Diamond Sports activities Group on Wednesday introduced that it’s getting into a restructuring settlement with collectors, together with Amazon, to emerge out of debt. The media firm, which operates Bally Sports activities, declared chapter final March after getting into into costly promoting agreements and a shopper shift to cord-cutting.
As a part of the settlement, Amazon will make investments $115 million within the firm, giving its Prime Video customers entry to Diamond’s sports activities content material, ought to the deal undergo pending courtroom approval.
Diamond oversees 18 networks as part of Bally Sports activities, which has the rights to 14 NBA, 11 NHL, and 11 MLB groups. Prime customers will have the ability to buy entry to stream their native Diamond channels and consider dwell video games throughout the three sports activities, in addition to choose pre-and post-game protection.
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“We’re thrilled to have reached a complete restructuring settlement that gives an in depth framework for a reorganization plan and substantial new financing that can allow Diamond to function and thrive past 2024,” mentioned Diamond Sports activities CEO David Preschlack in a assertion. “We’re grateful for the assist from Amazon and a gaggle of our largest collectors who clearly imagine within the value-creating potential of this enterprise.”
Amazon will additionally achieve the streaming rights for all common season video games for the Detroit Tigers, the Kansas Metropolis Royals, the Miami Marlins, the Milwaukee Brewers, and the Tampa Bay Rays.
Collectors will present Diamond with an estimated $450 million to assist the corporate get out of debt and proceed operations.
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Diamond was acquired by Sinclair Broadcast Group in 2019 from the Walt Disney Co. for an estimated $10 billion.
Nonetheless, Diamond sued Sinclair after alleging Sinclair took as much as $1.5 billion from Diamond’s enterprise. In a separate settlement, Sinclair has agreed to pay Diamond $495 million and supply operational assist to help in Diamond’s reorganization.
