Amid Strong Political Advertising". Forbes. Retrieved 7 September 2022.
  6. Novy-Williams, Eben (2020-11-19). "Bally's Buys Sinclair RSN Naming Rights As Part of Sports Betting Push". Sportico.com. Retrieved 2020-11-19.
  7. Balderston, Michael (2021-01-27). "Sinclair, Bally Reveal Bally Sports Rebrand for RSNs". TVTechnology. Archived from the original on 2021-01-27. Retrieved 2021-01-28.
  8. "Farewell, Fox Sports West. Hello, Bally Sports". Los Angeles Times. 2020-11-19. Archived from the original on 2020-11-19. Retrieved 2021-01-28.
  9. "Bally Sports, Coming March 31". YouTube (Fox Sports Midwest). March 18, 2021. Retrieved March 18, 2021.
  10. "Sinclair's Diamond Sports Group Inks NHL Renewal Deal, MLB Lockout Looms". www.mediapost.com. Retrieved 2021-12-04.
  11. "Diamond Sports Announces New Board of Managers". Business Wire. Sinclair Broadcast Group. 2 May 2022. Retrieved 5 January 2023.
  12. Bucholtz, Andrew (2022-08-17). "Bally Sports+ has an official all-markets launch date". Awful Announcing. Retrieved 2022-08-17.
  13. Crupi, Anthony (4 December 2022). "Diamond Sports Removes Sinclair as Operator of Regional Sports Networks". Sportico. Penske Media Corporation. Retrieved 5 January 2023.
  14. Ourand, John (15 February 2023). "Diamond Sports Group not making $140M interest payment". Sports Business Journal. Leaders Group. Retrieved 15 February 2023.
  15. Ourand, John (10 March 2023). "Sports Media: What to expect with Diamond Sports bankruptcy". Sports Business Journal. Leaders Group. Retrieved 10 March 2023.
  16. Bouma, Luke (14 March 2023). "Bally Sports Just Declared Bankruptcy – The Death of RSNs?". Cord Cutters News. Retrieved 14 March 2023.
  17. "Diamond Sports Group Commences Voluntary Chapter 11 Proceedings to Strengthen Balance Sheet". Business Wire (Press release). 14 March 2023. Retrieved 14 March 2023.
  18. Ourand, John (20 March 2023). "Steve Rosenberg out as president of Diamond Sports Group". Sports Business Journal. Leaders Group. Retrieved 20 March 2023.
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