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Diamond Sports Group Requests Extension in Ch. 11 Reorganization

“Navigating these choppy waters requires discussions with, and cooperation from, many parties….”

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Bally Sports Microphone
Courtesy: Chris Coduto, Getty Images

Diamond Sports Group is in the midst of waiting to discover whether or not its request for an extension to file a restructuring plan under Chapter 11 bankruptcy will be approved by a U.S. bankruptcy court, a decision that could prove pivotal in the survival of the Sinclair subsidiary. The entity previously declared bankruptcy in March 2023 after it threatened the proposition to Major League Baseball as it implored the league to grant it expanded direct-to-consumer (DTC) broadcast rights. MLB Commissioner Robert D. Manfred Jr. refused to acquiesce to Diamond’s demands and instituted a local media department, headed by Billy Chambers, set to take over regional broadcast responsibilities if Diamond decided to selectively reject existing rights contracts.

Diamond previously received an extension to file a restructuring plan on Sept. 30 and enlisted the help of a mediator leading up to that time. The company now hopes to be able to file that plan on Nov. 29, which would give the entity an additional two months to compile and receive feedback on a potential resolution. At the moment, creditors are deliberating the best path forward to reorganize itself amid over $8 billion in debt, largely due to its acquisition of regional sports networks from The Walt Disney Company in an antitrust-related divestiture outlined by the U.S. Department of Justice in 2019.

“The debtors’ Chapter 11 cases are tremendously complex and are occurring while the cable industry is rapidly changing due to subscribers’ persistent ‘cord cutting’ as they move away from traditional cable and satellite multichannel video distributors,” the company said in a court filing. “Navigating these choppy waters requires discussions with, and cooperation from, many parties, including multiple creditor groups, sports leagues, teams and MVPDs.”

As the MLB season continued, Diamond terminated its agreements with the San Diego Padres and Arizona Diamondbacks, leading MLB to assume control over those media rights. With seasons for both the National Hockey League and National Basketball Association quickly approaching, both leagues are reportedly in discussions with the outlet. While there were reports about the leagues agreeing to a deal that would result in less remuneration doled out to its teams, no such compromise has been reached. John Ourand of Sports Business Journal reports that if Diamond is able to emerge from its bankruptcy, both leagues would expect those rights fees to be slashed on a team-by-team basis.

Diamond recently came to terms on a one-year rights renewal with DIRECTV, ensuring that the Bally Sports-branded regional sports networks stay on the air for the next 12 months. DIRECTV had a provision in its existing contract that would have allowed it to renegotiate the RSN deal, but it decided to neglect the use of that so it would not have to renegotiate Sinclair local broadcast channels as well.

The subsidiary’s deal with Charter Communications expires on Feb. 29, which could end up being a monumental negotiation based on how the next several months go for the company. Diamond is reportedly in active negotiations with Comcast to renew that carriage agreement, which comes shortly after a public strife between Charter and The Walt Disney Company that resulted in somewhat of a stalemate.

Through it all, Diamond is suing Sinclair, its parent company, alleging that it received more than $1.5 billion due to misconduct. Some of the claims brought forth by Diamond relate to the fraudulent transfer of assets, breach of contract and unjust enrichment, practices that it believes have harmed its creditors. In response, Sinclair denied these allegations and stated that it believes that Diamond will not emerge from its ongoing bankruptcy.

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Pat McAfee Calls Out Roger Goodell For Not Appearing on His Show

“Hey Rog? Don’t be scared, Rog. Put your big boy pants on. It’ll be good, Rog.”

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Pat McAfee

Pat McAfee still wants a “white whale” guest on his show — and it’s becoming harder and harder for that guest to resist an interview feasibly.

On today’s The Pat McAfee Show, McAfee mentioned that NBA Commissioner Adam Silver will appear on the program on the Dec. 6 episode, crediting ESPN for making it possible. McAfee then rifles off other commissioners that have appeared on his show, including NHL commish Gary Bettman and SEC commissioner Greg Sankey, and mentions that MLS commissioner Don Garber was interested in coming on the show.

Notably, three of these four leagues mentioned currently maintain a broadcasting relationship with ESPN, with the fourth (MLS) previously having one before leaving for the bosom of Apple TV+.

One league partner’s commissioner who hasn’t appeared is Roger Goodell, the NFL’s controversial commish who rarely makes media appearances outside of the NFL sphere. McAfee has long desired an interview with Goodell and called out to the commissioner personally to come on — as only he can.

“Hey Rog? Don’t be scared, Rog,” McAfee said. “Put your big boy pants on. It’ll be good, Rog.”

Among the crew egging Goodell on was New York Jets QB Aaron Rodgers, who was in the studio with McAfee and gang. The QB hasn’t been one to mince words lately and seemed more than willing to join in on the Goodell teasing to bring him on his friend’s show.

Should the crew plus Rodgers be together to speak with Goodell, it could create an interesting dichotomy for Goodell. One outspoken current player and potentially multiple former players (McAfee, along with former Colts teammate Darius Butler and Rodgers’ former Packers teammate A.J. Hawk) would provide a unique interview experience for Goodell, who is used to very controlled, one-on-one interviews with more muted individuals on the other side.

For the record, McAfee and company also pointed out that MLB Commissioner Rob Manfred hasn’t appeared either, but the guys don’t seem too torn up about it.

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NBC Won’t Broadcast XFL/USFL After Merger

“We wish them success with the new league and their new partners.”

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NBC Sports broadcasted USFL games in its first two seasons since its resurrection, but that won’t continue in 2024.

As the two leagues prepare to merge, the new season won’t begin until March 30th. Due to pre-existing contracts for PGA Tour and other golf events, the network wasn’t able to commit to broadcasting the spring football league.

“We enjoyed our relationship with the USFL and Fox, but the new earlier schedule made it impossible for us to continue,” NBC Sports Executive Vice President of Communications Greg Hughes told Sports Business Journal. “We wish them success with the new league and their new partners.”

With the departure of NBC Sports, ESPN and FOX Sports will be the two television partners for the league.

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Stephen A. Smith: I Deserve to Be Highest-Paid ESPN Employee

“I’m doing all of these things. I’m not doing all of that to be in second place. I’m not doing all of that to look up at somebody else to see that they’re making more than me…”

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Stephen A. Smith and Clay Travis

Stephen A. Smith has been ESPN’s top dog for over a decade, and during his next contract negotiations, he plans to be paid like it — whether it’s ESPN or someone else signing the checks.

OutKick’s Clay Travis recently sat down with Stephen A. Smith and discussed a variety of media topics, including the latter’s next paycheck. Travis said that he hopes the price of top media personalities continues to rise, and asked Smith if it was important to him that he was the highest-paid talent at ESPN. Stephen A. did not mince words in his response.

“Yes. I’m not stuttering,” Stephen A. said. “Hell, yes, that’s absolutely true. I’ve mastered my own business in the world of sports television. Clay Travis, I’ve been number one for 12 years. April 1st will mark 12 consecutive years I’ve been number one. Not only have I been number one every year, I’ve been number one every week in every month of every year for the last 12 years. You don’t get to say that about too many people.

“I look at whether it’s Pat McAfee as Mike Greenberg, Scott Van Pelt, it’s Troy Aikman, it’s Joe Buck, it’s Kirk Herbstreit. The list goes on and on. I’m so honored to have the colleagues that I have that I work with at ESPN every day. And at the end of the day, it would be nice for one day for this man to stand before everyone and be like, this is not I’m number one and this says I’m number one.”

Notably, Stephen A. mentions Joe Buck and Troy Aikman by name there because the Monday Night Football hosts are currently the only two ESPN talents that make more than Smith.

According to figures provided by TheSpun, Stephen A. makes $12 million per year, while Buck and Aikman make $15 million and $18 million per year, respectively.

However, Stephen A.’s value is much better for ESPN, as while the MNF duo only does one show with sporadic appearances across the network, Smith is everywhere. He does First Take, he has his own show, he covers the NBA on NBA Countdown, he hosts an alternate NBA telecast, he does appearances for other ESPN programs, and even finds time to guest star on ABC’s General Hospital. Smith knows he’s valuable to ESPN and Disney, but knows he’s set himself up for a life outside of them both should it come to that point.

“I’ve got my own YouTube channel,” Smith said. “I’ve got my own show. It’s not even just a podcast. It’s a show with a fully loaded television studio. That’s what I built for myself, that could go linear or digital. The list goes on and on. I’m doing all of these things. I’m not doing all of that to be in second place. I’m not doing all of that to look up at somebody else to see that they’re making more than me when I’m producing superior ratings and revenue. No, I’m not doing that. And I’m not apologizing to anybody for it.”

Stephen A. Smith finished his answer with poignant words for Disney and ESPN.

“Again, I’ve got great relationships and what have you, but this is a business and Disney has a right to run its business the way it sees fit. ESPN does as well. But if they do, so do I. I hope that we’re able to work it out. I’m confident that we will, because I’m incredibly happy there. We’ll see.”

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