Changes are underway for Diamond Sports’ regional sports networks. According to court documents filed on Tuesday, the company has entered into a naming rights agreement with Flutter-owned FanDuel. This deal will lead to the rebranding of the Bally Sports channels coinciding with the start of the National Hockey League season and the upcoming 2024-2025 National Basketball Association season.
Diamond Sports indicated in the court filing that if it successfully exits bankruptcy protection, FanDuel will become a “long-term naming rights partner.” The agreement grants FanDuel the option to acquire up to 5% equity in the reorganized entity and performance warrants for an additional 5% equity.
However, this agreement is contingent upon court approval. The partnership represents a significant step for Diamond Sports towards emerging from bankruptcy while providing FanDuel, a leading sports betting company by market share, with increased visibility.
The negotiations between Diamond Sports and FanDuel began in February, as stated in the court papers, but the final details were only discussed after agreements with the NBA and NHL were completed. A representative from FanDuel declined to provide additional commentary beyond the filings, and the financial specifics of the agreement were not disclosed.
Diamond Sports characterized FanDuel as an “attractive potential partner” due to the alignment between regional sports networks and the online gaming industry. This latest rebranding marks the third naming for the regional sports networks. Disney was required to divest these networks during its acquisition of Fox Corp.’s assets to obtain regulatory approval. The networks were sold in 2019 to Sinclair, still under the Fox Sports banner. Subsequently, a naming rights agreement was established with Bally’s Corp.
The agreement with Bally’s Corp. concluded earlier this year as part of a settlement between Diamond Sports and Sinclair. Diamond, an independently managed subsidiary of Sinclair, alleged in a lawsuit that Sinclair’s ownership had worsened its issues, though Sinclair denied any wrongdoing.
Having filed for bankruptcy protection last year, Diamond Sports has engaged in ongoing restructuring discussions with the NBA, NHL, and Major League Baseball while striving to resolve its significant debt. The company has expressed intentions to emerge from bankruptcy as early as December, based on financial forecasts.
Throughout the bankruptcy process, several teams from all three leagues have left the networks to explore alternative local viewing arrangements for their fans. Earlier this month, Diamond Sports announced plans to drop all Major League Baseball teams except the Atlanta Braves for the 2025 season, potentially resulting in the exit of 11 MLB teams from Diamond Sports.
In court earlier this month, a Diamond Sports attorney remarked that dropping these teams “is not our preferred path.” Several MLB teams, such as the San Diego Padres and Arizona Diamondbacks, departed the regional sports networks in 2023, prompting MLB to produce local game broadcasts. The league announced it would take the same approach for the Milwaukee Brewers, Cleveland Guardians, and Minnesota Twins for the 2025 season.
Some NBA teams have transitioned to local broadcast stations for local game coverage, while NHL teams like the Dallas Stars and Anaheim Ducks have entered into over-the-top streaming partnerships with Victory+, a sports streaming service owned by Canada-based A Parent Media Co., for local viewing.
