Sinclair(Bally's Sport) nearing a deal for NBA streaming rights for direct to consumer offering

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update - sort of. as of today, no new hearing dates have been set or reported in the Diamond Sports bankruptcy court proceedings. still in limbo.

in a related topic, another NBA team is dumping the RSN model. according to The Athletic, The Portland Trail Blazers are leaving ROOT sports. the Blazers issued a statement that an announcement on the future TV home of the Blazers would be made soon.

Phoenix and Utah have left their local RSN's for over-the-air channels and a direct-to-consumer streaming option. The New Orleans Pelicans will also be dumping their RSN for the over-the-air and DTC streaming model. New Orleans was on a Diamond/Bally RSN.
 

www.minnesotasportsfan.com

MN Local TV Stations in Contact with Twins, Wild and Timberwolves

It's been a long time since Minnesota professional sports games were regularly broadcast on over-the-air local TV... but that could change.
www.minnesotasportsfan.com www.minnesotasportsfan.com

Darren Wolfson from KSTP 5 has this to say.

“Let’s just say, multiple TV outlets in town have had conversations with all three organizations (Timberwolves, Wild, Twins). If that judge, at some point, declares that Diamond Sports is no longer an entity, that Diamond Sports is no longer a thing, it is going to be a crazy two to three week stretch.
There are going to be a lot of meetings, a lot of phone calls, a lot of people here in town interested in carrying Wild and Wolves games, put it that way. Because, Twins, their season is almost over. We have clarity on what the Twins’ TV situation will look like for the rest of this season.
But, there’s still some open-endedness on, ‘what does the Wild TV situation look like?’; ‘what does the Wolves TV situation look like?’. So, I’m telling you, like we need to wait on on the judge, but let’s just say… there’s been a good amount of conversations. And multiple TV outlets in town are ready to strike, if that judge says, ‘hey Diamond Sports, you’re done, you’re no longer a thing’.”
Darren Wolfson – Mackey & Judd (SKOR North)
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The whole point of that new venture seems to be to establish a monopoly. Judge agrees

"The launch of Venu Sports will be delayed after a federal judge granted FuboTV's motion for a preliminary injunction against the planned sports streaming venture by ESPN, Fox and Warner Bros. Discovery.

United States District Judge Margaret M. Garnett in the Southern District of New York said in her 69-page ruling Friday that Fubo was likely to be successful in proving that the joint venture would violate antitrust laws and that Fubo and consumers would "face irreparable harm in the absence of an injunction."..
FuboTV filed the lawsuit two weeks after ESPN, Fox, Warner Bros. Discovery and Hulu announced in February their plans to offer a sports streaming service.

In its filing, FuboTV said it has tried for years to offer a sports-only streaming service but has been prevented from doing so because ESPN, Fox and Warner Bros. Discovery have imposed bundling requirements on FuboTV that it says forces "Fubo to spend hundreds of millions of dollars to license and broadcast content that its customers do not want or need."..
www.espn.com

Judge blocks ESPN, Fox, WB streaming venture

The launch of Venu Sports will be delayed after a federal judge granted FuboTV's motion for a preliminary injunction against the planned sports streaming venture by ESPN, Fox and Warner Bros. Discovery.
www.espn.com www.espn.com
 

as I noted in the earlier post #601, several NBA teams have moved to a combination of over-the-air "free" TV and a streaming option.

I do find the "multiple" TV outlets thing interesting. the network TV stations (WCCO, KSTP, KARE) would have to pre-empt or delay their network programs to carry the Wild or Wolves. I just don't see that happening.

so the most likely stations to carry the Wild or the Wolves - IMHO - would be WFTC (Fox9+), KSTC (45), WUCW (CW).
 

short ornery norwegian said:
as I noted in the earlier post #601, several NBA teams have moved to a combination of over-the-air "free" TV and a streaming option.

I do find the "multiple" TV outlets thing interesting. the network TV stations (WCCO, KSTP, KARE) would have to pre-empt or delay their network programs to carry the Wild or Wolves. I just don't see that happening.

so the most likely stations to carry the Wild or the Wolves - IMHO - would be WFTC (Fox9+), KSTC (45), WUCW (CW).
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I could see KMSP/FOX (CH 9) combine with a sister station WFTC (FOX9+) in some form.a Same with KSTP/KSTC.

Only a few of the games would be on the Network station, but they could provide some occasional windows on weekend afternoons or even preempt Prime Time once in a while when they are just showing a summer rerun.
 


still no new hearing dates scheduled for Diamond bankruptcy case. this is going to run into the NBA and NHL seasons.
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in other news, saw this on Cord-Cutters News (a website that covers streaming TV news)
Direct TV is making a new push for "a la carte" TV.

Today DIRECTV came out in support of changing how people pay for and watch TV. With this DIRECTV now wants to offer smaller packages that are more flexible and cheaper. Yet there are some problems to making that a reality.

The main problem here is that content owners like Disney, Warner Bros. Discovery, and NBCUniversal are unwilling to let providers like DIRECTV make changes to their packages.

“Unfortunately, while DTC offerings have evolved, pay TV packages have remained largely unchanged. Instead of allowing distributors like DIRECTV to also develop smaller, more tailored packages at prices that reflect the value they get from the content, programmers have continued to impose and enforce strict bundling requirements through exorbitant minimum penetration rates – the minimum proportion of a distributor’s subscribers required to access a channel. These antiquated requirements force pay TV customers to subscribe to many channels they may not watch, which have yielded ‘fat bundles.’ At the same time, programmers have reserved flexible genre-based offerings solely for themselves, eroding the price-value proposition for pay TV customers by shifting the best programming to DTC services while raising programming fees on pay TV.” DIRECTV said in a statement today.

With this DIRECTV says it and other cable TV providers are losing subscribers “because of our collective failure to evolve to meet consumer preferences, not due to external forces.” To help with that DIRECTV is proposing several changes.

Here is everything that DIRECTV is proposing happen:
  • Flexible Packages. Consumers want the ability to choose from genre-based programming without piecing together and purchasing an extensive lineup of channels that don’t meet their desires.
  • Lower-Priced Alternatives. Consumers want price points closer to the DTC options they are familiar with and the ability to pay for all their programming through one platform.
  • Aggregated Experience. Consumers want access to their favorite shows and sports and the ability to discover new content in one complete experience – live ‘linear’ TV or on-demand content from DIRECTV or a third party – instead of through numerous disjointed entry points while managing multiple individual subscriptions to those products.
To achieve any of these goals DIRECTV needs content owners to agree to these changes and so far they have not been willing to make these changes.

(note - Direct TV's current contract with ESPN is up for renewal. those negotiations could be interesting....this could also be more fallout from the proposed Venu skinny sports bundle.)
 

we have a Diamond/Bally update - sort of.

from Evan Drellich in The Athletic:

Regardless of whether it successfully emerges from bankruptcy, Diamond Sports Group, which broadcasts the Bally-branded regional sports networks, is now promising it will operate through the 2024-25 NBA and NHL seasons.

Diamond Sports on Friday said it has reached agreements with both leagues and that as part of the basketball deal, the broadcaster is stepping away from contracts with two teams: the Dallas Mavericks and New Orleans Pelicans.

The deals need to be approved by a federal bankruptcy judge, with a hearing scheduled for Sept. 3. Contract terms in both leagues have also been modified, presumably with some rights-fee payment reductions, but no specific dollar figures were revealed in court filings Friday.

Looming over everything, though, is still the question of Diamond’s long-term viability, and when it will be addressed.

For Diamond to emerge from bankruptcy, it needs to hold a confirmation hearing where a judge approves a plan. One was scheduled for late July but was pushed back when Diamond said it needed to make significant changes to its plan. A new date has yet to be announced. (Diamond on Friday proposed a new arrangement with some of its key debtholders that positioned Oct. 1 and Nov. 15 as significant procedural deadlines.)

**according to Sportico, under the new agreements, the rights fees paid to teams will be 30-40% lower for NBA teams and roughly 20% lower for NHL teams**
 
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Sources: Amazon pulls $115M offer to Diamond​


Amazon recently pulled its eight-month-old offer to infuse Diamond Sports Group with $115M in cash, multiple sources told SBJ, a development that has delayed but seemingly not rebuffed Diamond's plan to reemerge from bankruptcy proceedings.

Indications are Diamond, which struck a deal Friday with the NBA and NHL to broadcast games locally this season for 22 teams, still has enough investors to submit a viable reorganization plan to U.S. Bankruptcy Judge Christopher Lopez in the coming weeks. In January, Diamond acknowledged receiving $450M from creditors to help it remain solvent, and Diamond's 13 current NBA teams were informed Friday at a joint session that the company is still a full-go with its plan to escape bankruptcy.
www.sportsbusinessjournal.com

Sources: Amazon pulls $115M offer to Diamond

Amazon recently pulled its eight-month-old offer to infuse Diamond Sports Group with $115M in cash, multiple sources told SBJ, a development that has delayed but seemingly not rebuffed Diamond's plan to reemerge from bankruptcy proceedings.
www.sportsbusinessjournal.com www.sportsbusinessjournal.com

My god. Will Diamond please go out of business and do it now.
 

and this from Sports Media Watch:

Even with Diamond’s assurances that they remain on track to emerge from bankruptcy, there remains worry from NBA franchises that Diamond may miss payments. Citing an NBA team executive, SBJ says, “[w]e’re not worried about the first payment. We’re more worried about the last payment.” Diamond’s first rights fees are due to hit in October, coinciding with the beginning of the NBA season.

there is a hearing in bankruptcy court scheduled for Sept 3, but that is being held to review a request from Diamond to end its broadcast agreements with the Dallas Mavericks and New Orleans Pelicans - as noted in post #607.

still no dates set for the big hearing to consider whether Diamond is allowed to emerge from bankruptcy.

Diamond may claim that they don't need the Amazon money - but not that long ago, the Amazon deal was being cited as one of the reasons why Diamond would be able to operate as a viable business going forward. now, they don't need it?
 




hey - another dispute between a Network and a provider - this time it's Disney (ABC/ESPN) and Direct TV. If a deal is not reached by Sunday, Disney channels could be blacked out on Direct TV and Direct TV Stream - impacting sports fans.

this writeup from OutKick:

Disney and DirecTV are locked in a carriage dispute that could cost cable viewers the start of the NFL season.

If the new sides do not reach an agreement by Sept. 1, 11 million subscribers will lose access to ESPN. This means they won't be able to watch the season premiere of Monday Night Football on Sept. 7, featuring Aaron Rodgers' Jets vs. the 49ers.

College football fans would be just as agitated.

DirecTV subscribers would also lose the ability to watch ESPN's broadcasts of USC vs. LSU on Sunday, Sept. 1 and Boston College vs. Florida State at 7:30 p.m. on Monday, Sept. 2.

For those expecting a deal to quickly develop, remember that a carriage dispute between Disney and Charter Communications last year at this time led to a nearly two-week blackout and was not resolved until hours before the Monday Night Football opener.

DirecTV chief content officer Rob Thun says he wants to offer "smaller, more tailored packages at prices that reflect" value to consumers – noting that ESPN charges subscribers a $9.42 per sub per month (the highest in cable) if the channel is included in their cable package, whether they watch ESPN or not.
 

***update*** ESPN and some ABC stations are now blacked out on DirecTV and DirecTV Stream.
from the AP:

ESPN has gone off the air on a major carrier for the second straight year during the U.S. Open tennis tournament and in the midst of the first full weekend of college football.

Disney Entertainment channels went dark on DirecTV Sunday night after the sides were unable to reach a new carriage agreement.

The move angered some sports fans, who posted their displeasure on social media. And the U.S. Tennis Association wasn’t pleased with another carriage dispute.

ESPN was showing the fourth round of the U.S. Open when it went off the air on DirecTV at 7:20 p.m. EDT.

It also happened 10 minutes before the start of the college football game between No. 13 LSU and 23rd-ranked Southern California in Las Vegas.

DirecTV has 11.3 million subscribers, according to Leichtman Research Group, making it the nation’s third-largest pay TV provider.

Distributors and subscribers would like to see a model where they can buy channels a la carte instead of subscribing to a bundling package.

------
(my thoughts) the traditional cable TV industry is slowly becoming extinct as viewers move to streaming, but the cable TV and satellite companies are going to go down kicking and screaming.
 

Hearing held in Bankruptcy court on Tuesday. hearing was held to review Diamond/Bally's new agreements with its NHL and NBA teams, and to approve Diamond ending its deals with New Orleans and Dallas in the NBA. details from Sportico:

As expected, Judge Lopez signed off on Diamond’s arrangements with the NBA and NHL, before going on to OK the company’s divorce from the Pelicans and Mavericks. He then agreed to preside over a status conference in the first week of October, one which should end with a firm date for a final confirmation hearing.
--still no date for the final confirmation hearing, but it looks like November at the earliest.

As part of an emergency session held Tuesday afternoon in the U.S. Bankruptcy Court for the Southern District of Texas, Diamond counsel Joe Graham asked that a twice-delayed confirmation hearing be rescheduled for early- to mid-November. Initially slated for June 18, the hearing represents what amounts to the final legal milestone in Diamond’s long journey out of bankruptcy.
--while the NBA and NHL have new deals covering the 2024-25 seasons, MLB remains the most vocal critic of Diamond--

MLB representative James Bromley suggested that the company is burning through its cash reserves at an unsustainable clip, as it has earmarked $215 million of the $495 million it collected in Sinclair settlement proceeds as a paydown to its first-lien lenders. Bromley also said that Amazon had pulled its $115 million cash infusion off the table, a development that puts another sizable dent in Diamond’s war chest.
Bromley concluded his presentation by suggesting that baseball isn’t a big believer in the company’s future prospects. “While it is great that NBA and NHL have taken care of their seasons … we have to keep in mind that what is being described to the court is a Band-Aid at this point.”

The judge also said that he took MLB’s concerns “very seriously” before approving Diamond’s proposed adequate-protection package.

----MLB's beef is that - with the final hearing being delayed again - baseball teams will go into the off-season not knowing whether Diamond will emerge from bankruptcy or not. But reading between the tea leaves, the Judge seems to be strongly hinting that he will rule in Diamond's favor.
 




this seems to be a growing trend. several NBA teams have adopted this model - putting games on over-the-air TV stations, which may or may not be part of cable bundles. and then offering a direct-to-consumer streaming option for fans who live out of market or have cut the cord on cable TV.

BTW - realize I never followed up on the Disney vs DirecTV settlement. the two sides came to an agreement and DirecTV got a lot of what it was asking for. DirecTV will have the right to include Disney Channels including ESPN in smaller targeted "skinny bundles" such as sports, family entertainment and so forth. But - also in the deal, DirecTV and DirecTV Stream will have the option of including Disney+ and ESPN+ in its packages, and will have the option of including the new stand-along ESPN "Flagship" DTC Steaming service when that rolls out sometime next year.

what does ESPN get out of this? as streaming services push ad-supported packages, the number of potential viewers will impact ad rates and revenue. so the more people watching ads on Disney channels is good for Disney.

so the traditional cable bundle continues to erode.
 


I just keep hoping Bally's goes out of business, their business model is beyond annoying.
 

Wally said:
I just keep hoping Bally's goes out of business, their business model is beyond annoying.
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reading the tea leaves, most of the sports business sites I follow now tend to agree that the Judge is likely to approve Diamond to move out of bankruptcy.

Diamond has negotiated new agreements with all of the major distributors - Comcast, Charter, DirecTV, etc. It has ongoing agreements with the NBA and NHL. most of the major creditors are reportedly onboard. the one sticking point is MLB.

so the question becomes, will the Judge rule against Diamond based on MLB's objections? the legal and sports business observers feel that is unlikely - that the Judge is inclined to give Diamond an opportunity to prove that it can survive as an ongoing entity.

Update - Status Conference in Bankruptcy Court scheduled on Wednesday, Oct. 2nd. No dates set yet for final hearing.
 

Whoa! Big news - Diamond Sports dropping All of its MLB deals except Atlanta.

From Sportico:

Diamond Sports Group on Wednesday told the U.S. Bankruptcy Court for the Southern District of Texas that it has informed its remaining MLB partners that it plans to void its legacy media contracts, with the exception of a standalone rights deal with the Atlanta Braves.

Speaking at a virtual hearing in front of Judge Christopher Lopez, Diamond counsel Andrew Goldman revealed that the owner of the Bally Sports-branded RSNs expects to cut ties with what amounts to eight MLB clubs, should it successfully emerge from bankruptcy.

“The debtors are assuming a single telecast agreement, that of the Atlanta Braves,” Goldman said, in a nod to an amended re-organization plan that had landed on the docket shortly before Wednesday’s hearing got underway. “All of Major League Baseball’s other agreements will be rejected under the plan.”

Diamond’s plan to exit the bulk of its MLB commitments will free eight teams from their legacy in-market rights deals: the Cincinnati Reds, Detroit Tigers, Kansas City Royals, Los Angeles Angels, Miami Marlins, Milwaukee Brewers, St. Louis Cardinals and Tampa Bay Rays. The company’s contracts with three other clubs—the Cleveland Guardians, Minnesota Twins and Texas Rangers—expired at the end of September.

Goldman said Diamond’s decision to cut its MLB partners loose will allow each club to “begin to make plans, if they haven’t already, for broadcasting the ’25 season.” He went on to hedge a bit, stating that rejecting the agreements “is not our preferred path,” before going on to say that the amended plan “puts the decision in the clubs’ hands.”

As MLB would much prefer to take control over its streaming destiny, it’s unlikely that any of the eight impacted franchises will elect to extend their relationship with Diamond for yet another season of uncertainty. Upon breaking with their local TV partners, the teams will “be free to enter into whatever alternative arrangements for next year they see fit,” Goldman said.

MLB counsel objected that the league had been given “no information by the debtors” in advance of Wednesday’s hearing. “We’ve had no opportunity to review [the materials], and now we’re in front of the court and being asked to make our comments,” attorney James Bromley said. “The idea that we’re supposed to be able to turn on a dime … is simply inconsistent with reality.”

Bromley went on to say that he was advised of the “Braves-only plan” just an hour and 15 minutes before the hearing.

Before dismissing the attorneys, Judge Lopez scheduled a follow-up session for Oct. 9. A final confirmation hearing is expected to take place on Nov. 14.
 

Update - MN Twins President says new TV deal could be announced in a couple of weeks. From the Strib:

The Twins’ one-year contract with Diamond Sports Group, the parent company of Bally Sports North, expired at the end of the season. St. Peter said a resolution for the Twins’ TV contract could come within the next few weeks.

“We’re working very diligently on trying to finalize what that looks like for 2025 and beyond. I’m excited about the prospects of that,” he said. “I certainly believe there will be widespread access for Twins baseball on both radio and television, both through what I would call a traditional cable/satellite distribution model, but maybe more importantly in the environment we’re in, a direct-to-consumer or streaming option. More on that to come.

“I would guess it’ll come fairly soon, perhaps as soon as the next couple of weeks. I think that will be a good news story for Twins fans across the region.”
 

This all be mean the Twins are back on over the air tv. thank god. No more Bally Sports.
 

gophersfan said:
This all be mean the Twins are back on over the air tv. thank god. No more Bally Sports.
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I wouldn't assume that. At least not that all/majority of the games will be over the air.
 

howeda7 said:
I wouldn't assume that. At least not that all/majority of the games will be over the air.
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I should say some will be on apple tv or the other streaming they have on Sunday. But a majority of the games will be on over the air and on FS1 and Fox. Most will need a tv anttena.

It would not suprise me if Fox 9+ or KSTC or The CW WUCW get the games. I would rule out KSTC as i don't think they want to get rid of there 9 pm newscast.
 

gophersfan said:
I should say some will be on apple tv or the other streaming they have on Sunday. But a majority of the games will be on over the air and on FS1 and Fox. Most will need a tv anttena.
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What's your source on that? FS1 is cable not over the air. And I haven't seen anything about the majority of the games going to Fox 9.

Even if they do go over the air for most games, I expect it would not be one of the big 4 stations, but one of their digital subs (channel 29, 45 etc.) Fox Corp owns Fox 9, they wouldn't sign off on being preempted 150 times/year most likely.
 

details on announcement - from the Strib:

The Twins announced they will have their TV broadcasts produced and distributed by the league next season. MLB handled the broadcasts for the Arizona Diamondbacks, Colorado Rockies and San Diego Padres this year, which included availability on cable and satellite providers along with a direct-to-consumer streaming option.

The announcement ends the Twins’ relationship with Diamond Sports Group, Bally Sports North’s parent company, after their contract expired following their season.

For the three teams MLB produced this year, games could be streamed locally for $99.99 per season ($19.99 per month) with no blackouts.

The Cleveland Guardians and Milwaukee Brewers are joining the Twins for MLB-produced broadcasts next year, and the Texas Rangers announced they are splitting with Diamond Sports.

MLB boasted in its announcement that Twins broadcasts reached 1.08 million homes through Bally Sports North last year, and the new agreement will allow them to expand to an estimated 4.4 million homes. The Twins are expected to receive less money through their new TV deal, but it should lead to reaching more fans.

At the All-Star Game, MLB Commissioner Rob Manfred said the Padres were approaching 40,000 digital subscribers.
 

and this from MLB:

Local games produced by MLB last year included special features normally associated with nationally televised games, including Ump Cam, live look-ins to the MLB Replay Operations Center, Wire Cam, on-field locations for pregame and postgame, new RF camera with a shallow depth-of-field look, and increased access like in-game interviews with players.

“In addition to expanding reach, Major League Baseball is utilizing resources to provide fans with an outstanding production that features new technology, improved picture quality and better access to the game and players,” said Billy Chambers, MLB Executive Vice President, Local Media.

More information about where and how fans can watch will be made available closer to the 2025 season.
 

at this point, we just don't know for sure. people are making assumptions that the games will be available on cable systems or satellite TV - but that could mean that - for instance - the games will be shown on a Twin Cities over-the-air TV station that is also available on cable TV or satellite systems.

I live in SW MN and we get the Twin Cities TV stations on our local municipal cable system. It depends on where you live and what your Designated Market Area (DMA) is. FWIW, our cable system also picks up some stations from the Sioux Falls SD DMA, because people like to get the news and weather from Sioux Falls.

and of course, whether you subscribe to cable or not, the streaming option will now be available with no blackouts. so for me, when the Twins are on ESPN+, I will be able to watch them. previously, they were blacked out on ESPN+ because Bally had exclusive rights.
 

short ornery norwegian said:
at this point, we just don't know for sure. people are making assumptions that the games will be available on cable systems or satellite TV - but that could mean that - for instance - the games will be shown on a Twin Cities over-the-air TV station that is also available on cable TV or satellite systems.

I live in SW MN and we get the Twin Cities TV stations on our local municipal cable system. It depends on where you live and what your Designated Market Area (DMA) is. FWIW, our cable system also picks up some stations from the Sioux Falls SD DMA, because people like to get the news and weather from Sioux Falls.

and of course, whether you subscribe to cable or not, the streaming option will now be available with no blackouts. so for me, when the Twins are on ESPN+, I will be able to watch them. previously, they were blacked out on ESPN+ because Bally had exclusive rights.
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Since they are modeling after SD/AZ/Colorado, it's very likely they will just negotiate direct clearance for a channel on DirecTV/Cable as those teams did. Hopefully they will also add a one game/week over the air package. But I highly doubt they will put all their games on an over the air channel as it would massively undercut getting anyone to subscribe.
 

some Diamond/Bally news:

Diamond Sports has officially announced a naming rights deal with FanDuel - contingent on Diamond emerging from bankruptcy protection. the naming right agreement gives FanDuel the right to buy up to 5% of equity in the re-organized company. The agreement is subject to court approval.

financial terms of the agreement were not announced.

a final bankruptcy court hearing is scheduled for mid-November. if the court signs off, Diamond hopes to emerge from bankruptcy in December.

barring something going wrong, it appears we will be watching the Wolves and Wild on FanDuel Sports North this winter. formerly known as Bally Sports North. Formerly known as Fox Sports North.....
 

short ornery norwegian said:
some Diamond/Bally news:

Diamond Sports has officially announced a naming rights deal with FanDuel - contingent on Diamond emerging from bankruptcy protection. the naming right agreement gives FanDuel the right to buy up to 5% of equity in the re-organized company. The agreement is subject to court approval.

financial terms of the agreement were not announced.

a final bankruptcy court hearing is scheduled for mid-November. if the court signs off, Diamond hopes to emerge from bankruptcy in December.

barring something going wrong, it appears we will be watching the Wolves and Wild on FanDuel Sports North this winter. formerly known as Bally Sports North. Formerly known as Fox Sports North.....
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Formally known as Midwest Sports Channel…
 

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