Amazon will partner with Diamond Sports as part of a restructuring agreement as the largest owner of regional sports networks looks to emerge from bankruptcy.
Diamond owns 18 networks under the Bally Sports banner. Those networks have the rights to 37 professional teams: 11 MLB, 15 NBA and 11 NHL.
Diamond Sports has been in Chapter 11 bankruptcy proceedings in the Southern District of Texas since it filed for protection last March. The company said in a late 2021 financial filing that it had debt of $8.67 billion.
The terms of the agreement were announced by Diamond Sports on Wednesday morning. Amazon had no comment. It remains subject to approval by the bankruptcy court.
The agreement with Diamond Sports’ largest creditors allows it to emerge from bankruptcy, continue operations and prevents a total collapse of the regional sports network system where the NBA, NHL and MLB would have to step in to take over production and distribution of most of their teams.
Last season, MLB had to take over production and distribution of the San Diego Padres and Arizona Diamondbacks after Diamond let rights payments to the Padres lapse and was unable to agree to an amended deal with the Diamondbacks.
Under the terms of the restructuring agreement, Amazon will make a minority investment in Diamond and enter into a commercial arrangement to provide access to Diamond’s content via Prime Video.
Customers will be able to access their local team’s content on Prime Video channels where Diamond has rights. Pricing and availability will be announced at a later date. Regional sports content will also remain available on cable and satellite providers.
An attorney for Diamond Sports Group called the agreement a “watershed” moment for the company’s bankruptcy process in a court hearing later Wednesday. But attorneys for MLB and the NBA noted that the leagues had just been made aware of the deal and still had a lot to sift through, a point later echoed by an attorney for the unsecured creditor committee.
An attorney for Diamond assured the bankruptcy judge that it will broadcast nine teams under its portfolio for the entirety of the 2024 MLB season and will pay what it owes those teams under its current contract, while adding that it is in talks with three other teams on broadcasting their games at a reduced price. The attorney did not name the latter three teams, but the reigning World Series champion Texas Rangers are among them.
A hearing between MLB and Diamond Sports Group that had been scheduled for Friday — and was rescheduled from last Wednesday — has been pushed back indefinitely. Diamond previously faced a March deadline to firm up a restructuring plan but says it will provide details for its new arrangement well ahead of that date.
“There’s a lot to take in, a lot to digest,” Judge Chris Lopez said as part of his closing remarks.
Diamond also has an agreement in principle with Sinclair to settle the pending litigation between the companies and the other named defendants. The settlement is supported by Diamond’s creditors that are parties to the RSA.
Sinclair Broadcast Group bought the regional sports networks from The Walt Disney Co. for nearly $10 billion in 2019. Disney was required by the Department of Justice to sell the networks for its acquisition of 21st Century Fox’s film and television assets to be approved.
Even before Sinclair bought the regional networks, the business was in a downturn due to cord-cutting and declines in advertising revenue after entering into exorbitant long-term deals with some teams.
Under an agreement with creditors last year, Diamond Sports Group became a separate company from Sinclair.
As part of the settlement, Sinclair will pay Diamond $495 million and provide ongoing services to support Diamond’s reorganization. The proceeds from the settlement will also pay off some creditors.
“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,” Diamond Sports CEO David Preschlack said in a statement. “We are grateful for the support from Amazon and a group of our largest creditors who clearly believe in the value-creating potential of this business. Diamond’s near-term focus will be on implementing the RSA and emerging from bankruptcy as a going concern for the benefit of our investors, our employees, our team, league and distribution partners, and the millions of fans who will continue to enjoy our broadcasts.”
Diamond recently reached agreements with the NHL and NBA to keep local rights through the end of this season. It remains in discussions with MLB on reworked agreements for the upcoming season, with the next court hearing scheduled for Friday.
ESPN’s Alden Gonzalez and The Associated Press contributed to this report.
ST. PAUL, Minn. — Alex Ovechkin didn’t score for Washington, staying at 889 career goals and six away from breaking Wayne Gretzky’s all-time record.
But Ovechkin did initiate a memorable moment on the ice in Minnesota on Thursday night.
The three-time NHL MVP, who has been in the spotlight for months amid his pursuit of Gretzky’s career goal mark, hustled over toward the tunnel behind the bench after the horn sounded on Washington’s 4-2 loss to make sure all of the Capitals came back on the ice to shake hands with retiring Wild goalie Marc-Andre Fleury. Ovechkin was the first to greet Fleury at center ice as they shared a hug and a laugh.
Fleury, who’s in his 21st and assuredly final season in the league, was on the home bench all night while Filip Gustavsson manned the net.
Ovechkin mentioned to the team in the morning that it would be the last matchup against Fleury, who faced Ovechkin and the Capitals frequently over the first 13 seasons of his career with Pittsburgh. Ovechkin had 28 goals in 47 games against Fleury, his most against any goalie.
“He’s had so many battles with the Caps, with ‘O,'” Washington coach Spencer Carbery said. “Pretty classy to be able to send him off and just say how impressive a career he had.”
“Everyone knows he’s one of the best people of all time in the game, so the little respect we can show him at the end of the game I think goes a long way,” Strome said.
The Wild were impressed by the gesture, even if they weren’t surprised.
“Every team we go to, you see the signs. Everyone loves him, and everyone loves playing against him,” Gustavsson said. “I think no one really would say anything bad about him.”
At some point soon, the Wild probably will find themselves doing their own internal tribute.
“It’s awesome to see. It’s fun for him, and I am happy for him,” defenseman Jonas Brodin said. “He’s a great person and one of the best I have ever played with, so it’s pretty cool. It’s special to have that when you quit hockey someday, that you played with that guy, for sure.”
BUFFALO, N.Y. — The accomplishment was special. The result disappointing.
Pittsburgh Penguins captain Sidney Crosby sat slumped at his locker stall Thursday night focused more on his team’s latest lopsided loss than the personal milestone of breaking an NHL record he shared with Wayne Gretzky for point-per-game consistency.
“It’s tough when you play to win. And obviously it’s a special milestone,” Crosby said following a 7-3 loss to the Buffalo Sabres, inching the Penguins closer to missing the playoffs for a third straight season.
“But you know in a game like that, it’s not really the same. So, yeah, just a tough night. Yeah, tough night.”
With his parents in the Buffalo stands, Crosby provided the Penguins’ lone highlight by scoring 8:49 into the first period to cut the Sabres’ lead to 2-1. Set up in front by Rickard Rackell, Crosby used his right skate to kick the puck onto his stick and in one motion snapped a shot inside the right post.
It was his 26th goal and 80th point of the season in his 72nd game, after missing two with injury. With eight games left in Pittsburgh’s season, Crosby is assured of finishing his 20th NHL season averaging at least a point per outing.
The Penguins captain surpassed the mark first set by Gretzky, who finished all but his 20th and final NHL season in 1998-99 averaging a point a game.
“He’s a tremendous, special player and person,” teammate Bryan Rust said. “There’s a lot of people who can be good for one, two, five years. But to do it for that long, I think is incredibly special.”
What stands out beyond the consistency to coach Mike Sullivan is Crosby’s competitive drive.
“I’ve said it on so many occasions, just his passion for the game and his willingness to put the work in to continue to be at his best. It’s just remarkable,” Sullivan said.
This, after all, is a player who has upped his game since the 4 Nations tournament by combining for nine goals and 22 points in his past 17 outings in a bid to carry the Penguins back into playoff contention.
“I think when you’re in circumstances like this, you find out a lot about people,” Sullivan said. “And I think it exemplifies his leadership.”
Since being selected by Pittsburgh with the No. 1 pick in 2005 draft, Crosby has led the franchise to win three Stanley Cup championships. He’s a two-time NHL regular season MVP and twice won the league’s regular-season points race.
“I think you have to continue to get better and learn, even after thjs long, you’ve got to continue to evolve and adjust,” Crosby said of the keys to his consistency. “But I’ve been pretty lucky to play with some great players over that 20 years. And I think that’s a big part of it, too.”
Crosby’s feat comes as Washington’s Alex Ovechkin is five goals from breaking Gretzky’s NHL career record of 894 career goals.
It shouldn’t have been a surprise that Crosby scored against Buffalo. He has made a career of producing against the non-division rivals in leading all active players with 86 points (30 goals, 56 assists) in 61 career games against the Sabres.
Loss aside, the consolation for Crosby was having his parents on hand to share yet another memorable moment in a career that included him scoring the gold-medal clinching goal in a 3-2 overtime win over the U.S. at the 2010 Vancouver Games.
“They’ve been to a lot of games over the years and they’ve sacrificed so much and been so, so supportive,” Crosby said. “To have them here for a moment like this is really special. And it’s the least I could do.”
The fine, announced Thursday by the NHL’s Department of Player Safety, is the maximum allowable under the collective bargaining agreement with the players’ union. The money goes to the Players’ Emergency Assistance Fund.
The incident occurred at 13:58 of the second period, with Callahan assessed a double minor penalty for high sticking. Callahan and Harkins were assessed penalties for fighting at the 4:12 mark of the third period.
Callahan, 25, has played 14 games and has zero points, a minus-4 rating, 11 blocks and five hits in averaging 13:32 of ice time. He earned his first penalty minutes of the season Wednesday.
