Diamond Sports Group is hoping to rebrand its Bally Sports Midwest network under a new naming rights agreement with sports betting giant FanDuel, a move that could provide some financial relief to the company as it reorganizes.
Diamond 鈥 the parent company of Cardinals and Blues regional telecaster Bally Sports Midwest 鈥 has been in bankruptcy proceedings since March 2023, a result of dwindling cable viewership over the years. Recently, the company signaled that it could drop broadcasts for the Cardinals and 10 other teams.
In documents filed with a Houston bankruptcy court Monday, Diamond asks the court to approve the deal, which would rebrand its regional sports networks with the FanDuel name.
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The agreement would lock in a new naming rights partnership for the 2024-25 National Hockey League and National Basketball Association seasons 鈥 and beyond if Diamond successfully emerges from bankruptcy, the filings state.
Diamond began searching for a new naming rights partner in February as the naming-rights deal with Bally鈥檚 Corp. was set to expire at the end of the Major League Baseball season.
Eric Ratchman, Diamond president of distribution and business development, said Diamond found FanDuel to be the strongest partner candidate due to the 鈥渉igh alignment鈥 between Bally鈥檚 Sports broadcasting efforts and FanDuels鈥 online gaming business and target customers.
After several months of negotiations with FanDuel, the broadcaster said it believes the rebrand will provide incremental revenue and position the company well for future growth, according to court documents.
鈥淚 believe that rebranding the RSNs (regional sports networks) now 鈥 after the end of the MLB regular season and at the beginning of the 2024-2025 NBA and NHL seasons 鈥 is therefore not only an important component of the (Diamond Sports Group鈥檚) efforts to consummate a value-maximizing reorganization, but also a critical near-term business need for smoothly transitioning branding partners and minimizing disruption to sports fans,鈥 Ratchman said in a declaration of support filed with the court.
Terms of the deal were not publicly disclosed, but Diamond said, pending court approval of its reorganization plan, it would allow FanDuel to purchase up to 5% of the equity in the company.
The company is asking the judge to approve the deal no later than Oct. 21. A final confirmation hearing for Diamond鈥檚 bankruptcy case is scheduled for Nov. 14.
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