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NBA Wants Media Rights Back From Diamond Sports After 2024-25 Season

Sinclair is also reportedly exploring a purchase of Diamond Sports Group outright.

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Bally Sports
Courtesy: Jerome Miron, USA Today Sports

Diamond Sports Group is in the process of trying to restructure its $8.6 billion in debt as it tries to find a way to escape Ch. 11 bankruptcy. As the proceedings continue, the future of the regional sports networks is becoming a concern for many sports leagues and fans, pointing to how the Sinclair, Inc. subsidiary dropped the local rights for the San Diego Padres and Arizona Diamondbacks during the Major League Baseball season.

According to a report from the New York Post, the company is working on a deal with the NBA that would cut the nearly $600 million it pays for annual rights fees by 20% for the next two seasons. Within these negotiations though, the NBA reportedly wants all of its local rights back after the 2024-25 season, coinciding with the expiration of the national contract with The Walt Disney Company and Warner Bros. Discovery.

A source told the Post that NBA Commissioner Adam Silver plans to sell the streaming rights for the league to a technology company, such as Amazon, beginning in the 2025-26 season. MLB Commissioner Robert D. Manfred Jr. testified in bankruptcy court earlier this year that Sinclair executive chairman David Smith threatened to declare bankruptcy and selectively reject contracts if the league did not grant it direct-to-consumer broadcast rights to strengthen the Bally Sports Plus app.

When Manfred decided to stand firm and shot down his proposal, Smith followed through with what he said, the very threat of which prompted the league to create a local media department prepared to broadcast these games. Manfred stated that the league is ready to produce and disseminate local game broadcasts for the 14 teams that currently remain on Bally Sports regional networks. The deadline for debtors to object to the relief within the motion to compel, which was filed earlier in October, was recently extended to Wednesday, Nov. 6 at 5 p.m. CST.

Sinclair is also reportedly exploring a purchase of Diamond Sports Group outright, offering $850 million in partnership with Bally’s Corporation independent director Soo Kim to regain control over the subsidiary. At the moment, Diamond Sports Group is responsible for airing local games on regional sports networks for 39 teams across MLB, the NBA and NHL. Since the bankruptcy filing, it also lost rights to the Phoenix Suns, Phoenix Mercury and Arizona Coyotes, prompting the closure of Bally Sports Arizona. Sinclair currently has ownership over 185 television stations in 86 markets and is being viewed as a β€œlast gasp” to keep RSNs broadcasting on local television.

Diamond Sports Group is reportedly seeking another extension from Nov. 29, 2023 to Jan. 29, 2024 to come to terms on and finalize a restructuring plan. The subsidiary is utilizing mediators from the U.S. Bankruptcy Court in the Southern District of Texas to try to come to a resolution in its attempt to reorganize. At the moment, Diamond is suing Sinclair and alleging $1.5 billion in fraud through misconduct related to β€œfraudulent transfers of assets, unlawful distributions and payments, breaches of contracts, unjust enrichment and breaches of fiduciary duties.”

As part of a potential purchase, Sinclair would want Diamond to drop the lawsuit, which claims that Sinclair took money from the subsidiary to fulfill its own needs despite having knowledge of its insolvency. Moreover, Sinclair claimed that Diamond would not emerge from its bankruptcy in response to the lawsuit several months ago.

The offer has reportedly been presented to junior creditors of Diamond Sports Group, which accrue approximately $8 billion of the outstanding debt. The faction will need to determine whether or not to accept the deal, which would result in a sizable loss since the debt has a trading value of around four cents on the dollar.

The Bally Sports-branded group of regional sports networks was originally purchased by Sinclair from The Walt Disney Company after the latter acquired Twenty-First Century Fox. Under an antitrust-related divestiture by the U.S. Department of Justice in 2019, it was asserted that if Disney did not sell these assets, it would result in higher prices for cable sports programming licensed to multichannel video programming distributors (MVPDs) around the country.

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John Skipper ‘Expects’ NBA To Have More Than 2 Partners in New TV Deal

“They’re gonna end up with more partners than they have now…with somewhere between two or three times the money they have now.”

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Former ESPN President and current Meadowlark Media CEO John Skipper thinks the NBA will go the NFL route and have more than two broadcast partners for their upcoming media rights deal.

During an episode of the Sporting Class podcast, John Skipper and cohorts David Samson and Pablo Torre discussed the upcoming NBA media rights deal, under the guise of Dallas Mavericks governor Mark Cuban selling the team, and how it could play out for teams moving forward. When it came to the total valuation of the NBA’s upcoming rights deal, Skipper was bullish on the NBA’s future.

“They’re gonna end up with more partners than they have now,” Skipper said, “they’re gonna end up with, in my opinion, with somewhere between two or three times the money they have now,” before host Pablo Torre added some additional color, stating “Because of broadcast partners in television and also the tech companies.”

The NBA has famously featured one or two broadcast partners for most of its lifespan. CBS held NBA broadcasting rights from the mid-70s until the 1989-90 season, then lost the rights to NBC from 1990 until 2002, with interspersing of cable broadcast holders like USA Network, ESPN, and Turner between there.

In 2002, the NBA shifted to a more rigid version of its two-partner system, where ABC and ESPN would split games with Turner Broadcasting. The league extended its agreement with both networks multiple times, which will finally come to a head in 2024.

For the first time, the NBA could look to expand across multiple channels, similar to how the NFL handles business, where multiple broadcast partners will air games on either certain days of the week or certain holidays. While Turner could be planning for life without the NBA, both Amazon and NBC are planning an aggressive pursuit of NBA rights during the next media rights negotiation.

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Kirk Herbstreit: Pat McAfee Has β€˜Changed My Experience’ on College GameDay

“You’ve changed the approach, the energy, not just on this set, but like the week. I’m having a blast.”

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Kirk Herbstreit and Pat McAfee

While many detractors say otherwise, Kirk Herbstreit is crediting Pat McAfee for positive changes in the way he and the team approach College GameDay.

During an appearance on The Pat McAfee Show, McAfee jokingly discussed leaving College GameDay due to “mean” college football fans ruining his fun and positive life. “I don’t want the negativity in my life, I don’t want the death threats,” McAfee said. Herbstreit, however, had no time for McAfee and threw the gauntlet down. “If you dare even think about leaving College GameDay,” Herbstreit said, “I’m leaving with you.”Β McAfee then responded with the famous line from Talladega Nights β€” “don’t you put that on me!”

Within the jest, however, Herbstreit lets us peek back behind the curtain to how he and the rest of the College GameDay team feel about McAfee. “You’ve changed my experience,” Herbstreit said. “You’ve changed the approach, the energy, not just on this set, but like the week. I’m having a blast…It’s like being on a team where you have a great energy. If you dare leave…” Fortunately, by the end of the segment, McAfee was back on board and admitted this would be his life for the foreseeable future.

Some pundits have felt that McAfee’s appearance on GameDay hasn’t helped grow the program, despite them confirming Herbstreit’s remarks on McAfee’s personality. Former ESPNer Dan Le Batard said on his show, “He is effusive, he is such a positive person. He is effusive in his praise for the people on that set. But now the numbers are coming back, and this is something that McAfee couldn’t have expected.”

While the ratings numbers for GameDay are higher than they’ve ever been (something Herbstreit and McAfee made sure to mention in their discussion,) they’re still under attack from FOX’s Big Noon Kickoff, who have scored some major ratings wins over this past season. According to FOX, before the Nov. 25 game between Ohio State and Michigan, Big Noon Kickoff averaged 2.34 million viewers and hit a record 4.36 million viewers from 11 a.m. ET until kickoff. This made Big Noon Kickoff the most-watched college football pregame show on television for the weekend. The recent losses have some feeling like College GameDay has lost its way.

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Al Michaels Questions If Bill Belichick Has TV Future

“Does he go into television? How about this? They put him in the booth with Kevin Burkhardt and Tom Brady next year on FOX.”

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Amidst a dismal season for the New England Patriots, one legendary sports broadcaster thinks Bill Belichick could leave coaching to join him in the world of announcing.

During last night’s Thursday Night Football broadcast between the New England Patriots and Pittsburgh Steelers, Al Michaels made a passing comment about Belichick’s status as Pats head coach moving forward β€” but it could have massive reverberations throughout two industries.

“Does he go into television?” Michaels said while speculating Belichick’s future with co-host Kirk Herbstreit. “How crazy that sounds, but he won an Emmy [for NFL Network’s NFL 100 All-Time Team series] with Cris Collinsworth and Rich Eisen. How about this? If he goes into television, they put him in the booth with Kevin Burkhardt and Tom Brady next year on FOX.”

Belichick and Brady teaming up once more doesn’t seem too far-fetched, especially considering their past successes together. Former Patriots wide receiver Julian Edelman and tight end Rob Gronkowski also prowl FOX’s airwaves, which could allow the former Patriots to dominate sports media in a way not seen since ’80s and ’90s-era Dallas Cowboys did in years past.

Unlike Brady, who is a relative newcomer to sports broadcasting, Belichick has precedent with sports TV in the past. Outside of the NFL’s Top 100 All-Time Team. Belichick served as a guest analyst for ABC’s Super Bowl XL pre-game show breaking down the action between the Steelers and the Seattle Seahawks. Belichick was praised for his work on that broadcast, despite his prior reputation as a bit of a grump. Belichick also featured heavily and was likewise praised for his appearance in ESPN’s The Two Bills, a 30 for 30 starring Belichick and Bill Parcells.

What could the future hold for Belichick? As Herbstreit says during the broadcast, “The only guy who knows is Bill Belichick.”

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