A Texas judge on Thursday approved a reorganization plan for the company that broadcasts Cardinals and Blues games that would end the firm鈥檚 bankruptcy case and save local teams from broadcast limbo.
U.S. Bankruptcy Judge Christopher Lopez said the plan, which allows the Cardinals and Blues to continue their relationship with Diamond Sports Group, would save jobs and help fans.
鈥淗ard-core fans are hard-core fans, and they want to see their teams play,鈥 he said at the hearing. 鈥淚t鈥檚 just as much a part of the American experience as anything else.鈥
This result was not always certain, or even probable.
For 20 months, three sports leagues and various individual teams fought over what would happen to their essential broadcasting contracts as Diamond tried to find a solution to business woes stemming from the rise of television streaming and the corresponding decline of cable viewership.
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Diamond eventually reached deals with the National Hockey League and National Basketball Association to continue broadcasting the current season through its Bally Sports regional networks but signaled it could drop broadcasts for baseball teams like the Cardinals if a deal couldn鈥檛 be reached.
Then last week, the Cardinals announced they would stay with Diamond, via Bally 鈥 now called FanDuel Sports Network 鈥 in a multi-year deal that includes a new streaming product. FanDuel announced Wednesday that it would make games available on Amazon Prime Video for an additional cost.
Brian Herman, a lawyer for Diamond, said the company鈥檚 move to a model with cable and streaming options would help preserve the company for the future.
鈥淲e are here today to reorganize this business, and we are going to reorganize this business,鈥 he said, calling their emergence from bankruptcy 鈥渘othing short of a miracle.鈥
Diamond filed for bankruptcy in March 2023, raising questions about what would happen to the 15 NBA teams, 14 NHL teams and 14 MLB teams under its umbrella that depended on Diamond to air their games, and paid them for the right to do so.
The bankruptcy, while expected, accelerated conversations about new distribution models. The MLB, for example, beefed up its office with broadcast executives and game-planning in case of Diamond鈥檚 demise, and in anticipation of launching an MLB-owned broadcast entity.
Fans and players stand for the national anthem in a sparsely-filled Busch Stadium as the 最新杏吧原创 Cardinals face the San Diego Padres on Thursday, Aug. 29, 2024 at Busch Stadium.
鈥淥ver the long term, we will reimagine our distribution model to address the changing media climate and ultimately reach an even larger number of fans,鈥 the league said in a statement at the time.
Diamond reached deals to continue broadcasting MLB, NBA and NHL games through the 2023 season.
But the ability of Diamond to emerge from bankruptcy came into question in May 2023 when Comcast abruptly dropped Bally at the beginning of the baseball season, annoying fans and angering the league.
Bally eventually restored its deal with the large cable provider, and the following year, the Cardinals and other MLB teams signed on for the 2024 season. The Blues and other NHL teams followed suit for 2024-2025.
Last month, Diamond announced that it had reached an agreement with the sports betting giant FanDuel to rename the network. The terms were not disclosed, but the deal allowed FanDuel to purchase up to 5% of equity in the company.
MLB attorneys cried foul, saying they鈥檇 been left in the dark about the deal.
Still, Judge Lopez approved it, and weeks later, the Cardinals joined FanDuel Sports Network, replacing their previous 15-year, $1.1 billion deal with Bally.
The new platform eliminates 鈥渂lackouts鈥 for local viewers found on other networks that prevent fans from watching games while they鈥檙e in certain geographic areas.
The announcement didn鈥檛 immediately assuage MLB attorneys or the Atlanta Braves, which filed objections to the Diamond restructuring plan. They said they had 鈥済rave concerns鈥 Diamond would 鈥渇ind themselves once again in financial distress and/or bankruptcy court in the near future.鈥
But, on Wednesday, Diamond announced a partnership with streaming giant Amazon Prime to allow subscribers access to the FanDuel network.
That same day, MLB and Braves withdrew their objections, paving the way for a largely uncontested hearing Thursday in Houston bankruptcy court.
Scores of lawyers gathered in the courtroom and online to praise the judge, accountants, attorneys, teams and Diamond employees who shepherded the company through the process.
鈥淭oday is a landmark day for Diamond,鈥 CEO David Preschlack said in a statement, 鈥渁s we embark on a new path for our business.鈥
