Collapse of Regional Sports Networks (Diamond Sports Group files bankruptcy, Warner-Discovery looking to leave business, Xfinity drops Bally)

[KevFu]

They’re basically turning it into TNT, but it was also a situation where they ditched a model they wasn’t not working even though they were ended up scaling back on sports content. But it’s only a matter of time before they give up or sell off their RSN’s like Bally’s is having to and AT&T eventually do.

I really don't think they "ditched a model that wasn't working" (as in, a Sports Network).

NBCSN was #2 to ESPN, ahead of FS1, ahead of ESPN2. The content that NBCSN didn't move over to USA Network was NON-EVENT stuff. The filler content that makes a station a 24/7 sports stations. And the vast majority of it is incredibly cheap to produce: It was SPORTS TALK RADIO with a camera on the host.

If NBCSN wasn't working, they'd ditch the expensive stuff, not the cheap stuff. By merging USA Network and NBC Sports (a) it can't be CALLED NBC Sports because half the stuff is scripted studio-made non-sports content. (b) they bolstered TWO outlets:

Sports fills large holes USA Network was facing to save them from the studio shortfall;
the NBC studio based product that USED to go to USA if NBC passed... now is Peacock Original Programming, which provides THAT with things people can't get on their cable.

They made both USA and Peacock move valuable by cutting sports talk radio on TV.

 

[GKJ]

I really don't think they "ditched a model that wasn't working" (as in, a Sports Network).

NBCSN was #2 to ESPN, ahead of FS1, ahead of ESPN2. The content that NBCSN didn't move over to USA Network was NON-EVENT stuff. The filler content that makes a station a 24/7 sports stations. And the vast majority of it is incredibly cheap to produce: It was SPORTS TALK RADIO with a camera on the host.

If NBCSN wasn't working, they'd ditch the expensive stuff, not the cheap stuff. By merging USA Network and NBC Sports (a) it can't be CALLED NBC Sports because half the stuff is scripted studio-made non-sports content. (b) they bolstered TWO outlets:

Sports fills large holes USA Network was facing to save them from the studio shortfall;
the NBC studio based product that USED to go to USA if NBC passed... now is Peacock Original Programming, which provides THAT with things people can't get on their cable.

They made both USA and Peacock move valuable by cutting sports talk radio on TV.

They thought it wasn’t working. If streaming took from it, or they needed to move the sports content, then they felt it no longer made sense. If it was they wouldn’t have killed it.

 

[KevFu]

They thought it wasn’t working. If streaming took from it, or they needed to move the sports content, then they felt it no longer made sense. If it was they wouldn’t have killed it.

See, you're saying the exact opposite thing as me, but making my exact point.

You say they "killed it."

NBC Sports Network was the home of Premier League soccer. IndyCar, NASCAR, A-10 Basketball, Golf, figure skating, USFL football, and of course, Olympics trials and Olympic Games coverage.

If NBC Sports "wasn't working" then why do they STILL HAVE a channel that's the home to Premier League soccer. IndyCar, NASCAR, A-10 Basketball, Golf, figure skating, USFL football, and of course, Olympics trials and Olympic Games coverage?

If NBC Sports wasn't working, then USA Network would contain almost all of NBC Sports. But it does. It's no different than Outdoor Life Network rebranding as NBC Sports Network... the new name is more accurate to what the channel is.

USA Network is more accurate than NBC Sports because when live sports aren't on, there's not sports-related content.

 

[GKJ]

See, you're saying the exact opposite thing as me, but making my exact point.

You say they "killed it."

NBC Sports Network was the home of Premier League soccer. IndyCar, NASCAR, A-10 Basketball, Golf, figure skating, USFL football, and of course, Olympics trials and Olympic Games coverage.

If NBC Sports "wasn't working" then why do they STILL HAVE a channel that's the home to Premier League soccer. IndyCar, NASCAR, A-10 Basketball, Golf, figure skating, USFL football, and of course, Olympics trials and Olympic Games coverage?

If NBC Sports wasn't working, then USA Network would contain almost all of NBC Sports. But it does. It's no different than Outdoor Life Network rebranding as NBC Sports Network... the new name is more accurate to what the channel is.

USA Network is more accurate than NBC Sports because when live sports aren't on, there's not sports-related content.

But USA is still USA. It's not NBCSN even though they have almost every sports property NBC has. NBC, in their view, also doesn't have enough inventory to support it's own 24-hour sports network.

 

[KevFu]

That's illogical and wrong.

 

[jkrdevil]

This is off topic, but both are right in regards to USA and NBCSN. The combo of pandemic and streaming taking off left USA network without much original programming (as what remained in production was being moved Peacock) and needed sports to help maintain its cable fees. At the same time with the NHL splitting the tv contract that was in negotiation NBCSN was looking at losing half (and ultimately all) of its weeknight content especially from April to June. It still has other properties (soccer, NASCAR and others), but all were mostly weekend that could be shifted channels. So NBC decided to consolidate the two (and be able to add sports to Peacock as well). It was loss of programming at both that did it.

Of course once the decision to consolidate was made it took pressure off to retain NHL and they ultimately walked away from the second half of the NHL deal. But the NHL deciding to split the rights at the onset of the negotiations was the death knell to NBCSN.

But none of this has to do with the current regional sports channel situation. Those channels still have the content for now,

 

[Llama19]

Federal judge orders Phoenix Suns, Mercury to put new media rights deal on hold

To quote:

"A bankruptcy judge in Texas ordered the Phoenix Suns and Phoenix Mercury to roll back its new media rights deal while the company that had previously carried the teams' regular season games goes through bankruptcy proceedings.

Diamond asked the judge to void the deal between the Suns, Gray and Kiswe, the streaming company that was part of the new deal. U.S. Bankruptcy Judge Christopher Lopez agreed with Diamond and ruled against the Suns deal Wednesday morning.

The deal between the Suns, Gray and Kiswe “were executed in violation of the automatic stay and voidable, and they are hereby voided,” Lopez wrote."

Source: www.bizjournals.com/phoenix/news/2023/05/03/judge-orders-suns-to-put-new-tv-deal-on-hold.html

 

[TheLegend]

That would be the first one I think.

The Phoenix Suns are going to local network TV.

Weird how this is all going back to the 90’s

In Arizona at least, it's out of necessity if you want to expand your coverage.

 

[LadyStanley]

 

[GindyDraws]

Federal judge orders Phoenix Suns, Mercury to put new media rights deal on hold

To quote:

"A bankruptcy judge in Texas ordered the Phoenix Suns and Phoenix Mercury to roll back its new media rights deal while the company that had previously carried the teams' regular season games goes through bankruptcy proceedings.

Diamond asked the judge to void the deal between the Suns, Gray and Kiswe, the streaming company that was part of the new deal. U.S. Bankruptcy Judge Christopher Lopez agreed with Diamond and ruled against the Suns deal Wednesday morning.

The deal between the Suns, Gray and Kiswe “were executed in violation of the automatic stay and voidable, and they are hereby voided,” Lopez wrote."

Source: www.bizjournals.com/phoenix/news/2023/05/03/judge-orders-suns-to-put-new-tv-deal-on-hold.html

Boo!

The Suns had every right to opt out of the deal as their contract was expiring and it's not like Bally's has shown much growth potential over the past couple of years.

 

[eddygee]

Bankruptcy courts are weird beasts. We’ll learn more about how this all plays out soon.

Which was something I mentioned the beginning of this thread when folks were all like these leagues could just jump out of these deals and create new deals that left the current contracted deals alone. It won't be that easy these teams have contracts and Diamond is covered under Bankruptcy protections largely.

It's really a relationship, teams greatly benefitted in good times and now they must share in the pain and take a haircut.

 

[mouser]

Which was something I mentioned the beginning of this thread when folks were all like these leagues could just jump out of these deals and create new deals that left the current contracted deals alone. It won't be that easy these teams have contracts and Diamond is covered under Bankruptcy protections largely.

It's really a relationship, teams greatly benefitted in good times and now they must share in the pain and take a haircut.

This part of the bankruptcy process is more complicated. The primary Creditors who extended billions of dollars in loans to Diamond Sports will have to take a haircut, likely in exchange for equity.

The sports teams are creditors only in the sense that they are owed money which hasn’t been payed by Diamond Sports. The teams are at the bottom of the creditor priority tree.

The bankruptcy court can terminate contracts, along with many other powers including delaying creditors from exercising relief options in contracts—which appears to have recently happened as the Phoenix Suns sought to sign a new TV contract with a different broadcaster.

I don’t believe the bankruptcy court can force the sports teams to renegotiate any existing contracts. And another layer of complexity is Diamond is probably happy with a significant % of the broadcast contracts—their ultimate restructuring bankruptcy goal is only to terminate or force a renegotiation of some unknown % of their sports team contracts.

 

[darth5]

I am livid that majority of the NHL teams are handcuffed to this stupid now bankrupt Bally sports. They improved nothing on content and could not start up an viable streaming operation to replace lost revenue. Late this season the regional Bally outfit tried to launch a detached streaming package at $30 a month. I was wary and comments showed I was right-- it was total crap.
Not to mention that even for SC playoffs you are now forced to pay for a live tv package to see any games. Let's face it, NHL acts like a 5th tier sport and so they are treated as one. NHL needs to wake up. They act like we are in the 80s in Cable heyday. I have watched exactly 2 games live this year. Only one of those was my hometown team.

 

[46zone]

I am livid that majority of the NHL teams are handcuffed to this stupid now bankrupt Bally sports. They improved nothing on content and could not start up an viable streaming operation to replace lost revenue. Late this season the regional Bally outfit tried to launch a detached streaming package at $30 a month. I was wary and comments showed I was right-- it was total crap.
Not to mention that even for SC playoffs you are now forced to pay for a live tv package to see any games. Let's face it, NHL acts like a 5th tier sport and so they are treated as one. NHL needs to wake up. They act like we are in the 80s in Cable heyday. I have watched exactly 2 games live this year. Only one of those was my hometown team.

You need a live TV package if you want to watch the NBA, MLB, and college football playoffs too. Live TV is not going anywhere, anytime soon. Not to mention the NHL has seen an increase in playoff viewership since making their deal with ESPN & Turner.

 

[StreetHawk]

I am livid that majority of the NHL teams are handcuffed to this stupid now bankrupt Bally sports. They improved nothing on content and could not start up an viable streaming operation to replace lost revenue. Late this season the regional Bally outfit tried to launch a detached streaming package at $30 a month. I was wary and comments showed I was right-- it was total crap.
Not to mention that even for SC playoffs you are now forced to pay for a live tv package to see any games. Let's face it, NHL acts like a 5th tier sport and so they are treated as one. NHL needs to wake up. They act like we are in the 80s in Cable heyday. I have watched exactly 2 games live this year. Only one of those was my hometown team.

NHL is always behind. I mean, if you compare the salary caps of the NBA and NFL to the NHL, the NHL is the one that is massively lagging behind in terms of % cap increase from what it was in 19-20 season when Covid first hit to where the other leagues have it next season.

NFL cap for 2023 is up $26.6 from 2020 season for a 13.4% increase
NBA is up $14.5 mill in 22-23 from the 19-20 season for a 13.3% increase

NHL is only $1 mill higher this season than in 19-20 and $2 mill expected higher for 23-24 season
That's 1.2% - 2.5% over the same time.

Did the NHL and the PA make the right decision in their return to play? NFL, their cap went down in 2021 season. So, the players that year took the hit. Interesting the disparity in the % cap increase between the NHL and the other 2 salary cap leagues.

 

[Yukon Joe]

NHL is always behind. I mean, if you compare the salary caps of the NBA and NFL to the NHL, the NHL is the one that is massively lagging behind in terms of % cap increase from what it was in 19-20 season when Covid first hit to where the other leagues have it next season.

NFL cap for 2023 is up $26.6 from 2020 season for a 13.4% increase
NBA is up $14.5 mill in 22-23 from the 19-20 season for a 13.3% increase

NHL is only $1 mill higher this season than in 19-20 and $2 mill expected higher for 23-24 season
That's 1.2% - 2.5% over the same time.

Did the NHL and the PA make the right decision in their return to play? NFL, their cap went down in 2021 season. So, the players that year took the hit. Interesting the disparity in the % cap increase between the NHL and the other 2 salary cap leagues.

You can compare the total salary cap of the NHL compared to other sports if you want, but you really can't compare the % increase.

The NHL/NHLPA made the deliberate choice during the pandemic that player salaries would be honoured, even though league revenues took a massive hit. The trade-off was that in order to maintain the 50/50 revenue split the teams would have to be paid back over the next few years.

The last year or two the salary cap has been deliberately suppressed in order to pay back the owners.

 

[Spydey629]

I am livid that majority of the NHL teams are handcuffed to this stupid now bankrupt Bally sports. They improved nothing on content and could not start up an viable streaming operation to replace lost revenue. Late this season the regional Bally outfit tried to launch a detached streaming package at $30 a month. I was wary and comments showed I was right-- it was total crap.
Not to mention that even for SC playoffs you are now forced to pay for a live tv package to see any games. Let's face it, NHL acts like a 5th tier sport and so they are treated as one. NHL needs to wake up. They act like we are in the 80s in Cable heyday. I have watched exactly 2 games live this year. Only one of those was my hometown team.

The only sport in the Big Four you can watch without a live TV package is the NFL. The bulk of MLB, NBA, and NHL games are on cable. And the only sport made for cord cutters if MLS, IF you have AppleTV.

I get complaining about Bally's in general, but the system is what it is. For now. The whole ecosystem is changing. Let's see where things stand even this fall, much less in a year or two.

 

[joelef]

NHL is always behind. I mean, if you compare the salary caps of the NBA and NFL to the NHL, the NHL is the one that is massively lagging behind in terms of % cap increase from what it was in 19-20 season when Covid first hit to where the other leagues have it next season.

NFL cap for 2023 is up $26.6 from 2020 season for a 13.4% increase
NBA is up $14.5 mill in 22-23 from the 19-20 season for a 13.3% increase

NHL is only $1 mill higher this season than in 19-20 and $2 mill expected higher for 23-24 season
That's 1.2% - 2.5% over the same time.

Did the NHL and the PA make the right decision in their return to play? NFL, their cap went down in 2021 season. So, the players that year took the hit. Interesting the disparity in the % cap increase between the NHL and the other 2 salary cap leagues.

 

[KevFu]

The cap is tied to the strength of the union negotiating the CBA.

MLB and the NHL have the two strongest unions. NFL is the weakest.

The NFL is in better financial shape, sure because of TV, but also because the players have no power and their contracts aren't even guaranteed.

 

[eddygee]

Texas bankruptcy court judge today blocked the Phoenix Suns’ ballyhooed TV deal with Gray Television



Judge today officially blocked the move that was put on hold last week via an injunction. Judge says the team violated the bankruptcy code when it unilaterally exited its contract with Diamond Sports, the owner of 19 Bally Sports regional sports networks, including Bally Sports Arizona.

 

[Llama19]

Texas bankruptcy court judge today blocked the Phoenix Suns’ ballyhooed TV deal with Gray Television



Judge today officially blocked the move that was put on hold last week via an injunction. Judge says the team violated the bankruptcy code when it unilaterally exited its contract with Diamond Sports, the owner of 19 Bally Sports regional sports networks, including Bally Sports Arizona.

Local AZ article...

Judge blocks Phoenix Suns' move to switch local television providers

To quote:

"According to a CNBC report on Wednesday, Judge Christopher Lopez ruled the Suns violated a section of the bankruptcy code and must comply with the terms of their current agreement with Diamond. He added the Suns and Diamond must agree to find an appraiser to assess any competing deal to move the process forward. The Suns argued the deal with Diamond ended at the conclusion of the regular season and the team had attempted to negotiate a new agreement with Bally, CNBC reported.

However, the judge found the Suns moved too quickly to announce the deal in late April without proper communication with Diamond. CNBC cited a team spokesman saying the team is committed to working "collaboratively on a fair resolution.''"

Source: www.azcentral.com/story/sports/nba/suns/2023/05/10/judge-blocks-phoenix-suns-move-to-switch-local-television-providers/70205922007/

 

[eddygee]

Playing out much like I figured it would a few months ago when these RSN rumblings happened and leagues like MLB were talking pretty flippant about what they were gonna do with their rights and stuff as is they didn't have contracts with these RSNs.

Again Bankruptcy protections are pretty clear. What I think is obvious is leagues teams were/are trying to negotiate via the public to put pressure on RSNs. I'm not sure how effective thats going to work in the court system where laws and code are black and white. John Ourand said it best in Feb/March there is going to be a pain period of about 3 to 5 yrs. Leagues and teams will take haircuts as the market readjust.

The local RSN TV deal payments were overinflated readjustment will come so that the market can get healthy. We just don't know what that will look like.

 

[mouser]

I've been looking through the Diamond Sports bankruptcy filings to see if there's any information leaked about Diamond's contract details with any sports team, not just the NHL but also MLB and NBA. How much is each team being paid, how long are the terms?

So far every court document which might contain such information has been either filed under seal (meaning not available to the public) or the key details redacted. Even the league and team legal responses to Diamond Sports have the financial info sealed or redacted.

 

[Spydey629]

Playing out much like I figured it would a few months ago when these RSN rumblings happened and leagues like MLB were talking pretty flippant about what they were gonna do with their rights and stuff as is they didn't have contracts with these RSNs.

Again Bankruptcy protections are pretty clear. What I think is obvious is leagues teams were/are trying to negotiate via the public to put pressure on RSNs. I'm not sure how effective thats going to work in the court system where laws and code are black and white. John Ourand said it best in Feb/March there is going to be a pain period of a out 3 to 5 yrs. Leagues and teams will take haircuts as the market readjust.

The local RSN TV deal payments were overinflated readjustment will come so that the market can get health. We just don't know what that will look like.

This whole thing supports my theory, the WBD teams will be better off - at least in the transition - than the Bally’s teams.

Which I guess is pretty obvious, since WBD just wants out, but is willing to help the teams find new homes, whereas Sinclair seems to just want to get a rate reduction (which there is a bit of irony in that).

 

[eddygee]

This whole thing supports my theory, the WBD teams will be better off - at least in the transition - than the Bally’s teams.

Which I guess is pretty obvious, since WBD just wants out, but is willing to help the teams find new homes, whereas Sinclair seems to just want to get a rate reduction (which there is a bit of irony in that).

It is ironic isn't it. In this case it might be better to be with a RSN that is going full belly up vs one that is restructuring.