November 12, 2024

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Diamond Sports Group has shed most of its broadcast deals, cut payouts, and assumed two different naming-rights partners for its regional sports networks over the last few years. Its saga may be nearing a resolution, as the company faces a U.S. Bankruptcy Court judge this week.

One key partner monitoring the proceedings closely: Major League Baseball, which has objected to DSG’s reorganization plan and is unhappy with how the operator has treated its franchises. We’ll explain what’s at stake and how each of the 12 teams DSG televised in 2024 are affected.

— Eric Fisher [[link removed]], David Rumsey [[link removed]], and Amanda Christovich [[link removed]]

DSG’s Future Hangs on Bankruptcy Hearing As MLB Objects to Plan [[link removed]]

Kirby Lee-Imagn Images

After nearly two years of turbulence and many pronouncements of its impending demise, this is the week when Diamond Sports Group finally learns whether it will become a viable company once again.

The regional sports network operator is scheduled to go before a U.S. Bankruptcy Court judge in a hearing starting Thursday to determine whether its reorganization plan can be confirmed. If the plan is approved, the FanDuel Sports Network parent will have a new lease on life, marking a major turnaround after first filing for bankruptcy in March 2023.

If not, a wind-down of the company that has been expected in some corners for an even longer period of time will almost certainly accelerate.

There have been several key building blocks in DSG’s slow but steady reorganization. Among them are reworked rights deals with both the NBA and NHL [[link removed]], a restructuring of its debt and resolution of legal claims [[link removed]] against parent company Sinclair Inc., a new naming rights deal with FanDuel [[link removed]] for the RSNs, and a pending streaming distribution pact with Amazon [[link removed]].

The MLB Question

There has been one significant obstacle throughout the reorganization process, however: Major League Baseball. The league has been upset with DSG ever since it abruptly dropped its Padres broadcasts early in the 2023 season [[link removed]], and has been regularly critical of the company’s conduct, both in form and function, since then.

On Friday, MLB filed an expected objection to the reorganization plan [[link removed]], saying “there is a substantial likelihood that the debtors will find themselves in financial distress and/or bankruptcy court in the near future.”

That sentiment highlights a period of significant turbulence for the 12 MLB clubs that DSG televised in 2024. That group has since splintered in several directions, and most are grappling with at least a short-term hit in a critical revenue source—and possibly a longer-term one. The involved clubs’ paths include:

Angels: The club is finalizing a return to DSG, something that’s been in negotiations for several weeks [[link removed]]. Braves: This is the one team that has not seen any reduced rights fees to date [[link removed]] from DSG, but the company’s assumption of Atlanta’s rights for 2025 was the foundation of MLB’s recent objection in bankruptcy court. Brewers, Guardians, and Twins: The trio last month struck separate pacts [[link removed]] to have MLB produce and distribute their local games. The Twins, however, are also now up for sale [[link removed]]. This group will join the Diamondbacks, Padres, and Rockies in the league-operated model. Cardinals: The venerable franchise renewed last week with DSG [[link removed]] in a new, multiyear deal that reduces its rights fee by more than 20%. Marlins: Like St. Louis, Miami has renewed its ties with DSG. Rangers: The 2023 World Series champions have cut ties with DSG, and Texas is considering starting its own RSN, not unlike the new Victory+ that shows the neighboring Stars of the NHL. Completing a new-look local sports media situation in Dallas, the NBA’s Mavericks also are no longer with DSG and stream their games through MavsTV while broadcasting them over the air on Tegna stations throughout the region. Rays: This is still undetermined, but the local-media situation is hardly the largest of its current issues as the club also has both short-term and long-term facility problems [[link removed]]. Reds: Cincinnati’s future landing spot is undetermined, but it also won’t be DSG as late Friday, the club finalized a pact to sell its equity in FanDuel Sports Network Ohio for just $1. Royals and Tigers: These clubs are in a similar, undetermined situation as the Rays. Any return to DSG would require a revised rights deal.

“We remain in discussions with our other MLB team partners on go-forward plans, and we are confident that our linear and digital framework drives maximum value,” DSG CEO David Preschlack said last week.

So while baseball’s hot-stove season focuses on players like Juan Soto [[link removed]] and Roki Sasaki [[link removed]], there is yet another big piece of offseason drama due to unfold in the coming days.

The Caitlin Clark Show Is Hitting the LPGA Tour in a Big Way [[link removed]]

Jeffrey Becker-Imagn Images

Caitlin Clark joked she would spend her WNBA offseason trying to become a professional golfer after the former Iowa women’s basketball star won Rookie of the Year [[link removed]], made the All-WNBA First Team [[link removed]], and helped set numerous attendance and viewership records [[link removed]] across the league.

As she ponders a “Lionel Messi–like,” seven-figure offer [[link removed]] to play in the new Unrivaled 3-on-3 women’s basketball league that will begin in January, Clark is getting the chance to show off her golf skills on the LPGA Tour, where she’s competing in Wednesday’s pro-am event ahead of this week’s event in the Tampa Bay area.

The tournament, officially named The Annika driven by Gainbridge, has seen a big boost in interest since announcing Clark’s participation last month [[link removed]]. A tournament spokesperson tells Front Office Sports there was an increase in ticket sales ($25 for the pro-am day) after the Clark news.

Clark will play with No. 1–ranked Nelly Korda and tournament host Annika Sörenstam, winner of 72 LPGA events and 10 major championships. Before teeing off at 7 a.m. ET, Clark’s warmup range session will be livestreamed on social media.

While Clark’s full 18-hole round won’t be streamed or televised, Golf Channel’s studio show Golf Today is coming on the air at 11 a.m. ET, 90 minutes earlier than its typical start, and will include live tournament look-ins—likely including the conclusion of Clark’s time on the course. A mid-round walk-and-talk interview with Clark will also be livestreamed on social media.

On Tuesday, Clark—who has her own endorsement deal with tournament sponsor Gainbridge—will be a panelist at a women’s leadership summit at Pelican Golf Club, where the event is being played. That will also be livestreamed online.

Clark’s interest in golf has been growing in recent years. Last month, she posted a video on social media of her nearly making a hole-in-one [[link removed]]. Last summer, she drew big crowds while playing in the pro-am of the PGA Tour’s John Deere Classic in Illinois. While at Iowa, the Big Ten Network posted several YouTube videos of Clark playing golf.

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Inside the Rise of Sports Mergers

As investment surges across all sports levels—from pro to youth—by diverse investors, consolidation and mergers are on the rise. Promising companies are being rapidly acquired, and some competitors are merging.

Join us Nov. 13 at 1 p.m. ET for Future of Sports: Mergers & Acquisitions [[link removed]], supported by The United Football League, to explore the future implications for teams, leagues, schools, and athletes.

In this virtual summit, industry leaders will share insights on the growing trend of team acquisitions, the impact of foreign investments on valuations, the role of mergers and acquisitions in reshaping the live sports media landscape, and behind-the-scenes details of the acquisition process.

Register now [[link removed]].

How Schools Are Raising Money to Prep for House v. NCAA Settlement

Jay Biggerstaff-Imagn Images

If the House v. NCAA settlement [[link removed]] receives final approval in April, all Division I schools will be allowed to share revenue with players for the first time in history. Beginning in 2025, schools can pay up to about $22 million total to all of the athletes in their departments, and all power conference schools, as well as some others, are expected to participate.

But with revenue-sharing just a year away, schools are scrambling to figure out how to fund these payments—despite the fact they rake in well over $100 million, and in some cases more than $200 million, per year.

In October, the NCAA, one of the named defendants in the lawsuit, sent a brief FAQ to schools to explain the new rules set by the settlement. But the document, reviewed by Front Office Sports, did not provide guidance on how schools will pay for the revenue-sharing.

Many schools have begun soliciting donations from fans and alumni by reminding them the revenue-sharing program is looming. Others, like Ohio State, are considering more corporate sponsorships [[link removed]], including naming rights and jersey patch sponsors.

So far, the most popular idea appears to be adding fees to football game-day expenses.

In September, the University of Tennessee’s athletic department announced it would begin implementing a 10% “talent fee” on all football tickets [[link removed]]. Athletic director Danny White expects to raise $10 million per year—close to half of the House revenue payments.

Arkansas has already begun charging a 3% fee on all football home-game concessions [[link removed]].

Fees for existing products are just the beginning. In November, UNC’s athletic department began selling alcoholic beverages, including beer and wine, at men’s and women’s basketball games and other sporting events taking place in Carmichael Arena.

Many athletic departments outside the existing Power 4 conferences, whose budgets in many cases don’t come close to nine figures, aren’t sure whether they’ll participate.

You can read the rest of Amanda Christovich’s story on schools’ preparation for the House vs. NCAA settlement here [[link removed]].

TRIVIA

Test your skills in our new daily sports trivia game [[link removed]]! We’re giving our newsletter subscribers a hint for today’s question: Kentucky is one of the answers in the top five.

FRONT OFFICE SPORTS TODAY Can the NBA Cup Help Revive Lagging Viewership?

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The second edition of the NBA’s in-season tournament begins Tuesday, now branded as the NBA Emirates Cup. We sit down with longtime league executive Scott Perry to discuss the process of the tournament coming together and how the NBA can continue building on last year’s major success.

Plus, we discuss how SMU’s move to the ACC has been wildly profitable, Jerry Jones’s comments about Mike McCarthy, and we hear the story of a boxing promoter turned baseball executive.

Watch, listen, and subscribe on Apple [[link removed]], Spotify [[link removed]], and YouTube [[link removed]].

FRONT OFFICE SPORTS AWARDS

Final Call: Survey Closes Tomorrow

The Front Office Sports Best Employers in Sports Award [[link removed]] is an employee-driven award that recognizes organizations that do right by their employees through great leadership, focus on diversity, equity, and inclusion, commitment to employee well-being, and more.

The award is based entirely on anonymous survey results from sports industry professionals. Responses will be evaluated in collaboration with our primary research partner, Canvs [[link removed]], using patented AI technology free from all subjectivity and human bias.

This is your final chance to complete the survey [[link removed]] and recognize your employer. The survey closes tomorrow at 11:59 p.m. ET.

Conversation Starters USC basketball phenom JuJu Watkins is getting an NBC docuseries at age 19. It’ll premiere Nov. 23 [[link removed]]. The Tigers are building a Home Plate Club featuring premium seats, all-inclusive food and drinks, and a VIP garage. Check out the renderings [[link removed]]. Kirk Herbstreit’s dog, Ben, was a beloved member of College GameDay. Watch Kirk’s tribute to his recently departed pup [[link removed]]. SURVEY

Want a chance to win $250? Help FOS improve by taking a few minutes to complete a brief survey [[link removed]]. As a thank-you, we’re offering a chance to win a Visa gift card or FOS merch of your choice. Submissions are open through Nov. 19.

Editors’ Picks Why Won’t Jerry Jones Hang Curtains for Cowboys Games? [[link removed]]by Margaret Fleming [[link removed]]AT&T Stadium put up curtains for “WrestleMania” and The Eras Tour. The NFL Is Becoming the League With No Borders [[link removed]]by David Rumsey [[link removed]]Where will the NFL go next? International expansion will only get bigger. Trump Win Puts Sports Back in the White House [[link removed]]by Daniel Roberts [[link removed]]With Trump back in the White House, sports get more political again. Question of the Day

Do you think Diamond Sports Group will emerge from bankruptcy?

Yes [[link removed]] No [[link removed]]

Monday’s result: 37% of respondents said they like the NFL’s international push.

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