January 17, 2024

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Fans getting excited about the prospect of watching their local team through a new Amazon Prime Video streaming deal will want to temper their enthusiasm, as questions still surround Diamond Sports Group’s emerging reorganization plan. … Weather issues could impact the NFL’s divisional round after playing a major role in last weekend’s wild card games. … And the Raine Group is set for a major payday after bringing in Jim Ratcliffe to Manchester United’s ownership.

— Eric Fisher [[link removed]]

Diamond Sports Group Secures Lifeline With Amazon Deal [[link removed]]

The Augusta Chronicle

The bankrupt Diamond Sports Group has given itself a significant lifeline [[link removed]] by restructuring much of its debt, striking a major investment and content distribution deal with Amazon, and settling a thorny legal dispute with corporate parent Sinclair Inc.

But just as some questions are being answered, more are emerging—namely, what the Bally Sports regional sports networks that DSG owns and operates will broadcast long-term.

A status conference held Wednesday in DSG’s bankruptcy case contained lots of celebration among many of the involved parties, with the deals cheered as the first time a potential pathway back to solvency—and operation beyond 2024—has truly emerged for the company. But the restructuring agreements are predicated in part on undoing recent deals DSG struck with the NBA [[link removed]] and NHL [[link removed]] that would return local media rights to those leagues after the 2023-24 season—pacts based on a prior assumption that DSG would be ceasing operations.

Neither league has commented yet on whether it agrees with DSG’s new path and whether it will contest the plan in a bid to keep the regained rights. MLB is also evaluating the restructuring after seeing its prior negotiations [[link removed]] with the company cut off as the new deals emerged. DSG shows 37 teams overall across the NBA, NHL, and MLB. If the bankruptcy court approves this new structure, DSG’s existing rights deals would remain in effect.

“All of this came as a surprise, we knew nothing about it,” said Jim Bromley, a lawyer for MLB, in Wednesday’s court hearing.

Prime Entry

In addition to DSG restructuring $450 million in debt, Amazon is set to invest $115 million in bankruptcy exit financing, receiving 15% of the company. Within nine months after completion of the restructuring plan, Amazon will have an option to invest a further $50 million in DSG.

The agreement will establish Amazon Prime Video as DSG’s “primary partner” for fans to access the regional sports networks on a direct-to-consumer basis and moves Amazon further into regional sports beyond existing national-level deals with the NFL, NASCAR, and fighting promotion Premier Boxing Champions.

Amazon has not commented publicly on the DSG deal, but company outside counsel Caroline Reckler said in the status conference that Amazon is “excited about this transaction and the possibilities it provides.” Amazon’s entry is also expected to boost DSG’s DTC revenue from last year’s $49 million to a projected $658 million in 2026.

Bye Bye, Bally

The new pathway for DSG additionally will bring with it a new name. DSG lawyers disclosed during Wednesday’s status conference that a plan is in place to sunset the Bally Sports name by the end of 2024, by mutual consent with the Bally’s casino company. Bally’s originally struck the $85 million naming rights deal [[link removed]] in 2020, but the 10-year pact—which also included stock warrants—will end six years early. The shift will allow DSG to rebrand the RSNs for their presumed post-bankruptcy life.

A planned Jan. 19 hearing in the DSG bankruptcy case is no longer going forward, and DSG is now targeting being back in court as soon as Jan. 24 following a new set of pleadings.

“The fact that the company is moving in a direction that it sees this path forward I think certainly is a positive update,” said bankruptcy court judge Christopher Lopez. “But again, it’s got to satisfy the code and the evidentiary standards.”

#️⃣ ONE BIG FIG

Make It Raine 💸

$31,500,000

Fees that the Raine Group will collect for advising Manchester United on bringing in a new investor. According to Bloomberg [[link removed]], the investment bank spent the last year working with Man United’s owners, the Glazer family, to market the club to potential buyers. Billionaire Jim Ratcliffe eventually agreed to acquire a 25% stake in the English Premier League club.

Forecast for Next Round of NFL Playoffs: More Havoc [[link removed]]

Denny Medley-USA TODAY Sports

After inclement weather made NFL history on multiple fronts [[link removed]] during wild-card weekend, Mother Nature is continuing to disrupt the playoffs heading into the divisional round.

The Buffalo Bills host the Kansas City Chiefs this Sunday, and they were already set to play on two fewer days’ rest than their opponents since their first-round matchup was delayed until Monday. Now, the Bills could be facing the prospect of canceling some practices this week as more heavy snow hits Western New York.

Buffalo does have an indoor practice center, but the incoming conditions may make it unsafe for players to travel from their homes to the facility. The Buffalo Sabres have postponed Wednesday night’s matchup against the Chicago Blackhawks until Thursday due to the weather. The Bills practiced Wednesday but remain in limbo for the rest of the week. “We’ll reset the table tonight and keep working on the game plan and also work on our weather plan,” Bills coach Sean McDermott said Wednesday.

Weather is unlikely to force a postponement of Sunday’s game, but the temperature at kickoff is forecasted to drop below freezing. Meanwhile, when the Ravens host the Houston Texans in Baltimore on Saturday night, temperatures could be in the teens.

The sub-freezing forecasts come as dozens of fans are recovering from the fourth-coldest game in NFL history, which took place at Arrowhead Stadium last Saturday night. First responders in Kansas City fielded [[link removed]] nearly 70 calls from fans at the game, and 15 fans were hospitalized—seven for hypothermia and three for frostbite.

Cracking Up

After a section of Patrick Mahomes’s helmet shattered during the Chiefs’ win over the Dolphins, the star quarterback blamed the malfunction, at least in part, on the cold weather. VICIS, the maker of Mahomes’s helmet, said that the equipment “did its job” in protecting the QB but admitted that extreme conditions like the cold in Kansas City are “bound to test the limits” of its products.

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Australian Open Becomes the Anti-Wimbledon

Tennis has long been one of the more buttoned-up professional sports. Most major tournaments prize civility and discourage noise during play. However, the Australian Open is taking off in the opposite direction with live music and a two-story bar by one of the courts. Listen to the latest episode of Front Office Sports Today to hear Sports Illustrated‘s Jon Wertheim discuss the changing face of tennis.

🎧 Listen and subscribe on Apple [[link removed]], Google [[link removed]], and Spotify [[link removed]].

Conversation Starters Two days after the Philadelphia Eagles ended their season with a loss in the wild-card round to the Tampa Bay Buccaneers, Jason Kelce stopped by his neighborhood McDonald’s and surprised his favorite employee, Danielle, with a signed jersey [[link removed]]. Manchester City has unveiled [[link removed]] plans for a $12.7 million training facility for its women’s club. The space, adjacent to Man City Women’s 7,000-seat stadium, will include a high-performance weight room, hydrotherapy pools, and training pitches. On Tuesday, Colorado quarterback Shedeur Sanders and defensive back Shilo Sanders walked [[link removed]] in the Louis Vuitton Men’s Fall/Winter 2024 Show. “We want to be multidimensional. We don’t want to be just football,” said Shilo. SURVEY

Want a chance to win $250? We want to get to know our audience better and improve our coverage. Fill out our new survey [[link removed]] for a chance to win a $250 Visa gift card or free FOS merch!

Editor’s Picks Tuned In: NBA Remains At Table for a Piece of ESPN [[link removed]]by Michael McCarthy [[link removed]]The NFL was reportedly in “advanced talks” to buy a piece of ESPN How ESPN Revived ‘Monday Night Football’ and Won Over the NFL [[link removed]]by Michael McCarthy [[link removed]]'MNF' suffered from a strained relationship between its network and the league. With FSU Infractions Decision, NCAA Attempts the Illusion of Control [[link removed]]by Amanda Christovich [[link removed]]The NCAA found that an assistant coach facilitated a meeting between a booster and a prospective athlete, who offered an NIL deal. Advertise [[link removed]] Awards [[link removed]] Learning [[link removed]] Video [[link removed]] Podcast [[link removed]] Sports Careers [[link removed]] Written by Eric Fisher [[link removed]], David Rumsey [[link removed]] Edited by Matthew Tabeek [[link removed]], Brian Krikorian [[link removed]]

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